Customs Duty Calculator

Q: Who pays the customs duty, me or my supplier?

It depends on your shipping terms (Incoterms). DDP (Delivered Duty Paid): the seller pays duty and tax. DAP or FOB: you, the buyer, pay at the border. Most small imports are DAP, so the buyer gets the bill from the courier or broker. Always check your contract before you order.

Q: Why is my duty rate different from what my supplier told me?

Common reasons: Your supplier quoted their export country's rate, not your import rate. They used a different HS code. They did not include extra tariffs like Section 301. They quoted FOB when your country uses CIF. Your destination country's rate is the one that counts.

Q: What happens if I use the wrong HS code?

You can be fined, your goods can be held at the border, or you can pay too much duty. If customs finds the error later, they can bill you for the difference plus penalties. When in doubt, ask a customs broker or request a binding ruling from your customs agency.

Q: Why did my duty come out as zero?

Three possible reasons: A free trade agreement covers your route. Your shipment is under the country's de minimis limit. The product itself has a 0% duty rate, like laptops or books entering the United States. Check the notice box above the results table to see which one applied.

Q: Do I still pay VAT or GST if duty is zero?

Usually yes. Duty and import tax are separate charges. A laptop can be 0% duty in the UK but still owe 20% VAT on the customs value. 2 Some goods also have a reduced or zero rate, such as most food and children's clothes in the UK. 2 A low-value limit can waive the tax part in some countries.

Q: Can I split one shipment into smaller ones to stay under de minimis?

Do not do this. Customs can add up items that arrive at the same time and treat them as one shipment, even when you bought them separately. Declaring a lower value to avoid charges can lead to seized goods or prosecution. Ship one order as one shipment.

Q: What proof do I need to get a free trade agreement rate?

You need proof the goods were really made in that country. This is usually a certificate of origin or a signed origin statement on the invoice. Rules of origin also set how much of the product must be made locally. Without proof, customs charges the normal MFN rate.

Q: My goods were shipped from Singapore but made in China. Which one do I pick?

Pick China . Origin means where the goods were made or last changed in a big way, not where they were stored or transhipped. Picking the wrong one can miss Section 301 tariffs and give you a false low estimate.

Q: Should I use FOB or CIF?

Use what your destination country requires, not what you prefer. FOB: United States, Canada, Australia. CIF: EU countries, United Kingdom, Japan. The help icon next to the setting lists the main ones. CIF gives a bigger duty base, so duty is higher.

Q: What is the difference between an HS code and an HTS code?

The first 6 digits are the HS code and are the same worldwide. Countries add 2 to 4 more digits for their own use, which makes the HTS code (US) or commodity code (UK/EU). This tool accepts 6 to 10 digits and matches to the closest heading it knows.

Customs Duty Calculator

Introduction

When you buy goods from another country, you often have to pay extra money at the border. This extra money is called customs duty, and you may also owe import VAT, GST, or sales tax. These costs can add a lot to your final bill, and many people are surprised by them.

This Customs Duty Calculator shows you what you will pay before your goods ship. Pick where the goods come from, where they are going, and what they are. The tool suggests an HS code (the number customs uses to sort products), applies an estimated duty rate, and adds the main import taxes. You get an estimated total landed cost.

The calculator also checks for free trade agreements. If a deal exists between the two countries, your duty rate may drop to zero. It checks de minimis limits too, which are value levels below which small shipments skip duty and tax. It flags extra charges like Section 301 tariffs, excise tax, and anti-dumping duties.

You can add more than one product, switch between FOB and CIF valuation, pick from more than 140 currencies, and compare two sourcing options side by side. Every step of the math is shown, so you can see exactly how each number was found. Save your results as a PDF or CSV to share with your team or your customs broker.

How to use our Customs Duty Calculator

Tell us where your goods are going, where they were made, what they are, and what they cost. The calculator then shows your import duty, taxes, total import charges, and full landed cost, with a step-by-step breakdown.

Destination Country: Pick the country your goods are shipped to. This sets the duty rates, VAT or GST rate, and de minimis limit. Use the filter box to find a country fast.

Canadian Province / Territory: This box only shows if you pick Canada. Choose the province so the tool adds the right PST, HST, QST, or GST-only amount.

Country of Origin: Pick the country where the goods were made, not where they shipped from. The tool checks for a free trade agreement and lowers your duty rate if one applies.

Describe Your Product: Type what you are importing, like "leather shoes" or "wireless earbuds". Pick the best HS code match from the list shown.

