Import Duties and Taxes in International Shipping
Understanding import duties and taxes is crucial for accurate cost estimation and compliance. This comprehensive guide breaks down the world into key regions, providing an overview of the main duties and taxes you should consider when shipping, importing, or exporting goods internationally.
North America
United States
The U.S. uses the Harmonized Tariff Schedule (HTS) to determine import duties.
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-37.5% | Varies by product category |
| Merchandise Processing Fee | 0.3464% | Min $27.23, Max $528.33 |
| Harbor Maintenance Fee | 0.125% | Applies to ocean shipments |
De Minimis Value: $800 (shipments below this value are generally duty-free)
Canada
Canada uses the Customs Tariff for determining import duties.
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-35% | Varies by product category |
| Goods and Services Tax (GST) | 5% | Applied on duty-paid value |
| Provincial Sales Tax (PST) | 0-10% | Varies by province |
De Minimis Value: CAD 20 for gifts, CAD 40 for commercial shipments
European Union
The EU uses the Common Customs Tariff (CCT) for all member states.
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-17% | Varies by product category |
| Value Added Tax (VAT) | 17-27% | Varies by country |
De Minimis Value: €150 for customs duties, €22 for VAT (note: VAT threshold to be abolished from July 1, 2021)
Asia-Pacific
China
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-270% | Varies widely by product |
| Value Added Tax (VAT) | 13% or 9% | 13% standard, 9% for specific goods |
| Consumption Tax | 1-56% | Applies to luxury goods |
De Minimis Value: CNY 50
Japan
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-30% | Varies by product category |
| Consumption Tax | 10% | Applied on duty-paid value |
De Minimis Value: JPY 10,000
Australia
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-10% | Most goods at 5% |
| Goods and Services Tax (GST) | 10% | Applied on value + duty |
De Minimis Value: AUD 1,000
Latin America
Brazil
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-35% | Varies by product category |
| Industrialized Product Tax (IPI) | 0-300% | Varies widely |
| Merchandise and Service Circulation Tax (ICMS) | 17-25% | Varies by state |
De Minimis Value: USD 50
Mexico
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-20% | Varies by product category |
| Value Added Tax (VAT) | 16% | 8% in border regions |
De Minimis Value: USD 50 for postal shipments, USD 117 for courier shipments
Middle East and North Africa
United Arab Emirates
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-5% | Most goods at 5% |
| Value Added Tax (VAT) | 5% | Applied on duty-paid value |
De Minimis Value: AED 1,000
Egypt
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-60% | Varies by product category |
| Value Added Tax (VAT) | 14% | Applied on duty-paid value |
De Minimis Value: USD 50
Sub-Saharan Africa
South Africa
| Type of Tax/Duty | Rate | Notes |
|---|---|---|
| Import Duty | 0-45% | Varies by product category |
| Value Added Tax (VAT) | 15% | Applied on duty-paid value |
De Minimis Value: ZAR 500
Important Exceptions and Special Considerations
- Free Trade Agreements (FTAs): Many countries have bilateral or multilateral FTAs that reduce or eliminate duties on goods originating from partner countries. For example, the United States-Mexico-Canada Agreement (USMCA) allows for duty-free trade on many goods between these countries.
- Free Zones: Many countries have designated free trade zones where goods can be imported, manufactured, and re-exported without incurring import duties. Examples include:
- Jebel Ali Free Zone in Dubai, UAE
- Shanghai Free Trade Zone in China
- Colón Free Trade Zone in Panama
- Temporary Imports: Many countries allow for temporary duty-free import of goods for specific purposes (e.g., trade shows, samples) under schemes like ATA Carnet.
- Product-Specific Regulations: Certain product categories may have additional regulations or restrictions:
- Electronics often require certification (e.g., CE marking in the EU)
- Food and agricultural products may need phytosanitary certificates
- Pharmaceutical products typically require special licensing
- Anti-Dumping and Countervailing Duties: These are additional duties imposed on specific products from certain countries to protect domestic industries.
- Preferential Tariff Programs: Many developed countries offer reduced or zero duties on imports from developing countries under programs like the Generalized System of Preferences (GSP).
- E-commerce Considerations: With the growth of cross-border e-commerce, many countries are reviewing their de minimis thresholds and implementing specific e-commerce regulations.
If you have any questions, please reach out to our network of trade, tax and compliance consultants below.
All Free Economic Zones on a map
This project displays all special economic zones in an interactive map.
