Preferential Duty
Category: Customs
Definition (plain English)
A reduced or zero customs duty rate available when goods meet the origin and documentation rules of a trade agreement or preference scheme.
Why it matters commercially
Preference can materially improve landed cost, but a weak claim can lead to post-clearance duty recovery, penalties, and corrected customer pricing.
Example
A buyer kept the standard duty rate in the quote until the supplier proved the product met the origin rule and could issue acceptable evidence.
Common mistake
Building margin around a preferential rate before confirming HS code, origin rule, supplier records, and certificate requirements.
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Landed Cost
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