Duty and tax calculation, explained in plain words
Last updated 2026-10-16
How duty, VAT and excise are calculated, multi-currency, and what the "total payable" on your bill means.
Three kinds of money may be due on an import: duty (the border tax, from the HS code rate), VAT (value-added tax, charged on goods value + duty), and excise (only for special goods like alcohol or tobacco). The declaration computes all three automatically from the line items.
The two ways duty is charged#
- Ad valorem (by value): customs value × duty rate. Example: $10,000 goods × 8% = $800 duty.
- Specific (by quantity): fixed amount per unit. Example: $0.50 per liter of wine.
Multi-currency#
The declaration has one currency (e.g. USD). If the invoice is in another currency, the system converts it with the exchange rate you set — you can type the rate manually or use the automatic rate. The converted value is what duty is calculated on.
"Total payable" on the bill = duty + VAT + excise, itemized line by line. Check the breakdown before you pay the advanced duties.