A complete guide to paying customs duties on international shipments!
Payment of customs duties is an unavoidable and important process in international trade. This article details how to pay the customs duties that are incurred when your goods cross borders.
Basic knowledge of customs duties
1. What are customs duties?
It is a tax imposed on the importation of goods in international trade and is set to protect a country's economic policies and markets. They are calculated based on the value of the goods, type, and country of origin, thereby protecting domestic industry and promoting fair competition with foreign products.
2. How Customs Duties are Calculated
They are calculated based on the CIF price (Cost, Insurance, and Freight) of imported goods. It rate varies depending on the type of goods, and specific rates can be found on the official Customs website. The basic customs duty amount is calculated by multiplying the CIF price by the duty rate, to which import consumption tax and other domestic taxes are added.
How to Pay Customs Duties
1. payment through a customs broker
For commercial imports, importers generally use a customs broker to pay duties. The customs broker will process the necessary paperwork with customs and pay the customs duty on behalf of the importer.
2. Payment by mail
In the case of personal imports, postal items may be subject to customs duties, and Japan Post will pay the duties on behalf of the importer and collect them upon delivery. This allows the individual importer to complete the process at home.
3. Real-time payment by direct method*.
*This refers to payment using a real-time account
Using the direct method, taxes are paid in real-time through the NACCS system, and import permission is immediately granted by customs. This greatly speeds up customs clearance procedures
Special Cases and Countermeasures
1. Duty-free and tax-exempt goods
Some imported goods are eligible for duty-free or tax-exempt status if certain conditions are met. This includes certain items such as leather shoes and handbags.
2. Customs Duty Reduction and Exemption System
Customs may grant partial or total exemption from customs duties through the exemption system under the Customs Law. This requires a detailed application and screening process, and prior consultation with the customs office is recommended.
Summary
Payment of customs duties is an important and unavoidable part of international trade. Understanding the various payment methods described in this article will help you achieve efficient import procedures. AnyLogi is a logistics platform that provides total support for domestic and international logistics, and works with Shopify and a variety of other e-commerce carts and malls to seamlessly support your logistics. We also provide forwarding and import/export services using our local delivery network with logistics bases both domestically and internationally. We can provide same-day quotations at the earliest. Please feel free to contact us first.
