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Duties are calculated from the declared value of the goods, their classification under a tariff code, and their country of origin, then adjusted by any trade agreement that applies. Taxes and brokerage fees are separate charges that often arrive on the same bill, which is why the total at the door can look larger than the duty rate alone suggests.
This is general information, not tax advice.
First, value: customs starts from what the goods are worth, usually the price paid plus, in many countries, the cost of shipping and insurance to the border. Second, classification: every product fits a tariff code, and the code sets the duty rate for that kind of good. A cotton shirt and a leather jacket sit in different categories with different rates, even at the same price. Third, origin: where the goods were made matters more than where they were bought, because trade agreements give preferential rates to goods made in partner countries.
| Factor | What customs looks at | Example effect |
|---|---|---|
| Declared value | Price paid, sometimes plus shipping and insurance | A higher value means a higher duty amount |
| Tariff classification | The product category code | Different goods carry different percentage rates |
| Country of origin | Where the goods were made | Trade agreements can lower or remove the duty |
| Trade agreement | Whether origin qualifies for preferential treatment | Qualifying goods may enter duty-free |
Duty is a tariff on imported goods. Sales tax or value-added tax is a separate charge, calculated on the value plus duty in many systems, so the two stack. Then there is brokerage: someone has to file the customs entry, and if a courier does it, that service carries a fee. Postal shipments often have a smaller handling fee instead. None of these are the shipping cost you already paid, which is why a parcel can arrive with a bill even when shipping was described as free.
Many countries also set a de minimis threshold: a value below which no duty is charged, and sometimes a separate, higher threshold for tax. Thresholds change, and they differ by country and by whether the parcel arrives by post or courier, so a parcel that sailed through last year can attract charges this year. Do not rely on a threshold you remember; check the current figure for the destination before sending.
By default, the recipient pays. That is the standard term for most consumer parcels: the buyer or gift recipient is the importer of record and owes whatever customs assesses. Sellers can instead choose a delivered-duties-paid arrangement, where the sender covers duty and tax up front so the recipient pays nothing at the door. That option costs the sender more and is not offered by every service, but it removes the most common cause of refused parcels: a recipient who did not expect a bill.
Gifts are not exempt by default. Some countries allow a small gift allowance, but above it, gifts are assessed like any other import. Marking a commercial sale as a gift does not change that, and it can create trouble: customs can reassess the value, hold the parcel, or penalize the sender. Honest declarations are not just good manners; they are what keep the parcel moving.
The final number always belongs to customs. Estimates help the recipient plan, but only the customs assessment is binding, and it can differ if an officer reclassifies the goods or values them differently. Build that uncertainty into your message to the recipient, especially for gifts and sales where a surprise bill can sour the whole exchange.
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