How to Calculate Import Duties: Customs Tax Guide
Import duty is calculated on the customs value (CIF) at the rate determined by the product's HS code. Within the Turkey-EU Customs Union, industrial goods with A.TR certificate enter at 0% duty. VAT is additional.
Import Duty Basics
Import duty (customs duty) is a tax on goods entering a country, calculated on the customs value at a rate determined by the product's HS code. Most countries use CIF value (Cost + Insurance + Freight) as the customs value base.
Calculation Method
Duty = Customs Value (CIF) x Duty Rate (%)
Example Calculation
| Item | Amount |
|---|---|
| Goods value (FOB) | 10,000 EUR |
| Freight | 800 EUR |
| Insurance | 50 EUR |
| CIF Value | 10,850 EUR |
| Customs Duty (5%) | 542.50 EUR |
| VAT Base (CIF + Duty) | 11,392.50 EUR |
| VAT (20%) | 2,278.50 EUR |
| Total Taxes | 2,821 EUR |
Types of Import Taxes
- Customs duty: Based on HS code, 0-20%+ (industrial average 3-8%)
- VAT: 1-25% depending on country and product
- Excise duty: On specific goods (vehicles, alcohol, tobacco)
- Anti-dumping duty: Extra duty on specific country/product combinations
Duty Exemptions
| Exemption | Condition | Benefit |
|---|---|---|
| A.TR certificate | Turkey-EU industrial goods | 0% customs duty |
| EUR.1 certificate | FTA partner countries | Reduced/0% duty |
| Personal goods | Residence transfer (12+ months abroad) | Duty + VAT exempt |
| De minimis | Low-value shipments (varies by country) | Duty exempt under threshold |
Frequently Asked Questions
How do I find the duty rate for my product?
Check the national customs tariff database using the HS code. EU: TARIC database. Your customs broker can determine the rate.
Is there duty on Turkey-EU shipments?
Industrial goods with A.TR: 0% duty. Agricultural goods: duty applies (EUR.1 may reduce). VAT always applies unless exempt.
Can duty be refunded?
If goods are re-exported, duties paid may be refundable. Inward processing relief provides duty suspension for goods re-exported after processing.
What is customs valuation?
The process of determining CIF value using WTO methods: transaction value (most common), identical goods, similar goods, deductive, computed, or fall-back method.
References
- WTO Customs Valuation Agreement
- EU TARIC Database
- Turkey-EU Customs Union
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