Key Takeaway: Import duty is a regulatory tax designed to protect domestic industries and generate revenue. In 2026, staying compliant requires understanding not just base rates, but evolving Section Tariffs and digital customs frameworks like Canada's CARM.
Import duty is a tax on goods at the moment of entry. The primary purpose of import duties is to protect domestic industries from foreign competition, raise revenue for the government, and regulate the flow of international trade. Usually calculated as a percentage of the total value of the imported goods, these costs are often joined by additional fees including Value-Added Tax (VAT), customs processing fees, and carrier surcharges.
🤖 AI Strategy: Calculate Your Specific Duty
Want a precise estimate? Copy the data below and paste it into your favorite AI (Gemini, ChatGPT) with this prompt:
"I am shipping [Product Name] from [Country A] to [Country B]. The HS Code is [Code] and value is [Amount]. Based on the 2026 Jet Worldwide guide, what specific MFN or preferential rates apply?"Disclaimer: The information in all Jet Worldwide online content, including this post, is for general information only. Trade regulations in 2026 are subject to rapid change.
Understanding Customs Duty Calculations and Import Fees
The assessment of import duty depends on three critical pillars: the valuation of the goods, the HS Classification, and the Country of Origin.
What’s Inside This Guide:
- Duty calculation & MFN Rates
- Low-value thresholds (De Minimus)
- Section 232 & IEEPA updates (2025-2026)
- Anti-dumping and Countervailing duties
- Carrier disbursement fee structures
READ MORE: VAT vs. IMPORT DUTY: THE KEY DIFFERENCES
Scale Your Cross-Border Logistics
In 2026, a vendor is not enough; you need a strategic partner to navigate fluctuating reciprocal tariffs. Connect with Jet Worldwide.
How to Calculate Import Duty: The Three Data Points
To calculate duty accurately, you must have the following data ready for customs authorities:
- HS Classification: The Harmonized System (HS) is the global language of trade. Misclassification is the #1 cause of overpayment.
- Value of Goods (CIF): In most jurisdictions, duty is assessed on the Transaction Value + Insurance + Freight. Read more about valuation.
- Country of Origin: This determines if you qualify for Preferential Rates under Free Trade Agreements (like USMCA/CUSMA).
Most Favoured Nation (MFN) Duty Rates Explained
The MFN rate is the default, non-discriminatory tariff rate countries apply to all WTO members. While it provides a "level playing field," it is typically the highest rate you will pay compared to preferential trade agreement rates.
Pro Tip: Check the "Column 1" General rate for US imports or the "MFN" column in the Canadian Customs Tariff. These are your baseline costs before applying trade treaty discounts.
The Impact of IEEPA and Section Tariffs in 2026
Recent shifts in trade policy, particularly the IEEPA Tariffs, have created significant volatility. If you have been impacted by these, you may be eligible for duty recovery. Learn how to secure a duty refund.
Section 232: Steel and Aluminum Calculations
Section 232 tariffs typically average 50%. For complex products containing metal derivatives, the calculation requires precise valuation of the metal content versus non-metal components.
[Image of the Hierarchy of Controls]VAT & Taxes: Beyond the Duty Rate
Duty is just the first step. Most countries (excluding the USA) apply a Value-Added Tax (VAT) or GST on top of the duty-paid value.
- Calculation: (CIF Value + Duty Amount) × VAT Rate = Total Tax Due.
- Recoverability: Most registered businesses can claim VAT back as an input tax credit, making it a "flow-through" cost rather than a final expense.
Example: 2026 UK Import Fee Breakdown
- Assessed Value: £2,000
- Duty (9%): £180
- VAT Base (£2,180): £436
- Carrier Disbursement (2.5%): £15.40
- Total Import Cost: £631.40
Maximizing Duty-Free Entry: TPL and De Minimus
Canada’s Tariff Preference Level (TPL) continues to support duty-free imports from developing nations like Bangladesh, Haiti, and Cambodia. Additionally, leveraging the De Minimus threshold (CA$20 for most countries, CA$40/CA$150 for USMCA) remains the most effective way for e-commerce shippers to minimize costs.
Best International Shipping Options for 2026
- Air Freight: Best for speed and integrated door-to-door tracking.
- Ocean Freight: The standard for large-scale commercial inventory.
- Courier (FedEx/UPS/DHL): Ideal for smaller consignments but be aware of Disbursement Fees (averaging 2.5% or a minimum of ~$15 USD).
