Assisted Import

What You Need to Know About Safely Shipping Internationally

How Do Taxes Work?

When shipping internationally, shipments are subject to the customs regulations of the destination country and may incur duties and taxes. These charges are calculated based on the type of item and its declared value.

Taxes in each country depend on factors such as:

Local VAT (Value-Added Tax) or sales tax regulations.

The category of the item (e.g., electronics, clothing, etc.).

The declared value of the goods.

The tax threshold (the minimum value at which taxes apply) and tax rate vary by country. Import duties and taxes are determined by the customs authority of the destination country and are calculated using:

The value of the imported goods.

Any shipping costs included in the declaration.

Key Considerations for International Shipments:

1. Understanding Tax Thresholds

Depending on the destination country, shipments may incur import taxes if the total value of the items exceeds a specific threshold (denominated in USD). Taxes typically range from 3% to 50% of the purchase invoice value.

Example:
If the declared value of an item is USD 100 and the tax-free threshold is USD 50 with a 10% tax rate, the recipient must pay USD 10 in taxes to the destination country's government to receive the package.

2. Completing Preliminary Paperwork

Customs duties are additional charges that vary based on:

The product category (e.g., electronics, textiles).

The declared value of the goods.

Whether items are restricted or prohibited in the destination country.

For restricted products: Submit required documentation (e.g., permits) to the destination country's government agency before or during customs clearance.

For prohibited products: Obtain import permits/licenses from both origin and destination countries, and notify your shipping carrier in advance.

3. Calculating Taxes by Item Category

Every shipped item is classified under a specific category with a corresponding tax rate. To determine duties, use the HS/HTS tariff code (a standardized classification system) that best describes your product.

4. Assisted Import: Ship Globally with Confidence

My Cargo US simplifies international shipping by:

Handling all necessary documentation.

Providing HS/HTS code classification for your items

Offering customs alerts based on product type.

Estimating duties and taxes for your shipments.

Avoid delays and ensure compliance—let us manage the complexities while you focus on growing your business.