When shipping your product overseas for an international trade show, private event, or to your local vendor or representative in that country, you have many different options on how customs in the particular country you are going to will allow you to claim as an entry.
Here are 3 major examples and explanations on what you can do.
Every country is different on how they asses Duty and VAT = Value Added Tax. GST = General Service Tax.
Here are 3 major examples and explanations on what you can do.
- Permanent import – when you ship your goods via air freight or ocean freight provide customs with a commercial invoice / packing list giving a description of the goods, the country of origin on where the items were manufactured, serial numbers if applicable, customs harmonized code to determine what percentage you will have to pay for Duty and VAT in order to enter the country, and over course the value of the goods.
Every country is different on how they asses Duty and VAT = Value Added Tax. GST = General Service Tax.
- ATA Carnet – this is a legal document that is prepared by either a 3rd party or your local Chamber of Commerce on depending on what country you live in. A Carnet is a legal document that needs to travel with the goods to the foreign country and needs to be signed out by customs by the exporting country and then signed into the foreign country to have a temporary import. By having an ATA Carnet you avoid paying all Duty and VAT in Foreign countries. Carnets are only valid for a maximum of one year so the goods need to export back to the point of origin in order to paying any fines or duty and VAT. The cost of the Carnet and the non-refundable bond you need to put up are based on the value of everything on the Carnet.
- Temporary Import Bond – TIB is non refundable bond that is paid to customs based on the value of the goods. You have to prove to customs that the goods re-export from the country in order to avoid paying any Duty and or VAT.