What's Happening?
Import duty is a tax levied on imported goods to protect domestic industries, generate government revenue, and regulate product inflow. Accurate calculation of import duty is crucial for cost estimation and compliance. The process involves identifying
the HS Code for products, determining duty rates, and calculating customs value, which includes product cost, shipping, and insurance.
Why It's Important?
For U.S. businesses involved in international trade, understanding how to calculate import duty is vital for budgeting and compliance. Accurate duty calculation helps avoid penalties and unexpected expenses, ensuring competitive pricing and market strategy optimization. Import duties influence the cost structure of imported goods, affecting consumer prices and business profitability.
What's Next?
Businesses should leverage tools and resources to ensure accurate duty calculations and explore duty exemptions under trade agreements. Staying informed about changes in duty rates and customs regulations is essential for effective import management.
