Duties and Taxes Explained

Understanding duties and taxes helps avoid surprises at customs.

Types of Charges:

1. Import Duty (Tariff):

   • Tax on imported goods
   • Percentage of declared value
   • Varies by product type (HS code)
   • Some products duty-free (FTAs)

2. VAT/GST/IVA:

   • Value-Added Tax
   • Applied in most countries
   • Usually 10-25% of (value + duty)
   • Mexico: 16% IVA
   • EU: 19-27% VAT
   • UK: 20% VAT

3. Customs Processing Fee:

   • Fixed fee for formal entries
   • USA: 0.3464% (min $27.75, max $528.33)
   • Varies by country

4. Harbor Maintenance Fee (US):

   • 0.125% of value
   • For seaport arrivals (not usually OBC)

De Minimis Values: Countries exempt low-value shipments from duties:

• USA: $800 (highest in world)
• Canada: $20 CAD (very low)
• EU: €150 (duties), €22 (VAT abolished)
• Mexico: $50 USD
• UK: £135

Who Pays?

• Usually the importer (buyer/recipient)
• Can be prepaid by shipper (DDP terms)
• Courier may pay and be reimbursed
• OnFlyGo shows estimated duties

Tax Exemptions:

• Temporary imports (returning)
• Repairs under warranty
• Samples of no commercial value (limited)
• Diplomatic shipments