Customs duty is a tax imposed on goods while transporting borders. The objective of customs duty is to protect the economy, jobs, and environment of each country. The tax will control the flow of goods, especially prohibitive goods. Each article will have a specific duty rate and that will be determined by a few factors including the place, manufacturing, and the manufacturing year. Not everyone understands what International Customs Duties and Taxes are. In this article, we will try to cover a few aspects.
How to Determine Customs Duty
The flat duty rates will be applicable for the dutiable articles not included in the personal exemption. For example, if you get $200 worth alcohol from Europe that includes two liters of liquor. Only one liter will be duty-free under the personal exemption. The other bottle will be dutiable at three percent and you need to pay extra if the Internal Revenue Tax is due.
|Some countries are more lenient on items entering the country than others. If you have an online business, for example, double check what countries you can ship to. For example, if you’re on online jeweler and sell necklaces internationally, you will need to ensure that you’re necklaces are okay to ship anywhere before offering international shipping.
The online jeweler will also have to make sure not to under-declare the items when going through customs. If there will be duty fees, include those when charging your client so there are no surprise costs later on.
Paying Customs Duty
When the duty is due, you need to pay it before the conclusion of CBP processing. You can choose any of the following ways to make the payment.
- U.S currency
- Personal check with the amount drawn from the US bank and payable to Border Protection and U.S. Customs
- Travel check, government check, or money order for the small amounts that do not exceed $50
Now you might have an idea about international customs duties and taxes. You should always inquire about the state regulations to avoid any complication. Lastly, check with countries customs laws you wish to ship to, to ensure your items can be imported with no setbacks.