Charges from customs can be complex and full of unfamiliar vocabulary. Below we have broken down common line items you might see in a customs invoice with definitions to help you understand why various costs are applied.

Duties

Duties are tariffs applied to imported goods, often based on the type of product and its country of origin.

• Item duties – Applied to individual products
• Shipment duties – Applied to an entire shipment

Taxes

Taxes are percentage-based charges calculated on the value of goods and typically collected at import to ensure equal treatment between imported and domestically produced goods.

Common types include:

• CT (Consumption Tax) – A broad tax on goods purchased or imported for use in a country
• GST (Goods and Services Tax) – A national sales tax applied uniformly across the country, including imports, common in Canada, Australia and Singapore
• HST (Harmonized Sales Tax) – A combined federal and regional sales tax, common in Canada
• PST (Provincial Sales Tax) – A regional sales tax charged separately from national taxes
• VAT (Value-Added Tax) – A tax applied at each stage of production and sale, including at import, common in the United Kingdom and European Union

Fees

Fees are charges for specific customs-related services. They are meant to cover administrative costs—not to generate revenue or protect domestic industries.

• Advancement Fees (also known as Receiver Fees or Disbursement Fees)

  Charged by a customs broker, freight forwarder, or carrier when they pay duties, taxes, or other charges upfront on behalf of the importer and manage the associated administrative work.

• Collect on Delivery (COD) Fees

  COD fees apply when customs-related charges are collected from the consignee at delivery, rather than being prepaid by the shipper. Typically this covers payment collection and administrative.

  In certain countries there are additional Declaration Charges or Entry Preparation Fees associated with filing the required documentation.

  Another COD-related charge you may see is an Integrated Customs Management System (ICMS) fee, which supports the software platforms used by many countries to manage customs clearance.

Unique Customs Fees in the United States

• Merchandise Processing Fee (MPF)

  A U.S. government fee charged for processing import documentation.

• U.S. Customs Surety Bond

  A financial guarantee required by U.S. Customs and Border Protection (CBP) to ensure compliance with customs laws and payment of duties, taxes, and penalties.

• U.S. Reciprocal Tariffs / IEEPA Measures

  In 2025 the United States imposed broad import duties after declaring a national emergency and invoking the International Emergency Economic Powers Act (IEEPA), allowing the use of emergency economic authority to regulate imports.