First of all, our price doesn't include taxes, duties, or VAT. We don't collect any taxes, duties or VAT up front.
We ship out packages by FedEx under DDU/Delivered Duty Unpaid terms and by DHL under DAP/Delivered At Place terms. Under both terms, the buyer (receiver) is responsible for all the duties, taxes, VAT, and clearance fees at the destination customs.
In general, the customs calculate the duties, taxes, or VAT according to the shipment document and commercial invoice that we submit to the package carrier such as FedEX, DHL, UPS.
Sometimes, the package carrier such as FedEx, DHL, UPS collect the taxes, duties, VAT on behalf of the destination customs. They always contact the buyer/ package receiver when it's necessary to collect taxes, duties, VAT.
Duties and taxes are imposed to protect national revenue and safeguard local industry. Almost all shipments crossing international borders are subject to duty and tax assessment, with customs officials basing this on information provided on the commercial invoice and other relevant documents.
Payment to the authorities must be met before the shipments are released from customs. Customs charges are based on:
Product value
Trade agreements (if applicable)
Country of manufacture
Description and end-use of product
The product’s Harmonised System (HS) code
Country-specific regulations
Most countries have a national tax, which is assessed based on the value of the goods and services. While the terminology used in different countries can vary, the principal is the same. In some countries, such as Canada, U.S. Singapore, Australia and New Zealand, this tax is known as the Goods and Services Tax, or GST.
The UK and the European Union (EU) have Value Added Tax (VAT). Businesses that are VAT-registered and fully taxable do not bear the final cost of VAT because it is a tax on consumer expenditure. It can also be known in different countries as IVA, TVA, BTW and AFA, but the principle is the same.