A duty is an indirect tax the government imposes on the value of an imported or exported product. A duty assessed on an imported product’s value is referred to as an import duty, while a duty assessed on an exported product is referred to as an export duty. A duty is distinct from other tax forms, such as sales tax, VAT, and excise tax. It is important to note that duty is separate from fees that are assessed against cargo to pay for government services. This includes entry processing fees, reimbursable government services or fines, penalties or liquidated damages for a documentary error, and any violations of customs regulations.