Guide page
How to estimate import duty without pretending the tariff line is the whole story.
A good estimate has four parts: the right customs value, a defensible rate, explicit low-value threshold behavior, and the non-duty costs that still land on the shipment.
Duty is not always charged on the same base that tax is. That is why the calculator keeps those assumptions separate.
Step by step
Use this order when you estimate.
Define the customs value basis
Start by checking whether your commercial reality is closer to FOB, CIF, or another basis. Many errors come from copying a rate onto the wrong declared base.
Get the probable HS code range
If classification is still fuzzy, do not lock the duty rate yet. Build a quick broker brief with material, use, construction, and origin detail first.
Model threshold behavior openly
Some markets waive duty but still collect VAT or shift the collection point. Do not hide that assumption inside one generic checkbox.
Add the admin friction
Brokerage, disbursement, compliance checks, and FX buffer often decide whether a shipment still works, especially on smaller consignments.
Stress-test the file
Run one cleaner scenario and one stressed scenario. If a freight slip or rate dispute breaks the economics, that changes the business decision now.
Capture assumptions with the number
When someone sees the landed total later, they should also see the duty base, rate source, threshold mode, and whether brokerage was included.
Starter threshold map
How the built-in presets think about low-value relief
| Preset | Threshold line used in the toolkit | Default relief treatment | Why it matters |
|---|---|---|---|
| United States | None by default | No automatic relief | The preset assumes broad de minimis treatment is not generally available, so the file is modeled without it. |
| United Kingdom | GBP 135 | Waive duty only | Low-value customs-duty relief can exist while VAT still matters, often with collection-point complexity. |
| EU-like VAT mode | EUR 150 | Waive duty only | The preset assumes VAT still applies, so the model separates duty relief from the tax layer. |
| Custom | User-defined | User-defined | Use this only when you have market-specific or broker-specific instructions the starter presets do not cover. |
Where teams usually miss
Common import-duty estimation mistakes
Treating HS code as settled too early
If the rate changes meaningfully across two plausible headings, the real answer is classification work, not calculator confidence.
Using product value as a stand-in for landed reality
Freight, brokerage, and tax can move the economics more than expected, especially on low-ticket items or urgent shipments.
Pricing from the best case only
A business that prices from the cleanest scenario tends to relearn the same customs lesson every quarter.
Next step
Move from guide to tool
Run the import-duty calculator
Use the tariff-first view when the rate and customs basis are the main questions.
Run the landed-cost calculator
Use the per-unit and total-cost view when you are pricing or replenishing.
Build an HS-code brief
Collect the product facts your broker will need to give you a defensible code range.