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Home / Glossary / Duty

Importing/Incoterms

Duty

Customs duty charged on imported goods (separate from VAT rules).

Definition

Duty is a customs charge on imported goods based on classification (HS code), origin and value rules. It feeds landed cost. VAT/GST treatment is separate and jurisdiction-specific — this glossary does not give tax advice.

Worked example

A consignment valued for customs at £10,000 with a 4% duty rate adds £400 duty before VAT calculations your broker performs under local rules.

Why it matters for replenishment

Wrong HS codes or Incoterms valuation create surprise bills and delayed clearance — which extend lead time.

Guides & calculators

Educational overview of common shipping terms including Incoterms® 2020 concepts. Not legal, customs or tax advice. Incoterms® is a trademark of the International Chamber of Commerce (ICC). Confirm the exact rule and named place in your contract, and speak to your freight forwarder or adviser for live shipments.

Related terms

Common questions

Is duty the same as VAT?

No. Duty is customs duty; VAT/GST is a tax with its own rules.

Who pays under DAP vs DDP?

Under DAP the buyer typically pays import duty; under DDP the seller is responsible for clearing and paying as agreed.

Can preference origin reduce duty?

Sometimes, with valid proofs. Ask your broker — do not guess from the invoice alone.

Is duty the same everywhere?

The idea is shared, but formulas and marketplace rules differ. Use the definition on this page for ecommerce replenishment.

Do I need software to track duty?

A spreadsheet works for a few SKUs. Once you have many suppliers or channels, a replenishment tool keeps the numbers current.

Does OmniRestock change my live stock?

Not unless you switch Stock write or Purchase orders on for a connection. Drafts stay drafts until you confirm.

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