Duties in shipping refer to customs charges or taxes imposed by a government on goods when they are imported into or exported from a country. These duties are applied to shipments crossing borders and are calculated based on factors such as the product's declared value, shipping costs, classification (HS code), country of origin, and applicable trade agreements

. Key points about duties in shipping include:

• Purpose: Duties serve as government revenue and help protect local industries by taxing imported goods

• Calculation: Customs duties are calculated based on the import value of the product, which includes the product price, freight, and insurance fees. The rate can vary widely, often between 0% and 30-40% depending on the product and country

• Responsibility: The party responsible for paying duties depends on the shipping terms (Incoterms). Under Delivered Duty Paid (DDP), the seller pays all duties and taxes upfront. Under Delivered At Place (DAP) or Delivered Duty Unpaid (DDU), the buyer or receiver pays these fees upon delivery

• Customs Broker Role: Carriers often act as customs brokers, handling customs documentation and collecting duties and taxes from the responsible party

• Additional Fees: Besides duties, carriers may charge brokerage and disbursement fees for customs clearance services, which are separate from duties and taxes

In summary, duties are import taxes charged by customs authorities on goods crossing borders, calculated based on the product's value and classification, and paid either by the seller or buyer depending on the shipping agreement. They are a crucial part of international shipping compliance and cost management