Normally, you must consider the following taxes:
- CIF price (FOB could also work sometimes);
- Custom duty;
- Value Added Tax (VAT);
- Consumption tax.
Every product entering one country is subjected to VAT, which have different rates according to the product itself.
Consumption Tax rates vary based on the product category and on the destination country. For example, in China this tax is levied only on luxury items, such as expensive jewels, tobacco, high-end automobiles and motorcycles, batteries, to name a few.
According to international agreements among countries, import duties (custom duties) are subjected to different rates. The duty rate depends on the product category you are working with.
The Gross Margin indicated below refers to the profit you expect to earn.
The following calculator provides an easy visualization of the items you should collect to calculate the import tax duty between your country of origin and the selected destination country. The calculator also offers a quick computation, but it does not guarantee the correctness of results. It can be used as tool, but companies should not base their business decisions on it.
To have a detailed information about the import tax duty your products should bear, please contact us.