1. Classification: the HS code

Every product is classified under a tariff code, and that code determines the duty rate and whether the goods need permits or conformity approval. Classification follows what the item is and what it is made of — not the marketing name on the invoice. "Spare part" or "equipment" as a description is where disputes begin.

A wrong code is expensive in both directions: overpaying quietly on every shipment, or underpaying and facing a reassessment, penalties and a suspended file.

2. The customs value

Duty is calculated on the value of the goods as delivered to the port — the invoice value together with freight and insurance. This is why Incoterms matter to your tax bill: an EXW purchase and a CIF purchase of the same goods build the customs value differently. Discounts, tooling, royalties and free-of-charge items all have to be handled correctly rather than left off the invoice.

3. Duty, VAT and the rest

On top of the tariff duty, imports carry value added tax — 14% is the standard rate, with specific goods taxed differently or exempt — plus the service and handling charges of the port and the terminal.

Build the full landed cost before you buy: goods + freight + insurance + duty + VAT + terminal and handling + clearance + inland transport. That is the number your pricing should be based on, not the invoice value.

4. Where the surprises come from

• A vague goods description that invites reclassification.
• Freight and insurance left out of the declared value.
• Regulated goods discovered to need conformity approval after arrival.
• Port storage accumulating while a document is fixed.

Know the number before you buy

Ranisy reviews classification and builds a landed-cost estimate before you confirm the purchase order, then clears the shipment against exactly that file. Send us a proforma invoice and you will get the duty and tax picture while the deal can still be changed.