Customs Duties and Import Taxes

Your Guide to International Order Taxes & Fees, Helping You Strategize Effectively.

Guide to Customs Duties and Import Taxes for International Orders

Dear Customer, when you purchase goods from Shenzhen MinghuiLink Silicone Co., Ltd. and ship them to your country/region (outside mainland China), please note that your order may incur additional import duties, taxes, and related customs fees upon arrival at the destination.

1. What are Customs Duties and Import Taxes?

Import Tax: Typically refers to consumption taxes levied by your country/region, commonly in the form of Value Added Tax (VAT) or Goods and Services Tax (GST).

Customs Duty: A tax levied by customs authorities on specific goods (usually based on their HS code).

Simply put, these are various taxes and fees imposed by the customs authorities of your destination country/region on imported goods in accordance with their laws and regulations.

Examples of common tax types:

  • Value Added Tax (VAT): e.g., EU countries, UK, Mexico, Kazakhstan, Belarus, Switzerland, etc.
  • Goods and Services Tax (GST): e.g., Australia, New Zealand, Jersey, etc.
  • Specific taxes: e.g., Norway's VAT on E-Commerce (VOEC).

2. Who Pays These Fees?

According to the internationally recognized the International Commercial Terms (Incoterms 2020® rules)”, which party is responsible for customs duties and import taxes depends on the trade terms agreed upon by the buyer and seller.

In our standard operations, unless explicitly agreed otherwise (see DDP conditions below), these import duties, taxes, and any customs clearance-related fees are borne by you (the buyer/recipient).

The product quotes and calculated shipping costs we provide do not include these additional taxes and fees.

Upon receiving the customs clearance documents we provide, you will need to declare to customs and pay the relevant taxes and fees yourself or by entrusting your customs broker when the goods arrive at the customs of your country/region. Logistics companies (such as DHL, FedEx, UPS, etc.) may notify you that the goods have arrived at customs awaiting clearance and may proceed with final delivery after you have completed customs clearance and payment of taxes and fees.

As customs policies vary greatly from country to country and are subject to change at any time, we cannot control these charges nor can we accurately predict their specific amounts in advance.

Exception (DDP - Delivered Duty Paid):

If both parties communicate clearly in advance and confirm in writing to use the “Delivered Duty Paid (DDP)” trade term, the relevant taxes, fees, and customs clearance procedures will be handled by us (the seller), and these costs will typically be included in the final quote. This DDP term is effective only after explicit agreement by both parties and is written into the contract or order confirmation. We currently support DDP transactions only for small orders to select countries and upon mutual agreement.

3. How are Taxes and Fees Determined?

The calculation of import duties is generally based on the following formulas:

Total Import Taxes & Fees = Customs Value × (Import Duty Rate + VAT/Consumption Tax Rate + Other Applicable Tax Rates)

Customs Value = Actual Transaction Price of Goods + International Shipping + Insurance + Other Related Costs (specific composition depends on each country's customs regulations)

Typically, the amount of taxes and fees you need to pay depends mainly on the following factors:

Value of Goods: Usually based on the transaction price on the commercial invoice. Customs in some countries/regions may include shipping and insurance costs when calculating the customs value.

HS Code: The Harmonized System code for goods, which determines the applicable customs duty rate.

Country of Origin and Destination: The place of manufacture of the goods and the customs policies and current tax rates of your country/region.

Trade Agreements: If a Free Trade Agreement (FTA) exists between the destination country and the country of origin, there may be reductions in customs duty rates.

4. Customs Clearance and Required Documents

You (the buyer/recipient) are responsible for using the relevant documents to handle the import customs clearance procedures for the goods. During the clearance process, customs authorities may contact you or your appointed customs broker directly to request additional information, documents, or instructions, and you will be required to pay the relevant taxes and fees.

To ensure smooth customs clearance, the following are common key documents:

Commercial Invoice: Contains key information such as buyer and seller details, product description, quantity, unit price, total price, and trade terms. It is the primary basis for customs valuation and taxation.

Bill of Lading / Air Waybill: A Bill of Lading (B/L) for sea freight or an Air Waybill (AWB) for air freight serves as a contract and receipt for the transportation of goods, proving that the goods have been received by the carrier and dispatched. It includes detailed information such as the shipper, consignee, description of goods, and shipping route. Customs authorities rely on this information to verify the legality of the goods and ensure all items are documented and taxed accordingly.

Packing List: Provides a detailed list of the packaged goods, such as the number of items per box, gross weight, net weight, dimensions, etc., to facilitate customs inspection and verification.

Certificate of Origin: If you require this document to enjoy possible tariff preferences (e.g., under applicable FTA terms), please be sure to communicate with us in advance to confirm if it can be provided.

Note: All the above documents are prepared and sent to you by us (the seller) for use by you or your appointed agent at the destination customs.

5. Low-Value Goods and De Minimis Thresholds

Many countries/regions have set certain import de minimis thresholds (minimum value) for low-value goods. If your order value is below this threshold, you may not need to pay customs duties or some taxes. However, please note:

1. This de minimis threshold varies by country/region and standards may change at any time.

2. In some countries/regions, even if the value of goods is below the customs duty de minimis threshold, Value Added Tax (VAT) or Goods and Services Tax (GST) may still be levied (e.g., the EU, UK, Australia have specific VAT/GST collection rules for low-value goods).

3. The table below is only a general reference example of de minimis values for some countries/regions. For specific tax calculations and collection, please be sure to refer to the latest official regulations and final decisions of your local customs authorities:

Country/Region Duty De Minimis Value Tax De Minimis Value
USA USD 800 USD 800
Canada CAD 20 CAD 20
Mexico USD 50 USD 117
Australia AUD 1000 AUD 0 (GST applies)
Hong Kong HKD 0 HKD 0
EU Countries EUR 150 EUR 0 (VAT applies)
UK GBP 135 GBP 0 (VAT applies)
Japan JPY 10,000 JPY 10,000
Switzerland CHF 5 (total tax amount) CHF 5 (total tax amount)

6. What if I Refuse to Pay Customs Duties?

If your package is refused entry by customs or returned due to non-payment of customs duties, taxes, or other reasons, you may be liable for additional costs incurred, including but not limited to original and return shipping fees, storage fees, and any additional fines or taxes imposed by customs at the destination and origin. In such cases, we may be unable to refund the cost of the goods you have paid.

7. Important Notes and Suggestions

To avoid surprises, we strongly recommend that you contact your local customs office or tax authority before placing an order to inquire about detailed information and the latest policies regarding import taxes and fees.

We cannot provide tax advice. This information is for general guidance only. Customs policies vary by country and are subject to change. We cannot offer specific tax advice. If you have questions, please consult a professional tax advisor.

Thank you for your understanding and cooperation!

This page was last updated on May 21, 2025.