Our glossary simplifies common industry terms in freight and logistics into clear, easy-to-understand explanations.
Customs Duty (Tariff) is a tax levied by a country on imported and exported goods, used to protect domestic industries and regulate trade. Tariffs are typically calculated based on the importing country's tariff (HS code) and the dutiable value (on a CIF or FOB basis, for example), and may be accompanied by additional taxes (such as VAT and consumption tax). When formulating international quotes and logistics plans, companies must estimate customs duties in advance and accurately declare them on commercial invoices to avoid customs complaints of under- or mis-declaration. By effectively utilizing certificates of origin or free trade agreements (FTAs), companies can secure tax reductions, lower overall import costs, and shorten customs clearance times.
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