CUSTOM DUTY EXPLAINED

CUSTOM DUTY EXPLAINED

Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country’s economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

Customer duty is ascertained by multiple factors which includes but not limited to value of shipment, size of shipment, volume of shipment, cause for import or export like transfer of residence etc.

When shipping or moving internationally you should understand difference of difference between custom clearance and custom duties. Most of the shipping companies will include “Custom Clearance” in their quote. Do not get this confused with custom duty. Custom clearance is process in which shipping company or the licensed customs agent will work with various parties like shipping line, port authority, and customs officers etc. to ascertain custom duty and get shipment release from customs bonded warehouse.

You can click here to learn more about customs regulation and requirement for various countries for transfer of residence. 

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