Claim case sharing
Is import duty insurable?
Is import duty insurable?" This is quite a frequently asked question from intermediaries. The answer is "Yes".
In some countries, tariffs are imposed on imported goods. For example, Argentina has imposed a 10% tariff on almost all capital goods while Australia has imposed a 24-34% tariff on textile, clothing, and footwear products. It is suggested to remind your customers to take the import duty into account when taking out insurance for export goods. The duty amount should be clearly stated in the insurance policy. However, the duty is warranted free of claims in the following circumstances:
- In the event of total loss of the cargo concerned or total loss/partial loss of the carrying vessel or craft before arrival at destination unless duty has been prepaid.
- In the event of General Average
- In respect of duty waived by customs authorities at destination on shipment arriving damaged by a peril covered under the policy
- In cases where no duty or landing charges are paid