The calculation method for international express delivery tariffs is complex and varies depending on factors such as the type of goods, value, and the tax policy of the destination country.
In this article, Weefreight will provide detailed information on some reasonable tax avoidance methods, which we hope will be helpful.
Tariff Calculation Methods
Ad valorem: This is the most common method of levying taxes. The formula is: tariff amount = dutiable value × tariff rate. The dutiable value is generally the sum of the value of the goods before unloading at the import destination, transportation and related costs, and insurance. For example, if a pair of Bluetooth headphones is shipped to France for 3,000 yuan and the shipping cost is 500 yuan, and the French tariff rate for this type of product is 6.5%, then the tariff is (3,000 yuan + 500 yuan) × 6.5% = 227.5 yuan.
Specific tariffs: Customs duties are calculated based on the volume, weight, or quantity of goods. Customs duties = Quantity of goods × Unit tax. This method is common for specific categories of goods, such as agricultural products.
Compound tariffs: Customs duties are calculated using both ad valorem and specific tariffs. Customs duties = Quantity of goods × Specific tariff + Dutiable value × Ad valorem tariff.
VAT and other taxes and fees: In addition to customs duties, some countries may also levy VAT and other taxes and fees. For example, the EU VAT rate is typically 19%-27%. In the UK, parcels valued at over £135 are subject to customs duties in addition to VAT.
Reasonable tax avoidance methods
Reasonable declared value: Developed countries can limit the declared value to approximately 80% of the duty-free threshold. For example, the US duty-free threshold is $650, and the EU’s is €150. For goods valued at $50 or less in emerging markets, the “Commercial Sample” label may be used. However, be careful not to use “Gift,” as this may be considered a high-risk label.
Accurately classify goods: Ensure accurate classification to avoid customs categorizing items with high tax rates. Declare truthfully, but highlight the value of the lower-taxed items. For example, if a package contains clothing and electronics, clothing has a relatively low tax rate. When declaring, provide detailed information such as the material and brand to highlight its value.
Split high-value items: If a package contains high-value items with high tax rates, consider splitting them and mailing them separately. As long as the value of each package is within a reasonable range, you may be able to apply a lower tax rate or enjoy a certain duty-free allowance.
Choose the right shipping method: Postal channels often have certain advantages in international express delivery. Many countries have relatively relaxed customs policies for small postal parcels, setting lower tariff thresholds or providing certain duty-free allowances.
Utilize preferential trade agreements: For example, my country has signed free trade agreements with many countries and regions. Under the Regional Comprehensive Economic Partnership (RCEP) framework, goods originating from member countries can enjoy preferential tariff treatment upon import. As long as a valid certificate of origin is provided, lower tariff rates may be applicable.
(Note: All fees listed above are for reference only. Please refer to your actual invoice for details. Thank you!)
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