If you have a business in Italy that exports or intends to export products abroad, especially to non-EU markets, it’s important to understand what customs duties are and how they work. This article explains how customs duties work: we start with a basic explanation, then look at how to calculate customs duties on exports from Italy, who has to pay them, when and how to pay them, and what happens if you fail to pay customs duties. Lastly, we will analyze customs duties in the most important markets for Italian companies, such as the US, China, and Switzerland.

What’s in this article?

• What are customs duties?
  
• How to calculate customs duties on exports from Italy
  
• Who pays customs duties?
  
• When and how to pay customs duties
  
• What happens if customs duties are not paid
  
• Customs duties in the most important markets for Italian companies
  
• Stripe solutions for managing payments, taxes, and international presence
  

What are customs duties?

When it comes to international trade, one of the first aspects to consider is customs duties. Customs duties are indirect taxes applied to goods crossing a border, both incoming (imports) and, in some cases, outgoing (exports). Their main purpose is to regulate trade flow between different countries, protecting the domestic economy and ensuring tax revenue for the state.

Customs duties can be imposed on both imported and exported products. The application of export duties is quite rare in industrialized countries, but more common in less economically developed countries rich in natural resources, such as many African states, which use export duties to protect their resources and support the development of their national economies. In most cases, however, duties are applied to imported goods with a view to protecting local businesses and production by discouraging the entry of low-cost foreign products.

If you run a business in Italy and export to non-EU countries, it’s important to know that you do not pay export duties: the EU does not levy customs duties on exports of goods to third countries (i.e., countries outside the EU or EEA [European Economic Area]). However, when your products arrive in the country of destination, they are considered imported goods from that country. This means that your foreign customer or distributor will have to pay the import duties required by local customs authorities.

In practice, even if you are not the one paying the tax directly, import duties still affect the final price of your product, the competitiveness of your offer, and, in many cases, the terms and conditions of sale that you can agree upon with your trading partner.

What are duties in layman’s terms?

Duties are taxes paid when goods enter or leave a country. They help regulate international trade, protecting local businesses from foreign competition, and providing the state with tax revenue. Essentially, when a product is imported, it is subject to a customs duty that can increase the final price. The goal is to make domestic production more competitive and control the flow of goods between different markets.

How many and what types of customs duties are there?

From a technical standpoint, there are two main types of customs duties:

• Ad valorem duties: These are calculated as a percentage of the value of the goods (including price, transport, and insurance). This is the most common type, and the percentage varies depending on the product category.

• Specific duties: These are calculated based on a physical quantity, such as weight, volume, or number of units (for example, €10 for each kilogram exported).

In some cases, a mixed duty might also be applied, which combines both criteria.

Customs duties are therefore a key component of the final price: if not managed correctly, they can cause delivery delays, customs blockages, or unexpected costs, with direct repercussions on your company’s reputation and reliability.

Customs charges

In addition to duties, it’s important to take into account other customs charges such as excise duties, consumption taxes, and labeling regulations, which vary depending on the country of destination and the type of product. Some sectors, such as online food sales, are subject to particularly stringent regulations, which require additional certifications and declarations.

How to calculate customs duties on exports from Italy

Calculating customs duties is necessary for anyone exporting goods, because it determines the final price of the product and its competitiveness in foreign markets. The main steps are:

• Determine the customs value
  The customs value represents the basis on which the duty is calculated. It includes the actual price of the goods (as indicated on the commercial invoice), transport and insurance costs to the border of the country of destination, and ancillary costs such as packaging or commissions. For example, if the value of the goods is €10,000 and transport costs €1,000, the customs value will be €11,000.

• Identify the customs code (HS or TARIC)
  Each product has an identification code known as the HS code (Harmonized System code) or, in Europe, the TARIC code (Integrated Community Tariff code). This code allows goods to be classified, the customs duty rate to be determined, and any concessions or restrictions to be checked.

• Apply the type of duty
  Duties can be ad valorem (calculated as a percentage of the customs value), specific (calculated based on weight, volume, or quantity), or mixed (combining both methods).

• Check trade agreements or exemptions
  Many countries have free trade agreements with the EU, which allow for the reduction or elimination of customs duties on products that have European preferential origin (goods that have been entirely produced, processed, or transformed in an EU member state according to criteria established by international trade agreements). To benefit from these concessions, the exporter must prove the preferential origin by presenting a certificate of origin (such as EUR1) or a declaration on the invoice.

• Consider any additional costs
  In addition to duties, other fees could apply, such as import value-added tax (VAT), excise duties on specific products (alcohol, tobacco, fuel), and customs clearance fees or administrative charges.

Useful online tools for calculating customs duties

For ease of calculation and to obtain accurate estimates, you can use several free, official online tools:

• TARIC (European Commission)
  The TARIC database makes it possible to consult customs duty rates and check tariff measures for each non-EU country.

