How is import duty calculated?

Import duty is calculated as a percentage of the CIF value (Cost + Insurance + Freight) of your shipment. Step 1 — Calculate CIF value: CIF = Product cost + Insurance + Shipping freight Step 2 — Find the duty rate: The duty rate depends on your product's HS code, destination country's tariff schedule, and country of origin (trade agreements may reduce the rate to 0%). Step 3 — Calculate import duty: Import Duty = CIF × Duty Rate % Step 4 — Calculate VAT/GST: VAT = (CIF + Import Duty) × VAT Rate % Step 5 — Calculate landed cost: Landed Cost = CIF + Import Duty + VAT + Other fees (broker, handling, delivery) Example — Laptop shipped to Portugal: - Product value: $1,000 - Shipping: $50, Insurance: $10 - CIF = $1,060 - Duty rate: 0% (ITA agreement for electronics) - Import Duty = $0 - Portuguese IVA: 23% × $1,060 = $243.80 - Landed Cost = $1,303.80 Use our free Duty Calculator for instant estimates on any product and country.