Paying custom duty is essential. For example, suppose you are transporting goods across the borders of a country. In that case, you need to pay Customs Duty for the protection of the economy of the country involved in importing and exporting.
You need to pay a certain amount of Customs Duty whether you export bagged packaged goods to another country or import any similar goods to your own country.
There are different custom duties for importing and exporting any goods. But how much Custom Duty do you have to pay when importing any goods from any other country to your county? To answer that question, we need to start at the root of the subject.
In this article, we will discuss what custom duty is? How much Custom Duty do you have to pay for imports and similar questions. So, let’s start with what custom duty is.
What Is Custom Duty?
Customs duty is a tax or tariff imposed upon goods transported across international borders. The duty is charged to serve the economy, residents, and the countries’ occupation. The duty also controls the transfer of restricted goods from one country to another. There are four different types of customs duties.
- Basic custom duty.
- Countervailing duty.
- Anti-dumping duty.
- Safeguard duty.
Basic customs duty is usually the tax imposed on imported goods. The duty is levied on an ad valorem basis.
Countervailing duty is imposed upon subsidized merchandise that the US imports from other countries.
Anti-dumping duty is meant for protecting the local businesses. When some goods are imported at a lower price, the country imposes an anti-dumping duty to ensure the safety of the local businesses in the face of foreign goods.
Safeguard duty is the tax that the US government imposes upon goods that are imported in a large quantity. This tax is meant for securing the local manufacturers.
How Much Custom Duty Do You Need To Pay For Importing?
The customs duty is imposed at a percentage. The total purchase value of any goods determines this percentage; the size, quality, and weight of the purchased goods have no involvement in determining the custom duty percentage. The duty rates for virtually all existing items are available. The Harmonized Tariff System or the HTS offers these custom duties.
As for the customs duty rate in the US, a flat 4% customs duty rate is applicable to goods valued between $800 to $1800. As per the HTS, the customs import duty is determined for different goods. The average custom duty rate in the US can be from 0% to 37.5%
Frequently Asked Questions
Here are some frequently asked questions about import duty that may require your attention. These questions will answer any further queries that you may have about custom duty on importing any goods.
Do I Have To Pay Duty On Items Shipped To The USA?
You need to pay customs duty for any goods or products that you move across the border of the USA. In addition, whenever you import any product from a foreign country to the US, you have to pay the customs duty for that product according to the HTS or Harmonized Tariff System. The Customs Border Protection of the United States enforces these custom rules.
Do I Have To Pay Import Tax On Personal Items?
This question bugs many US citizens who are returning from any foreign country. The import duty for most of the common personal-use items is exempted. But there are certain personal items you still may need to pay import duty to the US government. Generally, this import duty is 4% to 5% of the product’s value.
How Much Can You Bring Into The Us Duty-Free?
For some personal items, the US government allows citizens to import goods free of any import duty. But there is a certain price limit for that. If you carry any merchandise worth the price below $800, you need not pay any customs duty. However, if the imported goods are worth between $800 to $1800, you need to pay a flat 4% of the purchase value.
How Do I Pay Import Tax In The USA?
You must pay your custom duty if you owe any, which needs to be before the conclusion of the CBP processing. You can pay the customs duty through-
- US currency.
- You can also pay via a personal check of the exact amount. CBP may need your identificational proofs like passport and your driving license etc.
- The customs duty is also payable through government checks, money orders, etc.
How To Calculate Import Duty?
In the ICEGATE portal, you can access the custom duty calculator. When you access the portal, you have to enter the CTH code or the HS code of the merchandise you are willing to import. Now you can calculate the import duty by entering the description of thirty characters and selecting the origin country of the goods.
As a responsible citizen, paying import duty for the imported goods to the home country is crucial. As we mentioned above, any item that costs above $800 requires paying import duty. These custom duties safeguard a country’s economy and thereby hold genuine importance for sustaining the safety of local businesses and manufacturers. We hope that you have found your desired answer.