Import duty is calculated as customs value × duty rate. The duty rate comes from your product’s HS code and its country of origin. The customs value depends on where you import: the UK and EU include freight and insurance to the border (CIF), while the US and Australia generally use the value without international freight (FOB). Import VAT or GST is then charged on top in most countries, but not in the US.
Want the number for your own shipment? Use the free landed cost calculator for the US, UK, EU or Australia.
Key facts
- Duty = customs value × duty rate.
- UK and EU: customs value is CIF (goods + freight + insurance to the border).
- US, Australia and Canada: customs value is broadly FOB (goods without international freight).
- Import VAT/GST: UK 20%, EU 17–27% depending on the country, Australia 10%. The US has no import VAT.
- US extras: Merchandise Processing Fee 0.3464% and Harbor Maintenance Fee 0.125% for sea cargo, plus any extra tariffs.
Step 1: Find the duty rate
Look up the full HS code for your product in the tariff of the country you are importing into. See how to find the right HS code. The rate may be lower if a trade agreement applies and you have proof of origin from the supplier.
Step 2: Work out the customs value
| Country | Customs value basis | Includes |
|---|---|---|
| UK | CIF | Goods price, freight and insurance to the UK border |
| EU | CIF | Goods price, freight and insurance to the EU border |
| US | Transaction value (FOB) | Goods price; international freight and insurance excluded if shown separately |
| Australia | FOB | Goods price at the port of export |
| Canada | FOB | Goods price at the point of direct shipment |
Some costs must be added if you paid them separately, such as packing, commissions or royalties linked to the goods.
Step 3: Add import VAT or GST
- UK: 20% VAT on customs value + duty
- EU: the country’s VAT rate on customs value + duty (and transport to the final destination in the EU)
- Australia: 10% GST on customs value + duty + international freight and insurance
- US: no VAT, but fees and extra tariffs (below)
UK example
Goods cost £10,000. Freight and insurance to the UK are £1,200. Duty rate 4%.
| Item | Calculation | Amount |
|---|---|---|
| Customs value (CIF) | £10,000 + £1,200 | £11,200 |
| Duty | £11,200 × 4% | £448 |
| Import VAT | (£11,200 + £448) × 20% | £2,329.60 |
| Total paid at import | £2,777.60 |
VAT-registered UK businesses can usually reclaim the import VAT, for example through postponed VAT accounting. See how to import goods into the UK.
US example (goods from China, October 2026)
Goods cost USD 10,000 FOB. Normal (MFN) duty 4%. The product is on Section 301 List 1–3 (25%) and is also subject to the 12.5% Section 301 tariff introduced in July 2026.
| Item | Calculation | Amount |
|---|---|---|
| MFN duty | USD 10,000 × 4% | USD 400 |
| Section 301 (Lists 1–3) | USD 10,000 × 25% | USD 2,500 |
| Section 301 (July 2026) | USD 10,000 × 12.5% | USD 1,250 |
| Merchandise Processing Fee | USD 10,000 × 0.3464% | USD 34.64 |
| Harbor Maintenance Fee | USD 10,000 × 0.125% | USD 12.50 |
| Total | USD 4,197.14 |
US tariffs on Chinese goods changed several times in 2025 and 2026. In February 2026 the Supreme Court struck down the IEEPA tariffs, and refunds are being processed for affected entries. Check your exact code with a licensed customs broker before you order.
What about small shipments?
- US: the USD 800 de minimis exemption is suspended, so low-value shipments now pay duty. The law removes it permanently from 1 July 2027.
- EU: since 1 July 2026, the €150 duty exemption is gone. Low-value e-commerce parcels pay a flat €3 per item category until standard duty rates apply in 2028.
- UK: goods up to £135 pay no customs duty, and VAT is charged by the seller at checkout. The government has confirmed this relief will be repealed, expected by 2028.
- Australia: goods up to AUD 1,000 pay no duty at the border, and GST is collected by the seller.
What to do next
- Find the correct HS code and duty rate in the official tariff of your import country.
- Check whether a trade agreement lowers the rate, and ask the supplier for proof of origin if so.
- Work out the customs value on the right basis (CIF or FOB) for that country.
- Add VAT or GST and any extra tariffs to get your full landed cost.
- Confirm with your customs broker before ordering, especially for US imports from China.
Common mistakes
- Calculating duty on the product price alone in a CIF country
- Forgetting VAT or GST when pricing products
- Assuming small shipments are still duty-free in the US or EU
- Missing extra tariffs that apply only to certain countries of origin
Related questions
- What is an HS code and how do I find the right one?
- What documents do I need to import goods into the US?
- How do I make sure my China freight quote has no hidden charges?
Sources: GOV.UK: paying VAT and duties on imports, PwC: EU abolishes the €150 threshold, KPMG: UK confirms repeal of low value import relief, Thompson Hine: CBP de minimis suspension, China Briefing: Supreme Court tariff ruling, JIEYI: US tariffs on Chinese goods, October 2026, ABF: import declarations. Rates are examples, not advice for your product. Last reviewed October 2026.