Types of Customs Duties and Tariffs

Most shipments across customs borders are subject to duties, but many people are unfamiliar with what customs duties entail and the types of charges involved.

What is a Customs Duty?

A customs duty is a charge collected by a country’s customs authorities when goods are transported across its customs border. 

The main types of customs charges include:

• customs duty – a general tax on imports;
• excise tax – imposed on specific imported goods, such as tobacco or alcohol, which are considered “excise goods”;
• value added tax (VAT) – applied to goods imported into Ukraine.

Despite the fact that the law contains many nuances regarding the payment of customs duties, let’s focus on the basics. It’s important to know that customs duties don’t always have to be paid. When they are required, payment is made in the national currency, hryvnia and can also be paid separately. 

Customs payments can be made in advance (prepaid). Specific cases for customs duty payment should be reviewed in the Customs Code of Ukraine.

Types of Customs Duties in Ukraine

Several important customs duties in Ukraine include:

• Import Duty: Levied on goods entering Ukraine’s customs territory. Only the Verkhovna Rada (parliament) can adjust these rates.
• Export Duty: Applied to goods exported from Ukraine’s customs territory.
• Seasonal Duty: Temporarily imposed on specific goods for periods between 60 to 120 consecutive days.

In addition, international agreements may impose unique duties, such as:

A special duty is applied as a measure to protect the domestic market from excessive imports. Anti-dumping duty is imposed when goods are imported into Ukraine at below-market prices to prevent dumping. Countervailing duty aims to create equal conditions for domestic and imported goods by offsetting price differences. This type of duty is a form of market protection through protectionism and support for domestic producers.

Additionally, an excise duty is charged separately. This is an indirect tax, ultimately paid by the consumer of the excisable goods, while the producer acts as the tax agent. In other words, this tax is applied upon the purchase of certain goods. Excise duty applies to products such as alcoholic beverages, ethyl alcohol, cigarettes, other tobacco products, petroleum products (like fuel and liquefied gas), electricity, passenger cars, motorcycles, trailers, bodies, cargo vehicles and semi-trailers.

When is a Customs Duty Not Required?

Customs duties generally apply to almost all types of goods, so businesses and legal entities should be prepared to pay. This also includes private individuals who import items like cars or other vehicles, where the import duty can sometimes exceed the vehicle’s cost. 

However, if an individual orders goods from abroad worth less than €150, they are exempt from customs duty. If the value exceeds this limit, VAT is due only on the portion of the shipment’s value that surpasses the threshold.