Friday, July 1, 2016

Customs, Import Fees, Duties and Taxes International Shipping

nternet Purchases (excluding alcohol, perfume, tobacco, coffee, electronics, gifts, prohibited or restricted goods)


There are many articles and guides about customs regulations, applicable duties and taxes. Personally I found them either confusing, or difficult to get the main point as of information provided.   

Here I tried to create simple and to the point guide about Internet Purchases sent via Postal Services that will help first of all buyers to be aware of imported goods and duty-free value allowance. Thus, to  avoid additional charges, such as import  fees or taxes. But also sellers to be knowledgeable about duties on goods they are exporting.   
 

               Importing Goods from Overseas using Postal / International Courier Services to:

 
Canada. You don’t have to pay duty or taxes on the item with declared value  $20 CAD (about $18 US) or less. If the item is worth more than $20 CAD, you must pay the applicable duty, GST or HST, and any PST on the item’s full value.
Items that do not qualify for the $20 CAD exemption include the following:
  • tobacco;
  • books;
  • periodicals;
  • magazines;
  • alcoholic beverages; and
  • goods ordered through a Canadian post office box (PO Box) or a Canadian intermediary.
To process goods imported as mail that are subject to duty and/or tax, Canada Post charges the recipient $9.95 CAD handling fees. All amounts must be paid at the time of delivery. If the item is duty free and tax exempt (goods with declared value equal or less than $20 CAD or under NAFTA - goods made in USA, Canada or Mexico), no amount is charged.

USA. Packages with declared value is under $200 US will generally be cleared without any additional paperwork prepared by Customs and Border Protection (CBP).

Australia. Goods with a value at or below $1000 AUD (about $890 US, depending on a current exchange rate) that arrive by post do not require a Self-Assessed Clearance (SAC) Declaration and generally, there is no requirement to pay duty and Goods and Services Tax (GST) on imported goods valued at or below $1000 AUD.

New Zealand. Customs does not collect duty and GST where the total revenue payable on any one importation is less than $60 NZ (about $50 US).
 
European Union (EU). There is no import duties/taxes on deliveries with a total value not exceeding € 22 (about $30 US). Goods with a value lower or equal €150 (about $200 US) may be imported from outside the EU with no payment of Customs Duty. However, if imported item is more than € 22 VAT will apply (the lowest standard rate of VAT throughout the EU is 15%). 
 
Customs Union of Belarus, Kazakhstan and Russia.
Business use.
 If the value of goods (including transportation costs) does not exceed or equal € 200 (about $280 US), a simplified customs clearance procedure may apply, that does not require any additional documents.   
Personal use. If the value of goods does not exceed or equal € 1000 (about $1390 US) and the total weight is not more than 68 lbs, no custom duty will apply (if goods are sent within 1 calendar month to 1 recipient located in Belarus, Kazakhstan or Russia).  If the value of goods exceeds € 1000 customs duties, taxes are paid at the single rate of 30% of their customs value, but no less than 4 EUR per 1 kilogram of weight. 
          
             For items covered under North American Free Trade Agreement (NAFTA) check out my Next Guide

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