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Customs & Compliance

Are Import Duties the Same as Tariffs?

May 20265 min read

The short answer: almost, but not exactly. Tariffs and import duties describe two sides of the same cost — and confusing them can lead to under-declared shipments, customs delays, and surprise invoices. Here's everything you need to know.

The technical difference

A tariff is a government policy — a schedule of rates that a country publishes, assigning a percentage (or specific dollar amount per unit) to each category of imported goods. You'll see these organized by HS code in documents like the US Harmonized Tariff Schedule (HTS) or the EU's Combined Nomenclature (CN).

An import duty is the actual tax payment you make — the dollar amount calculated by applying the tariff rate to the customs value of your specific shipment. So the tariff is the rate; the duty is the money.

Example

You import $10,000 worth of cotton t-shirts (HS 6109.10) from Bangladesh to the US. The MFN tariff rate is 16.5%. Your import duty is $1,650.

The 16.5% is the tariff. The $1,650 is the duty.

Why most people use them interchangeably

In everyday commerce — shipping documents, carrier invoices, customs broker quotes — "duty" and "tariff" are used interchangeably because the tariff rate is the primary input to the duty calculation. When a news headline says "China tariffs hit 25%", they mean the tariff rate went up to 25%, which means the import duty you pay per shipment increases proportionally.

Customs authorities themselves often blur the line. CBP (US Customs and Border Protection) refers to "duties, taxes, and fees" collectively in their entry summaries. That's fine for practical purposes — just know the underlying logic.

Other import charges that aren't technically duties

Your landed cost includes more than just the tariff-based duty. Common additions in the US:

  • Merchandise Processing Fee (MPF)0.3464% of cargo value (min $31.67, max $614.35). Applies to almost all formal entries.
  • Harbor Maintenance Fee (HMF)0.125% of cargo value, charged on ocean freight.
  • Section 301 TariffsAdditional 7.5%–25% on Chinese-origin goods, stacked on top of MFN duty.
  • Anti-Dumping / Countervailing Duties (ADD/CVD)Product- and country-specific surcharges, sometimes 100%+.
  • Section 232 Steel & Aluminium Tariffs25% on steel, 10% on aluminium, regardless of origin.

What is an HS code in shipping?

An HS code (Harmonized System code) is a 6-digit international product classification number that determines which tariff rate applies to your goods. Every country adds 2–4 more digits to create country-specific codes (HTS in the US, TARIC in the EU, CN in the UK after Brexit).

Getting the HS code wrong is the most common reason importers overpay or underpay duty. A single digit error can mean the difference between 0% and 16% duty on a shipment. Customs authorities can also back-audit entries and issue penalty assessments if they find systematic misclassification.

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Use Zentria Flow's AI classifier to get the right HS code for your product — by description or photo — in seconds.

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Practical checklist for Shopify merchants

  • 1Add HS codes to all cross-border product listings — Shopify uses them for Duties & Import Taxes at checkout
  • 2Declare correct customs value (FOB price, not retail price)
  • 3Check if your goods are on Section 301 List 1, 2, 3, or 4A if importing from China
  • 4Use a tariff calculator before committing to pricing on international SKUs
  • 5Check for FTA eligibility — USMCA, CPTPP, and bilateral agreements can reduce or eliminate duty

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