Tariffs and their effect on cross-border shipping

A customs duty (often called a tariff) is a charge a government places on imported goods. It depends on the product’s Harmonized System (HS) code, its country of origin and its declared value.

A tax is a separate charge such as sales tax, VAT or GST, applied to the value of the goods plus, in many countries, the duty and shipping. Excise taxes apply to specific products such as alcohol and tobacco.

A value threshold below which imports enter without duty and with simplified paperwork. Thresholds differ by country and can be withdrawn or lowered. When a threshold is removed, every shipment needs a formal customs entry and may incur duty, tax and a brokerage fee regardless of value.

The importer of record, the person or company legally bringing the goods into the country. Shipping terms decide who that is in practice: with DDP (Delivered Duty Paid) the sender pays before delivery; with DDU/DAP the recipient is billed before the shipment is released.

The Harmonized System is a global product classification. The first six digits are the same everywhere; countries add digits for their own tariff lines. Customs uses the code to set the duty rate, so a wrong code means a wrong rate, delays and possible penalties. Describe products precisely (“men’s 100% cotton knitted sweater”, not “clothing”) and check the code before booking.

Criteria that decide which country a product is “from” for tariff purposes, normally where the last substantial transformation happened, not where it was shipped from. Trade agreements such as USMCA use origin rules to grant reduced rates, usually with a certificate of origin.

Yes. Additional or retaliatory tariffs are often layered on top of the normal duty rate for specific products or countries of origin. A landed-cost calculation should include every applicable line.