Dutiable vs Duty-Free Goods
Compare dutiable and duty-free goods for cross-border imports: classification, thresholds, and cost implications.
Duty Classification
Dutiable Goods
Goods subject to customs duties upon import. Duty rate depends on HS code, country of origin, and applicable trade agreements.
Pros
- ✓Clear classification system
- ✓FTA can reduce rates
- ✓Predictable costs
Cons
- ✗Increases landed cost
- ✗Requires HS code classification
- ✗Origin documentation needed
- ✗Can be 0-25%+ of value
Best for: Standard commercial imports
Cost: 0-25%+ of customs value depending on product
Setup: Ongoing per shipment
Duty-Free Goods
Goods exempt from customs duties. Includes goods below de minimis thresholds, certain categories (books, medical), and goods under preferential trade agreements.
Pros
- ✓Lower landed cost
- ✓Simpler customs clearance
- ✓Competitive pricing advantage
Cons
- ✗Thresholds are low in some markets
- ✗Still subject to VAT/GST
- ✗Origin rules must be met
- ✗Limits per shipment
Best for: Low-value shipments, eligible products
Cost: No duty; VAT/GST still applies
Setup: Ongoing per shipment
FAQ
What are the duty-free thresholds for key markets?+
US: $800 de minimis. EU: €150 for customs duty (IOSS for VAT). UK: £135 for customs duty. Australia: AUD 1,000. Note: thresholds apply to goods value, not shipping cost.