• Access2Markets (European Commission)
  Access2Markets is one of the most comprehensive tools: you can search by HS code, destination country, and product type.

• Italian Customs and Monopolies Agency (ADM)—Online customs tariff
  Official Italian portal for verifying codes and calculating duties and taxes.

• US International Trade Commission—Harmonized Tariff Schedule (HTS)
  This US customs classification system indicates tariffs and restrictive measures applied to goods entering the US.

• WTO Tariff and Trade Data
  This World Trade Organization tool provides access to tariff and import data for more than 150 countries.

Who pays customs duties?

Formally, customs duties are paid by the importer, that is, whoever brings the goods into the country of destination. However, in practical terms, their cost can be spread across the commercial chain and also affect the exporter’s margins and the final price for the customer.

Generally, there are four main situations:

1. The importer transfers the cost to the end customer
   The duty is included in the sales price, leading to higher prices and, in some cases, inflationary effects on the domestic market.

2. The importer absorbs the cost
   To remain competitive, the importer might decide not to raise prices, accepting instead a reduced profit margin.

3. The cost is transferred to the exporter
   If the importer has greater bargaining power, they can ask for a discount on the purchase price equal to the value of the duty, pressuring the exporter (e.g., an Italian company) into lowering its margins in order to remain competitive.

4. The duty is shared
   In the real world, the cost is often shared: Part of it is borne by the importer, part by the exporter, and part by the end customer.

As an Italian exporter, it’s important to know the customs duty rate of the destination country and to precisely define responsibilities in sales contracts. Incoterms (short for International Commercial Terms) regulate the distribution of costs, risks, and responsibilities between the seller and the buyer: for example, with EXW (Ex Works), the customer assumes all customs expenses, whereas with DDP (Delivered Duty Paid), the seller is responsible for duties and charges.

Who pays the export duty?

Generally, export duties are paid by the importer, that is, by the recipient of the goods in the country of destination.

The Italian exporter does not pay any duties on export, because the EU does not apply customs duties on exports to third countries. However, when the goods arrive in the country of destination, the importer or local distributor will pay import duties, which could affect the final price and terms and conditions of sale.

When and how to pay customs duties

Understanding when and how to pay customs duties is key to avoiding delays, customs holds, and additional costs. Although in many cases payment is made in the destination country and not in Italy, as an exporter it’s important to be familiar with the procedures, as they can affect delivery times, customer satisfaction, and loyalty, as well as your company’s reputation.

When are customs duties paid?

When goods cross the border of the country of destination, customs duties become payable. Basically, payment happens when the shipment clears customs, meaning it is authorized to enter the importing country.

In some cases, however, customs regulations provide for special arrangements whereby the immediate payment of duties can be suspended, reduced, or avoided:

• Free zones: Customs areas located within a country but treated, for tax purposes, as foreign territory. Goods brought into a free zone are not subject to duties or VAT until they are placed on the domestic market. Free zones are often used as logistics hubs for the temporary storage or processing of goods.

• Temporary export: Allows goods to be sent abroad for a limited period (e.g., for trade fairs, repairs, or testing) without losing their Community goods status. No duties are payable on their re-importation.

• ATA Carnet: An international customs document that replaces normal customs declarations and allows goods to be temporarily exported to multiple countries without paying duties or depositing guarantees. Also known as a ”Merchandise Passport,” or “Passport for Goods,” the ATA Carnet is valid in over 70 countries and greatly streamlines customs clearance for commercial samples, professional tools, or goods destined for trade shows and events.

How to pay customs duties

Customs duties are paid at the time of customs clearance and can be handled in various ways, depending on the type of shipment and the country of destination. Here are the most common methods:

• Direct payment by the importer: This is the most common method of paying customs duties. The importer pays customs duties directly to the customs authority or to the agent handling the paperwork using one of a variety of payment methods, such as wire transfer, credit card, or digital systems provided by customs.

• Advance payment by the carrier or freight forwarder: In cases where the importer does not directly handle customs formalities, the carrier or customs agent might advance the payment of duties on the importer’s behalf. Subsequently, the cost is charged to the recipient along with handling or delivery fees.

• Electronic payments or customs accounts: Large companies that import regularly often use dedicated accounts or electronic customs payment services to speed up operations.

For exports, even if you’re not the one physically paying the duties, it’s important to know in advance who will pay them (yourself or your customer) and when, because this determines the choice of Incoterm and the correct logistics planning.

What happens if customs duties are not paid

Failure to pay customs duties can have both operational and economic consequences. Indeed, customs authorities in the countries of destination consider payment of duties a requirement for goods to clear customs. Accordingly, failing to pay them or to ensure that the customer pays them on time can lead to delays, financial losses, and damage to your reputation that is difficult to recover from.

