Duty is a small line in the landed cost and a large line in the risk, because it is calculated from two things the importer states: the classification and the declared value. Getting either wrong costs more than the duty it saved.
This guide is part of our Charger Export & Market Entry. Read the full topic guide for the decisions that come before and after this step.
Charger import duty: the three inputs
The classification, the declared value and the origin, plus the destination’s own schedule.
The rate follows the classification and the origin, and the amount follows the value. Each of the three is a statement by the importer, so each is a document rather than an estimate, and each is recorded against the product revision.
The three interact: a change of construction can change the classification, a change of supply chain can change the origin, and a change of terms can change what the value includes.
Input 1: the classification
The heading decides the rate family.
Chargers are usually classified within the static converter family, and the exact heading depends on the product’s construction and functions. A wireless pad, a mains adapter, a power bank and a multi-function product can move between headings, and each move changes the duty and the documentation.
Input 2: the declared value
What the value includes decides the amount.
The value reflects the transaction, and depending on the terms it may include freight, insurance or a royalty. Consistency between the invoice, the packing list and the contract is what makes the declaration credible; a value that disagrees with the rest of the entry invites a question.
Input 3: the origin
Where the goods are treated as originating.
The origin rules follow the production of the goods rather than the address of the seller, and a preferential arrangement can change the rate where the rules are met and evidenced. The origin statement is a document, and it is checked when a preference is claimed.
Input 4: the destination’s schedule
The same product can carry a different rate in two markets.
National schedules add their own subdivisions and their own rates, and some markets apply additional measures to particular product categories. Confirming the position per destination is what prevents a rate assumed from an earlier shipment.
Input 5: the terms
Where the value starts and stops.
The delivery term decides which costs sit in the value and which sit with the buyer, and it therefore changes the duty base. Comparing two quotations on different terms without adjusting the duty produces a difference that belongs to the terms rather than to the supplier.
| Input | What it decides | Evidence | Common mistake |
|---|---|---|---|
| Classification | The rate family | A confirmed code | A code reused without checking |
| Value | The amount | Invoice and contract terms | A value inconsistent with the entry |
| Origin | The rate where a preference applies | An origin statement | A preference claimed without evidence |
| Destination schedule | The local subdivision | The national tariff | A rate extended from another market |
| Delivery term | What the value contains | The terms of sale | Comparing unadjusted quotations |
Where duty belongs in the cost model
One line, and it follows the value rather than the unit price.
Duty is calculated on the declared value, so it changes with the terms and with any addition to the invoice. In a landed cost model it sits between the goods and the inland costs, and it is one of the few lines that a change of packaging does not move.
Which changes move the figure
Four changes, and three are documentation.
A change of construction or box contents; a change of supply chain that affects origin; a change of delivery terms; and a change of classification following any of the first three. Each is recorded against the product revision so the next shipment starts from a confirmed position.
Keeping the duty position current
Three records, and each is short.
The confirmed classification per destination; the origin statement with its evidence; and the terms of sale applied to the invoice. With those three, a duty figure can be reproduced rather than remembered, and a new market starts from a documented position.
How the duty base is built
Duty is calculated on a value, and the value is built from agreed elements rather than from the invoice total. The goods value, the freight and the insurance are added according to the destination’s rules, and the term decides which of them the buyer has already paid.
That is why two quotations on different terms are not comparable until the base is aligned. A delivered price includes the freight and the insurance and a factory price does not, so the duty differs even where the product and the classification are identical.
The second element is the rate itself, which follows the classification and the origin. A preference changes the rate rather than the base, and it is claimed with an origin statement and the records behind it.
A programme that models the base and the rate separately can see which of the two a change has moved, which is what makes a landed cost comparison repeatable.
FAQ
Is duty the same in every country?
No. The rate follows the classification and the origin, and national schedules add their own subdivisions, so the position is confirmed per destination. Confirm the position per destination, because the schedule is national and the subdivisions differ even where the heading is the same. The rate also depends on the origin of the goods, and a trade preference changes it rather than the classification, so the two are checked separately.
Does the delivery term change the duty?
It can, because the term decides which costs are included in the value on which duty is calculated. Two quotations on different terms are not comparable until the duty base is aligned. Align the base before comparing, because the term decides which costs are already inside the value on which the duty is calculated. State the term on the quotation so the base can be reconstructed.
Can a lower duty be claimed by choosing a code?
The code describes the product, and choosing it for the duty is a misclassification. The position is confirmed from the product and recorded with its revision. The code describes the product, and the position is confirmed from the construction and recorded with its revision rather than chosen for the rate. Record the reasoning with the classification, so a later change is assessed against it rather than decided again.
What evidence supports a preferential rate?
An origin statement and the records behind it, showing that the goods meet the origin rules. A preference claimed without that evidence is a question waiting to be asked. Keep the origin records with the shipment, because a preference claimed without the supporting evidence becomes a question during clearance rather than at the quotation stage. Keep the origin statement with the invoice and the packing list.
Next step
Send the product, the box contents, the supply chain and the destination markets to Wecent Group through the contact page. The reply provides the classification inputs, the documents needed for the entry and the records that support the duty position. Related reading: OEM and ODM charger manufacturing, charger manufacturing services and charger quality control. External references: ICC Incoterms rules, International Trade Centre Trade Map, US FCC Part 15 rules, EU CE marking rules, IEC standards and UL standards and certification.