Duty is the least understood line in a new importer's landed cost — and often a pleasant surprise, because handmade carpets enjoy favourable treatment in several major markets. Here is how the charges are built, and how to find your real number before you order.
The Three Charges at Import
- Customs duty: a percentage of the customs value (typically the goods plus, in many markets, freight and insurance), set by your market's tariff for the HS code.
- Import VAT / GST / sales tax: charged on the duty-inclusive value in most VAT markets — usually recoverable for registered businesses, so treat it as cash flow, not cost.
- Processing and port fees: small fixed charges that matter only on very small shipments.
Why "Handmade" Is a Tariff Advantage
Tariff schedules distinguish construction: hand-knotted rugs (heading 5701) in particular attract low or zero duty in several major markets, and preference schemes for Indian goods can reduce rates further where they apply, supported by the certificate of origin. Machine-made synthetics often face the highest rates in the chapter — one more economic argument for the handmade trade you are entering.
Find Your Number in Ten Minutes
Every major market publishes a free online tariff lookup: search your HS code (start at 5701/5702/5703, refined by fibre) and read the rate for goods of Indian origin. Then confirm with your customs broker, because rates and schemes change — any article that prints a specific percentage is quietly ageing.
Get the Description Right at Source
Your duty outcome is only as good as the invoice description. "Hand-knotted, 100% wool" and "tufted, wool/viscose" are different rates in most schedules — we state construction and fibre precisely on every document. Ask us for the HS heading with your quotation and look up your rate before you commit.