Import duty is one of the biggest line items in any shipment budget, yet it is often the least understood. Here is a plain-language walkthrough of how it is actually calculated.
Step 1: Classification (HS Code)
Every product has a Harmonized System (HS) code that determines its duty rate. Getting this classification right matters — the wrong code can mean overpaying, or under-paying and facing penalties later.
Step 2: Valuation (CIF)
Duty is calculated on the CIF value — Cost of the goods, Insurance, and Freight — not just the price you paid the supplier. This is a common surprise for first-time importers who budget only on the invoice price.
Step 3: Applying the Tariff Rate
Once the HS code and CIF value are confirmed, the applicable tariff percentage is applied, along with any additional levies (such as the National Automotive Council levy for vehicles, or ECOWAS levy where relevant).
Why this matters before you ship
We calculate your likely duty liability before your cargo leaves origin, not after it arrives, specifically so there are no budget surprises when it is time to clear. If you are planning a shipment and want a duty estimate, send us the product details and we will work it out with you.
