Calculating import duties accurately requires understanding three key elements: the dutiable value, the applicable tariff rate, and any additional taxes such as VAT. Even small errors can lead to significant financial consequences.

Determining Dutiable Value

The dutiable value is typically based on the CIF price, which includes the cost of goods, insurance, and freight. For FOB transactions, freight and insurance costs must be added to arrive at the correct dutiable value. Certain royalties, commissions, and packing costs related to the imported goods must also be included.

Types of Duty Assessment

Most imports are subject to ad valorem duties calculated as a percentage of the dutiable value. Some agricultural and resource products use specific duties based on quantity or weight, while others may face compound duties combining both methods.