Import duty is a tax imposed by a government on goods entering the country. It is typically calculated as a percentage of the CIF value (product cost + insurance + freight). Rates vary by product category (HS code) and destination country.

Landed cost is the total cost to get a product from the supplier to your door, including product price, shipping, insurance, import duties, VAT, and any other fees. It is the true cost of importing a product.

What is the difference between customs duty and VAT?

Customs duty is charged specifically because goods are being imported and goes to the government as a trade measure. VAT (Value Added Tax) is a consumption tax applied to the value of goods at each stage of the supply chain, including at the point of import. Both are collected at customs but serve different purposes.

💰 Import Duty Calculator

Q: How is import duty calculated?

Import duty is calculated on the CIF value: (Product Value + Shipping Cost) × Duty Rate %. VAT or sales tax is then applied on top of the CIF value plus duty. The total of duty + VAT + any additional taxes is your total import tax.

Q: What is CIF value in customs?

CIF stands for Cost, Insurance, and Freight. It is the total value of goods including the product purchase price, shipping costs, and insurance. Most countries calculate import duty on the CIF value rather than just the product price.

Q: What is the import duty rate for Pakistan?

Pakistan generally applies a customs duty of around 15% on CIF value for many imported goods, plus 18% sales tax on the duty-inclusive value, plus additional income tax of approximately 3%. Total effective import taxes can reach 35-40% depending on the product category.

Q: Does UAE charge VAT on imports?

Yes, the UAE charges 5% customs duty on most imported goods plus 5% VAT on the CIF value inclusive of duty, for a combined effective rate of around 10% for most product categories.

Q: What is the de minimis threshold?

The de minimis threshold is the minimum value below which imports are exempt from customs duty. Thresholds vary by country — for example, the US previously had a $800 de minimis, while Pakistan has lower thresholds for personal imports. These rules can change, so always verify current thresholds with the destination country's customs authority.

Q: What is an HS code and why does it affect duty?

An HS (Harmonized System) code is a standardized international product classification number. The specific HS code of your product determines the exact duty rate applied — products within the same general category can have significantly different rates depending on their precise classification.

Q: Is this import duty calculator free?

Yes, OG Track's import duty calculator is completely free with no registration required. It covers Pakistan, UAE, Saudi Arabia, USA, UK, Europe, and China.

Estimate customs duty, VAT, and total landed cost for imports into Pakistan, UAE, Saudi Arabia, USA, UK, Europe, and China — instantly and free.

✓ 7 Countries Covered ✓ CIF-Based Calculation ✓ Duty + VAT + Additional Tax ✓ Free & No Signup

Calculate Your Import Duty

Destination Country

HS Code (Optional)

Product Value (USD)

Shipping Cost (USD)

📊 Duty & Tax Summary

What Is Import Duty and How Is It Calculated?

Import duty — also called customs duty or tariff — is a tax that a government collects on goods arriving from another country. Every country has its own schedule of rates, organized by product type using the Harmonized System (HS) classification, and importers are legally required to pay the applicable duty before goods are released by customs.

Understanding import duty matters whether you're a business importing stock, an e-commerce seller calculating landed cost, or an individual ordering something from abroad. Getting the calculation wrong at the planning stage is one of the most common reasons import projects run over budget.

The Import Duty Formula

CIF Value = Product Cost + Shipping Cost + Insurance

Customs Duty = CIF Value × Duty Rate %

VAT / Sales Tax = (CIF Value + Customs Duty) × VAT Rate %

Total Import Tax = Customs Duty + VAT + Any Additional Taxes

Landed Cost = CIF Value + Total Import Tax

The key insight here is that VAT is calculated on top of the duty-inclusive value, not just the product value alone — meaning the effective tax burden compounds rather than adds simply. This is often overlooked when businesses estimate import costs in advance.

What Is CIF Value?

CIF stands for Cost, Insurance, and Freight. It is the standard basis on which most countries calculate import duty. It includes the price you paid for the product, the cost of shipping it to the destination country, and the cost of insuring the shipment in transit. Even if your supplier quotes you on an FOB (Free on Board) basis, you must add shipping and insurance costs to arrive at the correct CIF value for duty calculation purposes.

💡 Practical Example: You import $2,000 worth of phone accessories into Pakistan. Shipping costs $200. CIF = $2,200. Customs duty at 15% = $330. Sales tax at 18% on ($2,200 + $330) = $455.40. Additional tax at 3% = $66. Total import taxes: $851.40. Total landed cost: $3,051.40. That's a 52.6% uplift over the product cost alone.

Import Duty Rates by Country

Duty rates vary significantly by both destination country and product category. The rates below are general averages used in this calculator — actual rates for specific product categories may differ. Always verify the exact rate for your product's HS code with the destination country's customs authority.