Manual HS Code: If you already know your HS or HTS code, switch to this tab and type it in. Use 6 digits for an HS code or 8 to 10 digits for a country code.

Currency: Choose the currency on your commercial invoice. The tool converts it to the destination country's currency for you, and you can check live conversions with our Currency Calculator.

Declared Customs Value: Enter the invoice value of the goods only. Leave out shipping and insurance here.

Valuation Basis: Pick FOB for goods value only, or CIF to add freight and insurance to the duty base. The US leaves the cost of international shipping and insurance out of the value.⁷ Canada deducts transportation and insurance costs from the point of direct shipment.⁴ Australia generally uses the free on board (FOB) value, which leaves out overseas transport and insurance.⁵ The EU adds the cost of transport and insurance up to the point where goods enter the EU.⁸ The UK adds delivery costs up to the UK border.⁹ Japan adds the cost of transport and insurance to the port of import.¹⁰

Shipping Cost: Enter what you pay to move the goods to the destination country. Under CIF it goes into the duty base, and it is part of the landed cost either way.

Insurance Cost: Enter the cost to insure the shipment. It is treated the same way as the shipping cost.

Number of Units: Enter how many items are in the shipment. This gives you the duty and landed cost per unit.

Exchange Rate Override: Leave this blank to use our built-in rate. Enter your own rate if your customs broker or bank uses a different one.

Add Another Product: Click this to add more line items with their own HS code, value, and units. Freight and insurance are split across all items by value.

Scenario B (Country of Origin, Declared Value, and Valuation Basis): Set these to test a second option, like buying from a different country. Click Compare to see both landed costs side by side.

Click Calculate Import Duty & Taxes to see your results. You can then download a PDF report or a CSV file of the full breakdown.

What Are Customs Duties and Import Taxes?

Customs duty is a tax a country charges when goods cross its border. When your shipment arrives, customs officers check what the goods are, where they were made, and how much they are worth. Then they charge duty, plus taxes like VAT or GST. In most cases you must pay these charges before customs releases your goods.

HS Codes: The Product ID Number

Every product has an HS code (Harmonized System code). It is a 6-digit number used by almost every country in the world. Many countries add more digits to make an 8 or 10-digit HTS code. The code tells customs exactly what your item is, and that code sets your duty rate. A cotton t-shirt and a laptop have very different codes and very different rates. Picking the wrong code can mean fines, delays, or paying too much.

Customs Value: FOB vs CIF

Duty is charged on a value, not just the price tag. There are two common ways to build that value:

FOB (Free On Board): only the price of the goods. The United States, Canada and Australia use this.
CIF (Cost, Insurance, Freight): the goods plus shipping plus insurance. The EU, the UK and Japan use this.

CIF gives a bigger base, so the same shipment can cost more in duty in a CIF country.

Country of Origin and Trade Deals

Origin means where the goods were made, not where they were shipped from. This matters a lot. Many countries have free trade agreements that lower or remove duty on goods traded between the members. To use a lower rate, you need proof of origin, such as a certificate or a supplier statement. Without proof, customs charges the normal MFN rate (Most Favoured Nation), which is the standard rate a country charges other WTO members.

Import VAT, GST and Sales Tax

Most countries also charge a consumption tax at the border. It goes by different names: VAT in Europe, GST in Canada and Australia, IGST in India, Consumption Tax in Japan. This tax is usually charged on the customs value plus the duty, so it stacks on top, and you can use the VAT Calculator to model European rates. The United States does not charge federal VAT at the border. Canada adds a federal GST plus a provincial part (PST, QST or HST) depending on the province.¹

De Minimis: Small Shipments

Many countries let low-value shipments in duty-free or tax-free. This limit is called de minimis. It is different everywhere. Australia's is high, the EU no longer waives duty on small parcels, and Canada's is low. From July 1, 2026 until July 1, 2028, the EU charges a flat customs duty of €3 for each type of product in parcels worth €150 or less sold to consumers.¹⁴ If your shipment is under the limit, you may pay nothing. If it is one dollar over, the full charges can apply.

