All imported shipments are subject to duties and taxes. These charges are assessed by the customs authorities in the destination country and are levied against the value of the shipment. The rate of duty may also be influenced by any or all of following:
- Value of the goods
- Country of manufacture
- Trade agreements
- The Harmonized System Code (HS Code)
- Reason for export
In addition to duties, taxes may also be assessed on goods entering a country, as well as on the customs broker’s services for clearing the goods into the country.
Value Added Taxes (VAT), Goods and Services Tax (GST) and General Consumption Tax (GCT) are some of the taxes that may be assessed against a shipment. The tax type and tax rate will vary from one county to another. It is your responsibility to know and understand the taxes in the country you are shipping to.
Some countries will require that duties and taxes are paid prior to the release of the goods. A customs broker may pay these charges to customs and then invoice them to the paying party along with brokerage fees and disbursement fees.