Customs duty
Also called: import duty · tariff · gümrük vergisi
A tax levied on goods when they cross a customs border, most often on import. It is calculated from the tariff classification, the origin and either the customs value or a physical quantity. Customs duty is distinct from import VAT and excise, which are internal taxes collected at the border.
In practice
Duty is usually a final cost for the importer, unlike import VAT which a registered business can often recover, so it must be built into the product price.
EU
Türkiye
USA
UKRelated terms
- Ad valorem duty
- A duty expressed as a percentage of the customs value, such as 4.5 percent. It is the most common form of tariff in the EU, Türkiye, the UK and the…
- Specific duty
- A duty expressed as a fixed amount per unit of quantity, for example per kilogram, per litre, per head or per pair. Specific duties are frequent for…
- Compound duty
- A duty combining an ad valorem and a specific element, for example a percentage plus an amount per 100 kg, sometimes with a minimum or maximum. EU…
- MFN duty
- The normal duty a WTO member applies to imports from other WTO members unless a preference or special measure applies. In the EU it is called the…
- Customs debt
- The legal obligation to pay import or export duty on specific goods. It arises at the moment a declaration is accepted for release for free…
- Import VAT
- Value added tax charged on goods when they enter a VAT territory, collected by customs together with duty. Its base is normally the customs value…