Extra Tariffs You Might Not Expect

Section 301 tariffs: extra US duties on many Chinese-made goods, mostly 7.5% or 25%.⁶ The 2024 review raised the rate on semiconductors to 50% in 2025 and on electric vehicles to 100% in 2024.³
2026 Section 301 country tariffs: since July 24, 2026, the US adds 10% or 12.5% to goods from many origins, depending on the country.¹¹ For goods of the EU and Taiwan, this tariff only tops the normal duty up to 10%, and for Japan, Korea and Switzerland up to 12.5%, so goods whose normal duty is already that high pay none of it.¹¹ Goods under the Section 232 tariffs, such as steel, aluminum, copper, cars and car parts, and wood products, are exempt, and so are goods of Canada and Mexico that enter duty-free under USMCA.⁶
Anti-dumping and countervailing duties: special duties on goods sold too cheaply or unfairly helped by a government.
Excise tax: extra tax on alcohol, tobacco and fuel. This calculator does not add it to the totals.

Landed Cost

Landed cost is the true total: the goods, the freight, the insurance, the duty, and all the taxes. This is the number you should use when setting your prices or checking your margins. Run the result through our Margin Calculator to set a selling price. Two suppliers with the same quote can have very different landed costs if one is in a country with a trade deal and the other is not.

Tips to Pay Less

Check if a trade agreement covers your route, and keep origin paperwork ready.
Use the correct HS code, since small wording changes can move a product to a lower rate.
Compare suppliers in different countries before you order, and factor in production and transit time.
Ship on the right terms so you know who pays the duty, and load containers efficiently.
Keep clear invoices showing goods, freight and insurance separately.
If you resell online, remember platform fees stack on top of duty.

Rates, thresholds and exchange rates change often. Estimates are a planning guide, not a customs ruling. For large or complex shipments, talk to a licensed customs broker.

Formulas used

Customs value (CIF or FOB basis, converted to destination currency)

CV = (G + S_{\text{freight}} + I_{\text{ins}}) \times FX, \qquad FX = \frac{FX_{\text{dest}}}{FX_{\text{invoice}}}

Preferential duty rate under a trade agreement

r_{\text{applied}} = r_{\text{MFN}} \times f_{\text{FTA}}

Per-line duty base (freight and insurance allocated pro-rata by value)

B_i = v_i \times FX + (S_{\text{freight}} + I_{\text{ins}}) \times FX \times \frac{v_i}{\sum_j v_j}

Customs duty and US Section 301 tariffs (EU parcels of €150 or less pay a flat €3 per tariff code instead of D)

D = \sum_i B_i \times \frac{r_{\text{applied},i}}{100}, \quad T_{301} = \sum_i B_i \times \frac{r_{301,i}}{100}, \quad T_{\text{country}} = \sum_i B_i \times \frac{r_{\text{country},i}}{100}

Import VAT / GST (and Canadian provincial component) on the duty-inclusive base (F_out, the freight and insurance left out of CV, is added only in Australia and New Zealand)

\text{Base}_{\text{tax}} = CV + D + T_{301} + T_{\text{country}} + F_{\text{out}}, \qquad VAT = \text{Base}_{\text{tax}} \times \frac{r_{\text{tax}}}{100}, \qquad PST = \text{Base}_{\text{tax}} \times \frac{r_{\text{prov}}}{100}

Total import charges and total landed cost (F_out is the freight and insurance left out of CV under FOB)

C_{\text{total}} = D + T_{301} + T_{\text{country}} + VAT + PST, \qquad L = CV + F_{\text{out}} + C_{\text{total}}

Effective duty rate and charges as a percentage of goods value

r_{\text{eff}} = \frac{D}{CV} \times 100, \qquad \%_{\text{charges}} = \frac{C_{\text{total}}}{G \times FX} \times 100

De minimis test (customs value in USD, with separate duty and tax limits, not applied to alcohol or tobacco)

CV_{USD} = \frac{G + S_{\text{freight}} + I_{\text{ins}}}{FX_{\text{invoice}}}, \qquad CV_{USD} < T_{\text{duty}} \Rightarrow r_{\text{applied}} = 0, \qquad CV_{USD} < T_{\text{tax}} \Rightarrow r_{\text{tax}} = 0

Frequently asked questions

Who pays the customs duty, me or my supplier?

It depends on your shipping terms (Incoterms).

DDP (Delivered Duty Paid): the seller pays duty and tax.
DAP or FOB: you, the buyer, pay at the border.

Most small imports are DAP, so the buyer gets the bill from the courier or broker. Always check your contract before you order.

Why is my duty rate different from what my supplier told me?

Common reasons:

Your supplier quoted their export country's rate, not your import rate.
They used a different HS code.
They did not include extra tariffs like Section 301.
They quoted FOB when your country uses CIF.

Your destination country's rate is the one that counts.

What happens if I use the wrong HS code?

