Author Name: Dion Suen
When you are shipping goods internationally, you need to understand what taxes and duties are. Regardless of whether your shipment is a gift or not, it must go through an import procedure as determined by custom’s law in the destination country. Almost all shipments crossing international borders are subject to duty and tax assessment by the importing country’s government. Customs officials assess duties and taxes based on information provided on the shipping label, waybill, the Commercial Invoice, and other relevant documents.
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How to calculate duties and taxes?
The shipment is cleared through customs based on:
- The origin country
- The value
- Quantity
Dutiable shipments are subject to a custom duty, which is a tariff or tax imposed on goods when transported across international borders. The calculation of duties depends on the taxable value of the shipment. For the purpose of the duties calculation, the classification code of taxable shipments is called the Harmonized System code. The system code has been developed by the World Customs Organization and continues to evolve.
Although there are some free trade zones around the world, customers who ship internationally usually have to pay taxes on shipments. Taxes are usually associated with protectionism, the economic policy of restraining trade between nations. Taxes are usually imposed on imported goods, but sometimes may also imposed on exported goods.
Who pay for the duties and taxes?
Although on FreightAmigo platform, the shipper can pay for duties and taxes, in general, the consignee should be responsible for the payment.
Could I estimate the additional costs of the following customs clearance？
Based on the value and type of imported goods, you can estimate the following costs:
- Customs import duties (percentage of shipment value and shipping cost)
- Local tax
- FreightAmigo Advance Payment surcharge
- Any regulatory charges, if applicable
Each country has its own customs laws and duties for different types of goods, and has its local standards to set the value of the goods. FreightAmigo, like any other international logistics companies, must comply with the local customs legislation. When the shipment arrives, FreightAmigo can help to handle customs clearance procedures for the consignee.
FreightAmigo is an international freight expert, providing you with global customs services, ensuring efficient and smooth customs clearance procedures, allowing you to focus on your business and make trade easier!
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