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Who Pays Export Duties? A Guide for Shippers on Trade Compliance

Contents hide
1 Leveraging Your Control Tower for Duty Management
1.1 Dive Into Our Blog
2 Gain full visibility of your end to end supply chain
3 Why Compliance Matters in Logistics: Control Tower Guide
4 Licensed Customs Brokers: Strategic Trade Advisors
5 Tariff on US Products 2026: Preparing for Trade Shifts
6 Are Tariffs Based on Country of Origin? Shippers Guide

The world of international trade is governed by a complex web of duties, tariffs, and taxes. A common point of confusion for businesses engaged in cross-border logistics is determining who pays export duties—the exporter, the importer, or someone else?

Understanding these responsibilities is crucial for accurate cost forecasting, smooth customs clearance, and maintaining compliance. For shippers, knowing your role is essential to avoiding unexpected delays and charges.

At CargoTrans Inc., we provide reliable, efficient logistics, and we equip our clients with the visibility tools needed to navigate these complexities, ensuring your supply chain remains optimized from end to end.

Explore Captain

Understanding the Fundamentals: Export vs. Import Duties

To answer the core question, we must first distinguish between the two primary types of trade taxes:

  1. Export Duties (Rare but Relevant)
  • Definition: A tax or levy imposed by a country’s government on goods leaving its territory.
  • Purpose: Typically used to restrict the outflow of certain natural resources or goods to ensure sufficient domestic supply, or as a revenue source on monopolistic goods.
  • Payer: Generally paid by the exporter (the seller in the exporting country), as the tax is levied at the point of exit.
  1. Import Duties (The Most Common Tax)
  • Definition: A tax imposed by the importing country’s government on goods entering its territory. These are the tariffs most commonly discussed in international trade.
  • Purpose: To protect domestic industries, retaliate against unfair trade practices, or generate government revenue.
  • Payer: Generally paid by the importer (the buyer in the importing country).

Who Pays Duties: Importer or Exporter? The Incoterms Deciding Factor

While the fundamental rules exist, the practical answer to who pays duties importer or exporter hinges entirely on the Incoterms (International Commercial Terms) agreed upon in the sales contract.

Incoterms define the division of costs and risks between the seller (exporter) and the buyer (importer).

  • Incoterm Rule

  • FOB, EXW, FCA (Departure)

  • CFR, CIF, CPT, CIP (Main Carriage Paid)
  • DAP, DPU (Arrival)

  • DDP (Delivered Duty Paid)

  • Responsibility for Import Duties/Taxes

  • Importer (Buyer)

  • Importer (Buyer)

  • Importer (Buyer)

  • Exporter (Seller)

  • Who Pays Duty on Exported Goods (If Applicable)

  • Exporter (Seller) or Buyer, depending on contract

  • Exporter (Seller)

  • Exporter (Seller)

  • Exporter (Seller)

The Critical Need for Transparency: Managing Tariff Costs

Regardless of whether you are the importer or the exporter, a lack of clarity on duties and tariffs leads to risks:

  • Customs Delays: Unpaid or misclassified duties halt shipments.
  • Unexpected Costs: Surprises on the final bill erode profit margins.
  • Compliance Penalties: Failure to report accurately can result in fines.

This is where visibility and proactive tools become invaluable for shippers.

Leveraging Your Control Tower for Duty Management

As a CargoTrans Inc. client, you gain strategic advantage through our digital tools integrated with your freight forwarding service:

  1. Captain Control Tower Dashboard: Our end-to-end visibility platform gives shippers a clear, centralized dashboard for tracking every shipment. While its primary focus is movement visibility, it provides the essential context needed for duty management. Proactive alerts regarding arrival windows give you ample time to prepare the necessary documentation and funds for duties.
  2. Captain Tariff Tracker: This specialized tool provides key insight supply chain solutions by allowing you to:
    • Research Applicable Tariffs: Get an initial understanding of the duties likely to be applied based on the Harmonized System (HS) code.
    • Forecast Landed Costs: Better predict the total cost of goods, factoring in potential duties and taxes, crucial for DDP shipments.
    • Stay Ahead of Changes: Monitor current and pending tariff updates, addressing the issue of who pays export duties or import duties when regulations shift.