You can be fined, your goods can be held at the border, or you can pay too much duty. If customs finds the error later, they can bill you for the difference plus penalties. When in doubt, ask a customs broker or request a binding ruling from your customs agency.

Why did my duty come out as zero?

Three possible reasons:

A free trade agreement covers your route.
Your shipment is under the country's de minimis limit.
The product itself has a 0% duty rate, like laptops or books entering the United States.

Check the notice box above the results table to see which one applied.

Do I still pay VAT or GST if duty is zero?

Usually yes. Duty and import tax are separate charges. A laptop can be 0% duty in the UK but still owe 20% VAT on the customs value.² Some goods also have a reduced or zero rate, such as most food and children's clothes in the UK.² A low-value limit can waive the tax part in some countries.

Can I split one shipment into smaller ones to stay under de minimis?

Do not do this. Customs can add up items that arrive at the same time and treat them as one shipment, even when you bought them separately. Declaring a lower value to avoid charges can lead to seized goods or prosecution. Ship one order as one shipment.

What proof do I need to get a free trade agreement rate?

You need proof the goods were really made in that country. This is usually a certificate of origin or a signed origin statement on the invoice. Rules of origin also set how much of the product must be made locally. Without proof, customs charges the normal MFN rate.

My goods were shipped from Singapore but made in China. Which one do I pick?

Pick China. Origin means where the goods were made or last changed in a big way, not where they were stored or transhipped. Picking the wrong one can miss Section 301 tariffs and give you a false low estimate.

Should I use FOB or CIF?

Use what your destination country requires, not what you prefer.

FOB: United States, Canada, Australia.
CIF: EU countries, United Kingdom, Japan.

The help icon next to the setting lists the main ones. CIF gives a bigger duty base, so duty is higher.

What is the difference between an HS code and an HTS code?

The first 6 digits are the HS code and are the same worldwide. Countries add 2 to 4 more digits for their own use, which makes the HTS code (US) or commodity code (UK/EU). This tool accepts 6 to 10 digits and matches to the closest heading it knows.

Which exchange rate does customs actually use?

Customs uses an official rate, not the live market rate you see at a bank. New Zealand Customs, for example, sets its rates every two weeks, in advance. Our built-in rates are estimates and can differ from it. If your broker gives you their rate, type it into the Exchange Rate Override box for a closer match.

Do I pay import tax on the shipping cost?

In CIF countries, yes. Freight and insurance go into the customs value, so duty and VAT are both charged on them. In FOB countries like the US, freight is left out of the duty base. Australia still adds freight and insurance to the value it charges GST on.¹² New Zealand does the same.¹³

Can I claim back the import VAT I pay?

If you are a VAT-registered business importing for business use, usually yes. You reclaim it on your VAT return, using the import record (in the UK, a C79 certificate or a postponed VAT statement). Buyers who are not VAT-registered cannot reclaim it this way. Customs duty is not part of this claim.

Why is my import tax higher than the country's VAT rate?

Because VAT is charged on the customs value plus duty and other tariffs, not just on your goods value. A 20% VAT rate on top of a 12% duty means your total charges are more than 20% of the invoice price.

How do I compare two suppliers in different countries?

Set up your main order in the top panel. Then in Scenario Comparison, pick the second country and enter that supplier's price. Click Compare. You will see both landed costs side by side, with the difference in cash and percent. A cheaper quote can end up more expensive after duty.

What extra tariffs does the US add on imports?

Two US-only tariffs can be added on top of the normal duty rate.

Section 301: mostly 7.5% or 25% on listed China-made goods.⁶ Electric vehicles pay 100%.³
2026 Section 301 country tariffs: since July 24, 2026, 10% or 12.5% on goods from many origins, China included.¹¹ For goods of the EU, Taiwan, Japan, Korea and Switzerland, it only tops the normal duty up to 10% or 12.5%.¹¹

They stack. A China-made item with a 9% duty and a 25% list tariff also pays the 12.5% country tariff, 46.5% in all.

How does import tax in Canada change by province?

Canada charges 5% federal GST at the border, plus a provincial part in most provinces.¹ Ontario is 13% HST total, Alberta is GST only at 5%, and Quebec adds 9.975% QST.¹ So your province changes the total tax you pay.

What is the difference between MFN and preferential rates?

MFN (Most Favoured Nation) is the standard rate a country charges everyone in the WTO. A preferential rate is the lower rate under a trade deal, often 0%. You only get the preferential rate if you prove origin. The results panel shows both so you can see what the paperwork is worth.

Sources

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