Import Duty

Import Duty is a tax levied by a country's customs on imported goods and articles. It is an indirect tax, usually paid by the importer at the time of customs clearance. Its purposes include increasing fiscal revenue, protecting domestic industries, and regulating import and export trade. Application scenarios: price terms in foreign trade contracts (such as DDP, DAP), customs declaration, cost accounting, utilization of rules of origin, etc. Precautions: tariff rates vary greatly among different countries, so it is necessary to check the customs tariff schedule of the destination country; the basis for calculating duty is the CIF price (cost, insurance, and freight), but some countries use the FOB price; free trade agreements (such as RCEP) may provide preferential rates, and a certificate of origin is required; additional duties such as anti-dumping duties and countervailing duties also fall within the scope of import duty. Difference from "import VAT": duty is levied once based on the value of the goods, while VAT can be levied at both the import and sales stages and can be deducted; difference from "excise tax": excise tax targets specific goods (such as tobacco, alcohol, and luxury goods), while duty is generally levied. Foreign trade practitioners should accurately calculate duty costs to avoid profit losses caused by underestimation.