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Step-by-step customs duty calculation: Find the correct HS code for your product Identify the duty rate (check the destination country's tariff schedule) Calculate the customs value (CIF or FOB depending on the country) Apply the duty rate: Duty = Customs Value Duty Rate Calculate VAT/GST: Applied to (Customs Value + Duty) Add any applicable broker fees, processing fees, or excise duties Practical example $500 clothing item shipped to Germany: De Minimis Thresholds: The Magic Number by Country The de minimis threshold is the value below which imported goods are exempt from customs duties (and sometimes import taxes)