How are duties and taxes calculated for international shipments?
Duties and taxes are based on the following:
- Product value
- Trade agreements
- Country of manufacture
- Description and end use of the product
- The product's Harmonized System (HS) code
- Country-specific regulations
Duties and taxes are calculated against the value of the shipment's contents declared on the commercial invoice, as well as any insurance costs and a percentage of the transportation cost. This is known as the 'Customs Value'. This value is then multiplied by the duty percentage of the product's HS code.