Tariff (Import Duty)
A tax charged on goods when they are imported into a country. The importer pays it, and it becomes part of the product's landed cost.
What Is a Tariff?
A tariff, or import duty, is a tax a government charges on goods entering the country. The rate depends on what the product is - its tariff classification - and where it was made.
How It Is Calculated
Duty is generally a percentage of the shipment's customs value, not of your selling price or your full landed cost. A 25% tariff therefore does not raise your landed cost by 25%: freight inside the destination country, prep and other costs are outside the calculation.
What It Means for Amazon Sellers
- Amazon fees do not change - referral and FBA fees are unaffected by duty
- Your cost of goods does - duty is paid on import and belongs in the landed cost of that shipment
- Timing matters - units imported before a rate change keep the old cost; units imported after carry the new one
Tariff rates and exemptions change often and by trade lane, so check the current rate for your product's classification and country of origin with your customs broker before each shipment.
How SellerLegend Helps
SellerLegend's time-period specific COGS entries let you record a new cost from the date a tariff starts to apply, so profit before and after the change is calculated on the right figure.
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