Immediate consequences

When customs duties are not paid, the first consequence is that the goods are held at customs. The authorities of the importing country suspend customs clearance until payment is made or any irregularities in the export documents for the goods are resolved. In the event of nonpayment, the goods might:

• Remain in customs warehouses for weeks or months, with additional storage and warehousing costs
  
• Be returned to the sender, with transport costs and a new import-export procedure
  
• In the most serious cases, be confiscated or destroyed, especially if the authorities suspect customs fraud or false declarations regarding the value of the goods
  

Furthermore, failure to pay customs duties could result in penalties, which vary depending on the country and the nature of the violation. In some countries, customs authorities might also suspend or revoke authorization to operate as a regular importer or exporter.

Impacts on business

The economic and reputational ramifications of failing to pay duties can be serious:

• Delivery delays and loss of customers: If goods are held up at customs, delivery times are extended and the customer might decide to cancel the order or turn to another supplier.

• Additional costs: Each day of delay at customs generates storage fees, contractual penalties, and management costs. These amounts can quickly exceed the value of the exported goods themselves.

• Reputational damage: Customs delays or disputes can undermine the trust of business partners and compromise a company’s credibility in the international market.

• Cash flow freeze: If payments from foreign customers are linked to the delivery of goods, a customs hold can temporarily interrupt cash inflow, causing liquidity problems.

Customs duties in the most important markets for Italian companies

Knowing the customs rules and tariffs of the main destination markets is important for those exporting from Italy. Each non-EU country applies its own rates, procedures, and controls, which can have a significant impact on costs, delivery times, and the competitiveness of Italian products.

United States: US duties on Italian products

The US market is one of the most important outlets for Italian companies, yet it’s also a constantly changing environment in terms of customs duties. In recent years, Italian companies exporting to the US have faced average duties of around 2%–6% on their products, with significant variations depending on the type of goods.

With President Trump’s 2025 mandate, tariff measures have been introduced that have raised duties on goods from the EU to 15%. For Italian companies that export to the US, this means having to include an extra margin in their export plan to cover American duties on Italian products, or renegotiating prices or contractual terms. Specifically, sectors such as agrifood, cosmetics, furniture, automotive, fashion and luxury, and biopharmaceuticals are particularly affected. It’s important to regularly check official tariff platforms, such as the US International Trade Commission or the Office of the US Trade Representative bulletins, to stay abreast of changing rates and adapt your business strategy in a timely manner.

China: Customs duties and nontariff barriers

China is one of the most promising markets for Italian companies, yet it’s also one of the most complex in terms of regulations and customs. Chinese customs duties vary according to product category and origin, and can differ significantly across sectors.

In addition to duties, China often applies nontariff barriers, such as sanitary and phytosanitary controls, labeling requirements, mandatory technical certifications, or registration procedures for imported products. These requirements can lengthen customs clearance times and increase administrative costs for exporters.

To operate successfully in this market, it’s important to carefully check the customs codes (HS), the applicable rates, and any restrictions or concessions provided for each type of product. All the latest information on duties and trade agreements between the EU and China can be found on the European Commission’s official Access2Markets portal, which provides comprehensive data on tariffs, documentation, and export requirements.

Switzerland: A neighboring market with its own rules

Although geographically and commercially very close to Italy, Switzerland is not part of the EU and maintains its own customs policy. However, thanks to bilateral agreements between the EU and Switzerland, most products of European origin can enter the country without paying customs duties, provided they are accompanied by an EUR1 certificate of origin or a declaration on the invoice.

Customs checks remain mandatory, however, and might concern the declared value of the goods or the conformity of the labeling, particularly for food, cosmetics, and pharmaceutical products. For Italian companies, Switzerland is therefore a strategic market: it’s nearby, with low or zero tariffs, but requires precision in customs procedures and meticulous documentation to avoid delays or disputes.

Stripe solutions for managing payments, taxes, and international presence

When it comes to exports, it’s just as important to know how to manage international payments, taxation, and legal presence in foreign markets as it is to know about customs duties. In this sense, Stripe solutions can offer tangible support to Italian companies that export or intend to expand abroad.

• Stripe Payments
  Stripe Payments allows you to accept payments from customers around the world securely, rapidly and in over 135 currencies, integrating various local payment methods. It’s ideal for companies that sell online or handle international transactions and want to optimize cash flow without any technical intricacies.

• Stripe Tax
  Stripe Tax streamlines international tax and VAT management by automatically calculating and applying the correct tax rates based on the customer’s country. This is especially useful for exporters that sell in multiple non-EU markets and must comply with different tax regulations.

• Stripe Atlas
  Stripe Atlas is designed for businesses that want to establish a legal or production-based presence in the US. The platform helps you set up a US company, open a bank account, and start operating in compliance with local regulations: a strategic solution for those looking to reduce the impact of US duties or manage production directly in the US.