Purolator International TradeAssist Zone™

 

International Duties & Taxes and Harmonized Codes Centre

Conducting business globally? Expanding into new markets? It is imperative to consider the effects of duties, taxes and other customs charges when determining your costs to do business. Customs charges and applicable duties and taxes will affect the price your customers are willing to pay. Landed Costs is very important and understanding upfront what they might be will help in determining successful expansion of a product or product line in a country oversees

When shipping international (including the U.S.) almost all shipments are subject to the assessment of duties and taxes imposed by the importing country's government.

Why Duties and taxes are imposed?

Duties and taxes are generally imposed to generate revenue and/or protect local industries against foreign competition. Customs will not release goods until duties and taxes are paid in full. Information provided on the air waybill, the Commercial Invoice and other relevant documents are used by customs officials to assess duties and taxes. Duty and tax on a shipment is typically based on the following:

  1. Trade Agreements
  2. What the intended use of the product
  3. Classification as per the products Harmonized System (HS) Code
  4. The overall value of the Product
  5. Trade agreements
  6. Original country of manufacture


Accurate Description Is at the Heart of Duties and Taxes Calculations

Duties and taxes, and other customs fees required to be paid are typically driven by the content of the shipment. Having a proper and accurate description are not only required for duty and tax assessment but also essential for timely customs clearance. Providing a consistent and detailed description on all shipping documents will help reduce customs delays. Typically tariff tables are based on primarily on three factors. It is imperative that all three factors are clearly communicated in your commodity description:

  1. What is the commodity?
  2. What is the commodity made from?
  3. What is the commodity intended use?
When writing a commodity description it is very important to be very specific. "Ball Joints for Ford Taurus (1997) " is better than "automobile tools."

Poor description: "Car Parts" Good description: "4 Ball Joints for Ford Taurus (1997)"

If available please include the product's Harmonized System (HS) code will further help customs in the destination country assess your shipment and move it through the customs clearance process more quickly.