Duty VS Tariff : Understanding The Key Differences
Many importers use Duty vs Tariff interchangeably, but they are not the same. Understanding the difference helps you read customs cost breakdowns correctly.
What Is a Duty? A duty is a tax imposed on goods based on their classification and value under the Harmonized System (HS code). It is part of the standard import cost.
What Is a Tariff? A tariff is an additional trade policy measure. It is often used by the government to control imports, protect local industries, or respond to trade disputes. Example: Section 301 tariffs on Chinese goods.
Key Difference Duty is routine and applies to almost every import. Tariff is situational and may or may not apply depending on trade agreements or political actions.
Duty vs tariff becomes especially important when calculating your true landed cost, because tariffs can drastically change pricing.
