https://www.easyship.com/blog/how-to-calculate-taxes-duties-when-shipping-internationally
Valuation method:
- CIF
- CIF = FOB Price + Cost of shipping + Cost of insurance
- CIF Duty = CIF x Duty%
- FOB
- FOB Duty = FOB Price x Duty%
Import - export Cost Calculation:
- Custom Value: FOB / CIF = $800
- Import tax
- Sales Tax = $800 x 8% -64
- Import Duty = $800 x 4.4% = 35.2
- Courier Handling Fee(Merchandise Processing Fee) :
- Import by courier of value under $2500 pay MPF of $1
- more on MPF include
- Custom Clearance Fee or Custom Handling Fee for processing import declaration
- Advancement Fee for paying Duty and VAT on behalf of recipient
- Cargo Handling Fee such as loading and unloading goods
- Security such as X-Ray
- Total Import and Duties Formula
- +64 + 35.2 + 1 = 100.20
- Other taxes if necessary
- Excise Duty (Usually levied on alcohol, tobacco and fuel products)
- Consumption tax on luxury goods
- Environment Tax
- Clearance/ Entry Fees
Country De Minimis Rules
- The Duty or Tax Free Amount known as ‘de minimis value’ is a country-specific value below which duty and tax is exempted.
- USA USD 800
- UK GBP 15
- China RMB 50
- Australia AUD 1,000
- Canada USD 15
- Dubai AED 1,000
- Singapore SGD 400
- Indonesia USD 50
- Japan JPY 10,000 (CIF value) or JPY 100 (Duty and consumption tax)
