Calculating international express delivery customs duties involves multiple factors, including the value and type of goods, and the import tariff of the destination country.
In this article, Weefreight will provide detailed explanations, which we hope will be helpful.
Tariff Calculation Methods
Ad valorem: This is the most common calculation method. The customs duty amount = Dutiable Value × Duty Rate. The Dutiable Value is typically determined based on the transaction price of the goods, including transportation and related costs, insurance, and other expenses before the goods arrive at the import destination.
Specific: Customs duties are calculated based on units of measurement such as volume, weight, or quantity. The customs duty amount = Quantity × Unit Tax. This method is commonly used for specific categories of goods, such as agricultural products.
Compound: Customs duties are calculated using both ad valorem and specific methods. The customs duty amount = Quantity × Specific Duty + Dutiable Value × Ad valorem Duty.
Selective Tax: When a particular good is subject to both ad valorem and combined tax, the higher rate is applied.
EU: The tariff threshold is €22. VAT rates typically range from 19% to 27%, varying by country. Generally, the tax rate for mobile phone accessories is approximately 6.5%, for clothing, shoes, and hats approximately 8%, and for cosmetics approximately 28%.
UK: Parcels valued up to £135 are subject to only 20% VAT and are exempt from customs duties. For parcels exceeding £135, in addition to VAT, customs duties are also levied, with the specific rate depending on the type of goods.
Japan: The tariff threshold is ¥10,000. The tax rate for mobile phone accessories is 0%, for clothing, shoes, and hats approximately 8.7%, and for cosmetics approximately 22%. Starting in April 2025, Japan will eliminate duty-free shipping and will require consumption tax.
Canada: The customs duty threshold is 20 Canadian dollars. Personal mail items exceeding this amount may be subject to customs duty, with rates varying depending on the type of goods and country of origin. In addition, a 5%-15% Goods and Services Tax (GST) may also apply.
Australia: The tax-free threshold is 1,000 Australian dollars. Any amount above this is subject to 10% GST, and customs duties may also apply at the applicable rate.
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