Customs duties explained simply

What are customs duties?

Customs duties are taxes levied on the import or export of goods between countries. They are among the oldest instruments of government trade policy and are primarily intended to achieve two things:

• Generating revenue for the state
• Protecting the domestic economy, for example through protective tariffs on industries that are particularly vulnerable to competition

Customs duties act like a price tag at the border: anyone who wants to import goods into a country may have to pay extra for them. These additional costs make imported products more expensive and are intended to strengthen domestic manufacturers.

 

Who levies customs duties – and how?

Customs duties are levied by customs authorities, for example in Germany by the main customs office. The basis for this is the so-called customs tariff: a huge catalogue that specifies exactly how much customs duty is to be paid for which goods.

Three factors are decisive here:

1. The commodity code (TARIC code): Each commodity has its own code number, which can be used to clearly identify it in the customs tariff.
2. The country of origin of the commodity: Depending on where a product comes from, a different customs duty rate may apply. This is due to trade agreements or political decisions.
3. The customs value: This is usually the price paid by the importer for the goods – including packaging, freight and insurance to the border.

The amount of duty is then calculated as a percentage of this value. Example: With a customs duty rate of 5% and a goods value of €10,000, €500 in customs duty is payable.

 

Types of customs duties

Not all customs duties are the same. The most important types are:

• Ad valorem duties: A percentage of the value of the goods (e.g. 10% duty on the purchase price)
• Specific duties: A fixed amount per unit (e.g. 50 pence per kilogram)
• Combined duties: A combination of ad valorem and specific duties

In addition, there are anti-dumping duties, which are specifically aimed at particularly cheap imports from certain countries.

 

Why customs duties are important for businesses

For companies that trade internationally, customs duties are not a marginal issue, but a real cost factor and risk factor. Anyone importing goods from China, the USA or Turkey, for example, needs to know how high the customs charges will be and whether there are any free trade agreements that provide relief.

In addition, incorrect customs declarations can be expensive. If products are declared incorrectly or valued too low, there is a risk of additional payments, fines or even criminal consequences.

 

Skyline Express – your partner in international trade

As an international logistics company, we support our customers not only with transport, but also with customs management. Our specialists ensure that your goods are cleared through customs correctly – efficiently, legally compliant and transparently.

Whether it’s import declarations, declarations of origin or preference calculations: we keep track of everything for you – so that your supply chain doesn’t come to a standstill.