When you ship packages internationally, duties and taxes seem like a ‘necessary evil’. The moment an item is shipped across any border, you will have to pay the duties and taxes associated with that country.

Each country imposes their own taxes on shipments for revenue purposes and to maintain importing laws that protect local businesses. The calculations for duty and taxes for shipments are based on a number of factors, including; the Harmonized System (HS) code of the product; product value; trade agreement; and, the country of origin. There are also online tools, such as www.dutycalculator.com, that can estimate what your shipment’s duty and taxes might be.

Unfortunately, there are some shippers who will avoid duties and taxes at any cost. Beware of fraudulent actions that claim to save you money including: under valuing items and shipping under personal names and addresses rather than the business coordinates. Duties and taxes are part of the shipping process for international packages. Acting fraudulently to save a few dollars will eventually result in major consequences. However, there are some circumstances where shipper’s can receive exemptions from duties and taxes.

Understanding Exemptions

Some packages can be exempt from duties if the contents meet certain criteria. For example, in Canada packages worth less than $20 and gifts worth $60 or less are not subject to any duty charges (except for alcohol, cigars and cigarettes). In the United States packages with a value of $200 or less can receive an exemption. The North American Free Trade Agreement (NAFTA) also provides exemptions for goods made in Canada, the United States or Mexico. To qualify for the NAFTA exemption certificates of origin must be presented; however, in Canada the Harmonized Sales Tax (HST) is still applicable in most circumstances.

Reminder :PLX can provide all the documentation needed for your international shipping needs. It’s simple, efficient and cost-effective. Contact us today to get started!