By having clear, real-time data on your shipments and the associated tariffs at your fingertips, you move from reactive confusion to proactive compliance.

Dive Into Our Blog

End to End Supply Chain Process

Gain full visibility of your end to end supply chain

Technology
Learn why trade compliance is critical for logistics and how Control Tower dashboard ensures real-time visibility, alerts, and automation to keep shipments compliant.
February 10, 2026
https://cargotransinc.com/wp-content/uploads/2026/02/supply-chain-process-scaled.jpg 1440 2560 Oriol F5 https://cargotransinc.com/wp-content/uploads/2025/06/CargoTrans-Logo-Color-300x104.png Oriol F52026-02-10 15:21:412026-02-10 15:21:42Gain full visibility of your end to end supply chain
Why Compliance Matters in Logistics

Why Compliance Matters in Logistics: Control Tower Guide

Technology
Learn why trade compliance is critical for logistics and how Control Tower dashboard ensures real-time visibility, alerts, and automation to keep shipments compliant.
February 9, 2026
https://cargotransinc.com/wp-content/uploads/2025/02/Logistics-4-2000x1250-1.png 1250 2000 Oriol F5 https://cargotransinc.com/wp-content/uploads/2025/06/CargoTrans-Logo-Color-300x104.png Oriol F52026-02-09 15:26:212026-02-09 15:27:13Why Compliance Matters in Logistics: Control Tower Guide

Licensed Customs Brokers: Strategic Trade Advisors

Technology
Licensed customs brokers evolved from filers to strategic advisors helping importers navigate tariffs, compliance risks, and origin rules with proactive guidance.
February 7, 2026
https://cargotransinc.com/wp-content/uploads/2026/02/licensed-customs-brokers-scaled.jpg 1707 2560 Oriol F5 https://cargotransinc.com/wp-content/uploads/2025/06/CargoTrans-Logo-Color-300x104.png Oriol F52026-02-07 10:08:202026-02-20 02:20:10Licensed Customs Brokers: Strategic Trade Advisors

Tariff on US Products 2026: Preparing for Trade Shifts

Technology
Prepare for potential tariffs on US products in 2026. Use our Control Tower and Tariff Tracker to forecast costs, manage trade risks, and ensure global
January 21, 2026
https://cargotransinc.com/wp-content/uploads/2026/01/tariff-on-us-products-scaled.jpg 1438 2560 Oriol F5 https://cargotransinc.com/wp-content/uploads/2025/06/CargoTrans-Logo-Color-300x104.png Oriol F52026-01-21 12:19:272026-01-21 12:19:28Tariff on US Products 2026: Preparing for Trade Shifts
Are Tariffs Based on Country of Origin?

Are Tariffs Based on Country of Origin? Shippers Guide

Technology
Master tariff compliance! Discover how Country of Origin determines duties. Use our Control Tower Tariff Tracker to accurately forecast costs and optimize.
January 21, 2026
https://cargotransinc.com/wp-content/uploads/2026/01/are-tariffs-based-on-country-of-origin-scaled.jpg 1438 2560 Oriol F5 https://cargotransinc.com/wp-content/uploads/2025/06/CargoTrans-Logo-Color-300x104.png Oriol F52026-01-21 12:02:092026-01-21 12:12:23Are Tariffs Based on Country of Origin? Shippers Guide
Previous Previous Previous Next Next Next

Take Control of Your Trade Costs

While export duties are primarily the responsibility of the exporter, the larger concern for most shippers is managing import duties (tariffs), which are typically paid by the importer unless shipping under DDP terms.

The ultimate solution lies not just in knowing the rule, but in having the tools to apply it accurately and efficiently. CargoTrans Inc. ensures your logistics are handled reliably, while our Control Tower Dashboard and Tariff Tracker empower you to manage every financial and regulatory detail of your global trade.

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