There are no escaping taxes; even by simply shipping some goods and packages, duties and taxes will always be there. Duties and taxes play important roles in shipping. International carriers will always subject all shipments to these fees, and it is important that as a regular shipper you should be aware of these and that you should understand the nature of these fees. Other than duties and taxes, other ‘fees’ that make the lives of shippers and consumers hard include the port handling fees and other custom charges that may be asked by regulatory shipping companies & agencies. All these costs and taxes make up the whole total charges for shipping. International shipping should also push shippers like you to understand customs charges and how these charges are computed. If shippers like you can easily understand the nature and how these fees are computed then this kind of arrangement can help save time and money.
International Shipping Services offered:
- Shipping “Boxes Only” Service
- Part Load (Not a full shipping container)
- Dedicated Shipping Container (20ft or 40ft)
- UK Packing Service
- Part Pack – (Just fragile items)
- Export Wrap
- Crate Building (Artwork, Fragile Items)
- Shipping Cars, Motorbikes, Boats
What are duties and taxes?
All shipments and packages that pass through international waters and borders are always subjected to the assessment and checking of possible duties and taxes. And the amount of these duties and taxes is dependent on the current laws and regulations of the importing country. Duties and taxes are not there to add a burden to the person or entity that ships the goods and packages. These associated fees and costs are there as well in order to allow host government to generate revenue and other earnings. And the imposition of duties and taxes can also help the host government protect its local businesses from other local businesses and other foreign competitors. Simply put, the imposition of duties and taxes has many roles to play and should not be considered as a negative thing. The most common practice is that the duties and the taxes should be paid by just before these are leased from the Office of the Customs. There are a number of factors that shape the overall amount of duty and tax that should be paid which can make a difference between cheap shipping and expensive shipping:
The value of the product;
Existing trade agreements;
The country or region of origin;
How the products will be used, or for what intent and;
Harmonized System Code.
The officials of the Customs are the ones that determine the amount of duties and taxes to be levied against the shipment. And their final take will depend on the information and other pertinent data that have been indicated on the way bill, the Commercial Invoice and other pertinent documents in shipping. International shippers should also be aware of the Value Added Tax and the Goods and Services Tax or called the GST. Consider the VAT as a general consumption tax that is levied on the shipment. This tax assumes a different name in some shipment destinations include New Zealand and Canada where this is known as the Goods and Services Tax. Tax rates vary from destination to destination, and these rates can be checked online. For example, if you would like to have a feel of the rates in the European Union, a check with the European Commission Taxation and Customs Union site will prove helpful.