Import Duty & VAT Calculator

What Is Landed Cost?

Landed cost is the total cost of getting imported goods to their intended destination.

It can include:

• Purchase price of the goods
• International freight
• Freight insurance
• Import duties and taxes
• Customs clearance and handling fees
• Inland transport and other destination charges

Calculating the full landed cost helps businesses understand their real purchasing costs and profit margins.

The Import Duty & VAT Calculator estimates the duty and tax element. It is not a complete landed-cost calculator and may not include all the other costs.

For further guidance, see our UK import duties guide.

What Information Do You Need?

Prepare the following details before using the calculator:

• Country of export
• Country of import
• Product description and category
• HS or commodity code, if known
• Product value and quantity
• Currency
• Shipping cost
• Insurance cost
• Shipment terms, including the relevant CIF or FOB basis where applicable

The calculator provides fields for this information. Enter the values carefully and ensure that shipping and insurance costs are treated consistently with the shipment terms selected.

The country from which goods are shipped is not necessarily their country of origin for customs purposes. Origin can affect duty rates and eligibility for trade agreements, so confirm this separately where relevant.

For a detailed explanation of the input fields, see our guide to using the Import Duty & VAT Calculator.

Why HS Codes Matter

HS codes, also known as commodity or tariff codes, identify goods for customs classification.

They help determine:

• Customs Duty rates
• Import VAT or equivalent tax treatment
• Product restrictions and licensing requirements
• Eligibility for preferential tariffs
• Customs documentation requirements

An incorrect code can produce an inaccurate estimate or lead to additional charges, amended declarations or customs delays.

The international HS system uses six-digit classifications, with importing countries adding further digits where required.

If you are unsure which classification applies, consult our Commodity Codes guide. For UK imports, you can also use the official UK Trade Tariff.

What Is the Difference Between CIF and FOB?

CIF and FOB are trade terms used in international shipping. They help establish which transport costs are included in the commercial price and which party arranges the relevant transport.

CIF — Cost, Insurance and Freight

The seller arranges and pays for freight and the required insurance to the named destination port. These costs are normally reflected in the CIF commercial price.

FOB — Free On Board

The seller delivers the goods on board the vessel at the agreed loading port. The buyer normally arranges and pays for the main sea freight and any insurance it chooses to obtain.

CIF and FOB are formally used for sea and inland-waterway transport. Other Incoterms are normally more appropriate for air and road shipments.

The customs value used to calculate duties is governed by the importing country’s rules, not simply by the Incoterm stated on the invoice.

For example, UK customs valuation generally includes relevant freight and insurance costs to the UK border, while US customs valuation normally excludes separately identifiable international freight and insurance.

Check whether shipping and insurance are already included in the product value entered into the calculator so they are not counted twice.

For more information about trade terms, see our Incoterms 2020 guide.

Can Trade Agreements Reduce Import Duty?

Yes. Some goods qualify for reduced or zero Customs Duty under an applicable free trade agreement.

For example, the UK–EU Trade and Cooperation Agreement allows qualifying goods to benefit from zero tariffs where the relevant rules of origin are satisfied and the required evidence is available.

Goods are not automatically duty-free simply because they are shipped between the UK and EU.

The importing country’s tariff, the product’s actual origin and the applicable agreement must all be considered. Any preferential rate must be supported by the correct origin evidence and declaration.

A zero Customs Duty rate does not automatically remove import VAT or other charges.

Why Shipping and Insurance Costs Matter

Customs authorities often use a value that includes certain freight and insurance costs when assessing duties and taxes.

For UK imports, relevant international transport and insurance costs are generally included in the customs value for duty. Additional expenses may also be included when calculating import VAT.

Other countries apply different customs valuation rules.

Provide accurate shipping and insurance figures and check whether they are already included in the commercial invoice value. Missing or duplicated costs can affect the estimate.

Are There Duty-Free Import Thresholds?

Some countries apply special customs rules to lower-value shipments, but these thresholds and exemptions vary.

Important changes as at October 2026:

• European Union: From 1 July 2026, the previous €150 customs-duty exemption was removed. A temporary €3 duty applies to qualifying low-value distance-sales and postal consignments, according to their distinct tariff classifications, rather than a flat charge on every individual product unit. The interim arrangement is currently scheduled to run until 1 July 2028.
• United Kingdom: The existing £135 low-value Customs Duty relief remains in place for qualifying imports. The UK government plans to remove this relief and introduce new arrangements by October 2028 at the latest.

These rules do not mean that all low-value shipments are automatically exempt from VAT, or that the EU’s temporary €3 arrangement applies to every commercial pallet shipment.

Check the current destination-country rules, shipment type and applicable reliefs before shipping.

What Additional Charges May Apply?

The calculator estimates possible import duties and taxes. Other costs may arise depending on the shipment, goods and destination, including:

• Customs brokerage or clearance fees
• Carrier disbursement or advancement fees
• Anti-dumping, countervailing, safeguard or other additional tariffs
• Excise duty on applicable goods
• Inspection and quarantine charges
• Storage and demurrage
• Port, airport or terminal handling
• Delivery or redelivery costs
• Product-specific government or regulatory fees

Some of these charges may be included in a particular customs calculation, while others are charged separately.

Check your freight quotation and import arrangements to understand what is included.

Who Pays Import Duties and Taxes?

Responsibility normally depends on the agreed Incoterms and the import arrangements.

Under DAP (Delivered at Place), the receiver generally handles import clearance and pays the import duties and taxes.

Under DDP (Delivered Duty Paid), the sender takes responsibility for import clearance and the applicable duties and taxes, subject to the service and local import requirements.

Pallet2Ship’s standard international services commonly operate on a DAP basis, where supported by the selected carrier and route. Do not assume a DDP arrangement is available without confirmation.

Duties and taxes are generally separate from the freight price unless the quotation expressly includes them.

Can Businesses Reclaim Import VAT?

In some countries, VAT-registered businesses may be able to reclaim eligible import VAT, subject to local rules and the appropriate evidence.

For UK imports, eligible VAT-registered businesses may also be able to use postponed VAT accounting, allowing import VAT to be accounted for through their VAT Return rather than paid immediately at importation.

Eligibility and recovery depend on the importer, goods and applicable tax arrangements.

The importer should confirm the correct treatment with its accountant, tax adviser or customs representative.