WEBVTT - Understand duties and taxes

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Duties are a levy charged on goods entering a country

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designed to both protect local industries

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against foreign competition and to generate revenue. They are collected

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by customs officials. Sales tax or VAT is a national charge placed on most 

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purchased products. In some countries like

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the UK certain products can be exempt from VAT. Generally

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duties and taxes will have an impact

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on the cost of your goods to sellers so it's important to

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be clear on how much these charges

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amount to. Country of origin. The origin of your products is important

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because it can have an impact on the amount of duty or tax

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that needs to be paid and is something you will be required

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to declare. HMRC has clear rules on this and they cover

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both manufacturing and reselling.

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So you'll need to get a statement on the origin of the goods from your supplier.

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How duty is calculated. To calculate the amount of duty

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that will be levied you need to first

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find out the HS code of your product. HS codes, or to give them their full title

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harmonised system codes, can sometimes be referred to as a commodity

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or tariff codes. You can look them up on gov.uk

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They will display the percentage of duty which applies to the code

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and all other charges or regulations which are associated with it.

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Once you have this figure, add together the value of your goods

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the freight costs and any other additional costs relating

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to the shipment. And multiply this figure by the total duty percentage.