Tariff / Duty

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📖 Detailed Explanation

Tariff/Duty is a tax levied by a sovereign state or separate customs territory on goods and articles entering or leaving its territory, and it is a core component of foreign trade costs. In foreign trade customer management, tariffs directly affect customers' procurement costs, pricing strategies, and willingness to place orders, so salespeople need to understand the tariff policies of different markets. Use cases include: when quoting, it is necessary to clarify whether tariffs are included (such as the difference between DDP and DAP), assist customers in calculating the total import cost, and use free trade agreement (FTA) rules of origin to help customers reduce or exempt tariffs. Notes: tariff rates vary by commodity HS code, country of origin, and trade agreement, and may be adjusted with policy changes; Duty usually refers to an ad valorem tax levied on the value of goods, while Tariff can broadly refer to the tariff system or specific tariff items; the two are often used interchangeably, but Tariff is more macro-level. Unlike value-added tax (VAT), tariffs are levied in a lump sum at the time of customs clearance and are not included in subsequent deductions. In business, it is necessary to confirm with the customer the party responsible for customs clearance to avoid abandoned goods or disputes caused by tariff disagreements.

📝 Examples

1. Our quotation is FOB Shanghai, and the tariff shall be borne by your company. We suggest that you check in advance the import tax rate under HS code 8471.30 so as to calculate the total landed cost. (Note: Clarify the responsibility for tariffs under the trade term and remind the customer to calculate it independently.) 2. Due to the China-ASEAN Free Trade Agreement, you can enjoy zero-tariff treatment for importing this batch of mechanical parts with a FORM E certificate of origin. Please confirm whether your company can provide the corresponding customs clearance documents. (Note: Use the free trade agreement to reduce or exempt tariffs for the customer and increase the probability of closing the deal.)

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