Duties are a levy charged on goods entering a country
designed to both protect local industries
against foreign competition and to generate revenue. They are collected
by customs officials. Sales tax or VAT is a national charge placed on most
purchased products. In some countries like
the UK certain products can be exempt from VAT. Generally
duties and taxes will have an impact
on the cost of your goods to sellers so it's important to
be clear on how much these charges
amount to. Country of origin. The origin of your products is important
because it can have an impact on the amount of duty or tax
that needs to be paid and is something you will be required
to declare. HMRC has clear rules on this and they cover
both manufacturing and reselling.
So you'll need to get a statement on the origin of the goods from your supplier.
How duty is calculated. To calculate the amount of duty
that will be levied you need to first
find out the HS code of your product. HS codes, or to give them their full title
harmonised system codes, can sometimes be referred to as a commodity
or tariff codes. You can look them up on gov.uk
They will display the percentage of duty which applies to the code
and all other charges or regulations which are associated with it.
Once you have this figure, add together the value of your goods
the freight costs and any other additional costs relating
to the shipment. And multiply this figure by the total duty percentage.