Country	Avg. Customs Duty	VAT / Sales Tax	Additional Tax	Notes
🇵🇰 Pakistan	15%	18% Sales Tax	3% Income Tax	Rates vary widely by HS code
🇦🇪 UAE	5%	5% VAT	0%	GCC common external tariff
🇸🇦 Saudi Arabia	5%	15% VAT	0%	VAT raised from 5% to 15% in 2020
🇺🇸 USA	~3.5%	Varies by state	0%	Additional Section 301 tariffs may apply on China-origin goods
🇬🇧 UK	~4%	20% VAT	0%	Post-Brexit UK Global Tariff applies
🇪🇺 Europe	~3%	19-25% VAT	0%	VAT rate varies by EU member state
🇨🇳 China	8%	13% VAT	0%	Most-favored-nation rate for standard imports

Why Pakistan's Import Taxes Feel Higher

Pakistan's effective import tax burden often surprises first-time importers because the 18% sales tax is applied on the CIF value plus customs duty (not just the product value), and then an additional 3% income tax is applied on top. This compounding means that even at a modest 15% customs duty rate, the total effective uplift can reach 35-40% over the product cost, making landed cost planning essential for any business importing into Pakistan.

USA: Additional Section 301 Tariffs on China-Origin Goods

US importers should be aware that goods originating from China may be subject to Section 301 tariffs in addition to standard MFN (Most-Favored-Nation) duty rates, in categories including electronics, machinery, clothing, and many consumer goods. These additional tariffs can range from 7.5% to 25% depending on the product category — significantly above the calculator's general 3.5% estimate. For US-China sourcing specifically, verify current Section 301 rates via the USTR's official tariff list before relying on any estimate.

How to Use This Import Duty Calculator

Select your destination country — where the goods are being imported to.
Enter the HS code (optional) — if you know your product's HS code, include it for reference in the results. If not, use our HS Code Finder first.
Enter the product value in USD — the price you paid your supplier (FOB or EXW value).
Enter the shipping cost — the freight cost to ship to the destination country. This combined with the product value gives the CIF basis for duty calculation.
Click Calculate — you'll see a full breakdown: CIF value, customs duty, VAT, any additional taxes, total import tax, and total landed cost.

Why Landed Cost Matters More Than Product Price

Many importers and Amazon sellers make the mistake of comparing supplier prices without factoring in import duties. A product that looks cheaper from one country can end up costing more after duties than a slightly more expensive product from a country with a preferential trade agreement or lower tariff schedule. Landed cost — not purchase price — is the number that determines profitability.

Common Import Duty Mistakes to Avoid

Calculating duty on product price only — Forgetting to include shipping and insurance costs (CIF basis) understates your duty liability, which can cause a surprise bill at customs.
Using the wrong HS code — A misclassified product can attract a much higher (or lower) duty rate. Incorrect classification is a common audit finding and can result in back-payment plus penalties.
Ignoring de minimis thresholds — Low-value personal imports may be exempt from duty in some countries, but these thresholds vary and are subject to change — don't assume exemption applies to your specific shipment.
Forgetting VAT compounds — VAT is typically applied to the duty-inclusive value, not just the product value. This makes the combined effective rate higher than simply adding the two percentages together.
Not checking Free Trade Agreements — If goods originate in a country that has an FTA with the destination, duty rates may be significantly lower than the standard MFN rate. Always check origin before calculating.

💡 Pro Tip: For business imports, calculate duty for two or three potential source countries side by side before committing to a supplier. The difference in landed cost due to tariff rate differences can easily outweigh a 5-10% difference in supplier pricing.

Frequently Asked Questions — Import Duty

What is import duty?

Import duty is a tax imposed by a government on goods entering the country, calculated as a percentage of the CIF value (cost + insurance + freight) of the imported goods.

How is import duty calculated?

Duty = CIF Value × Duty Rate. VAT is then calculated on (CIF + Duty). Total import tax = Duty + VAT + any additional taxes. Our calculator handles all steps automatically.

What is CIF value in customs?

CIF stands for Cost, Insurance, Freight — the total value of goods including purchase price, shipping cost, and insurance. Most countries assess duty on CIF value rather than the product price alone.

What is landed cost?

Landed cost is the complete cost of receiving imported goods, including product price, shipping, insurance, all duties, and taxes. It's the true cost of importing and the correct basis for pricing decisions.

What is the import duty rate for Pakistan?

Pakistan typically applies ~15% customs duty + 18% sales tax on the duty-inclusive value + ~3% additional income tax. Total effective uplift can reach 35-40% depending on product category.

Does UAE charge VAT on imports?

Yes — the UAE charges 5% customs duty plus 5% VAT on most imported goods, for a combined effective rate of approximately 10.25% on CIF value.

What is the de minimis threshold?

The minimum value below which a country exempts imports from duty. Thresholds vary widely by country and can change — always verify current thresholds before assuming duty-free treatment.

What is an HS code and why does it affect duty?

An HS code is a standardized product classification number. Your product's specific HS code determines its exact duty rate — different codes within the same product category can have significantly different rates.

What's the difference between customs duty and VAT?

Customs duty is a trade-specific import tax. VAT is a consumption tax applied at each point in the supply chain, including import. Both are collected at customs but serve different policy purposes.

Is this import duty calculator free?

Yes — completely free with no registration. Covers Pakistan, UAE, Saudi Arabia, USA, UK, Europe, and China with full duty + VAT + additional tax breakdown.