Customs clearance is the challenging part of the process of international trading. but one of the most important parts is customs charges. Knowing all required customs charges can help you prevent paying fines at customs.
you can also read about required documents you need to present to customs: required documents
Import duty is a tax collected on imports and some exports by a country’s customs authorities and is necessary to be paid before custom clearance. To calculate the import duty, two factors are important:
- Custom duties
- Commercial benefit tax
Import duty = custom charges + commercial benefit tax
The purpose of Customs Duty is to protect each country’s economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.
Custom duties
Any goods for import are required to pay a percentage of the total value of the goods to the customs as custom duty.
Custom duty = 4% of CIF value of goods + customs fees
Customs fee refers to the funds that are paid in exchange for customs services. These customs services are as follows:
License
Laboratory tariffs
Warehousing
Standard and inspection of goods
Bill of lading
Warehouse bill
Shipping
& …
Custom duty tax
Commercial benefit tax is consisting of the percentage of several charges, that need to be paid to the government.
Custom duty tax = Value Added Tax + Red Crescent + municipal tax + …
CIF value
CIF means cost, insurance and freight, which is very practical in the transportation industry and is widely used in customs. CIF means the delivery of goods on the deck of the ship. In this way, all the costs of contracting and insurance are paid by the seller. Also, the seller is obliged to send the goods to the nearest port and then send the goods to the buyer’s chosen destination. in addition to the shipping costs, he also pays goods` insurance.
CIF value = Currency price of goods × customs exchange rates + insurance cost
Having required information about the process of customs clearance and pay attention to it can help you prevent possible mistakes and fines. The specialists of Flamingo Eurasia can help you with the process of customs clearance based on their experience and knowledge, so you won`t face any problem or you don`t have to pay any fines. Flamingo Eurasia can help you experience a good international trade.
You can contact Flamingo Eurasia for more information!