How do I know if I'll have to pay customs duties on an item I buy?

laksh_76
Community Member

Lets say, if i buy a product from Japan to India

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How do I know if I'll have to pay customs duties on an item I buy?


@laksh_76 wrote:

Lets say, if i buy a product from Japan to India


Best to check the India government's websites for costs.

 

Duty and taxes are based on item cost + shipping cost.

Depending on the item type, duty can vary widely. 21%-50% for a lot of stuff.

Plus India VAT of 28%

https://www.easyship.com/countries/shipping-to-india

 

A more detailed India site: https://www.indiantradeportal.in/

 

-..-

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How do I know if I'll have to pay customs duties on an item I buy?

I'm mostly a buyer and from U.S. sellers.

 

I'd like to know the answer to that question myself.

 

I've been buying a few items and it's often hit and miss when I get dinged with customs charges.

 

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How do I know if I'll have to pay customs duties on an item I buy?

Canada customs can choose to charge tax and/or duty on packages valued at C$20 or more.  If the seller is sending directly to you using usps it is hit and miss whether you will be charged although in the past it seemed that first class packages I received would not be assessed while Priority packages would be. But not everyone has had the same experience.

 

If a package is sent via courier rather than the mail, you will definitely be charged tax /duty for packages over $20.

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How do I know if I'll have to pay customs duties on an item I buy?

@mis76can 

And then there is the new NAFTA, which has been signed but may still not be accepted by Parliament and Congress.

As I remember it, our duty free allowance for shipped imports was to rise to $140 but sales taxes would be applicable to any import valued over $60.

 

 If the item were purchased from the USA but made in, say,  Uzbekistan*, there would still be duty.

And there is always sales tax.

 

If the value is under $100 and is not bulky and is shipped by the postal system, there  is a pretty good chance that you will not be charged duty or sales taxes, because CBSA has come to the sensible conclusion that assessing and collecting those import fees costs the taxpayer more than can be collected. Fingers crossed. This is the hit and miss part.

 

If the shipment comes in by courier, the import fees will be charged and the shipper will demand a service fee (customs brokerage fee) which can be $25 or more, to cover their costs.

 

If your seller uses the Global Shipping Program, these fees will be charged on purchase, otherwise you pay on delivery.

 

 

 

*Canada has Free Trade Agreements with some 150 countries** including the European Union***, which complicates things. 

** But not with China. And on further research, we do have a Free Trade Agreement with Uzbekistan. Also Mali. Who knew?

*** And not with the UK, come Brexit, I guess.

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How do I know if I'll have to pay customs duties on an item I buy?


@reallynicestamps wrote:

And then there is the new NAFTA, which has been signed but may still not be accepted by Parliament and Congress.

As I remember it, our duty free allowance for shipped imports was to rise to $140 but sales taxes would be applicable to any import valued over $60.

The New NAFTA -- also called USMCA, T-MEC, CAUSMA/ACEUM depending where you are in North America.

Exemptions of $150 for duty, $40 for sales tax.

 

Trade agreement USA status:

On December 19, 2019, the United States House of Representatives passed the USMCA with bipartisan support by a vote of 385–41. On January 16, 2020, the United States Senate passed the trade agreement by a vote of 89–10. The bill is now awaiting President Trump's signature.

 

https://en.wikipedia.org/wiki/United_States%E2%80%93Mexico%E2%80%93Canada_Agreement

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