This tax is imposed by the government of every country on imports from other nations. For example, say one imports an item to any country in the continent, they have to pay an extra charge for the imported goods. This charge on goods imported is to make the goods less “attractive” so consumers can buy from the domestic market in their country instead. With the current trend toward e-Commerce, online business owners have to know how import duties affect their online businesses. Since e-transactions are now charged import duties and taxes. The amount of duty paid depends on the quantity of the products imported, the kind of products, and the source country. In Asia, every country has its tax authority that is in charge of collecting import duties and imposing import rules here.
What it is
They are taxes levied by a certain authority when goods are brought into a country. Quite often than never, the worth of the goods imported decides the duty taxed by the government. Import duties are often interchanged with customs duties, tariffs, or import taxes. They are levied to create revenue for the country and to protect native goods from the domination of foreign products. They are also imposed to stop foreign goods from flooding the local market.
Import duties in the continent
In Asia, charges vary by country and are usually determined by each country’s government based on its trade policies and agreements with other countries. The following are fees of some major economies in the Asian continent:
China’s fees vary from 0 percent to 50 percent, with an average of 7.5 percent. The country has introduced several tariff reductions recently, especially for consumer goods.
India’s fees vary from 0 percent to 150 percent, with an average of 11.8 percent. Due to its “Make in India” campaign, the nation recently increased its tariffs on various goods, including electronics and agriculture products.
Japan’s fees vary from 0 percent to 30 percent, with an average of 2.5 percent. In its bid to promote free trade, the country has been reducing its tariffs over the years.
South Korea’s fees range from 0 percent to 487 percent, with an average of 13.3 percent. The republic has implemented several free trade agreements with other countries, which have resulted in lower tariffs for many goods.
Singapore offers one of the lowest charges rates in Asia, with most goods being exempt from duties. However, some products such as tobacco, alcohol, and motor vehicles are liable to excise duties.
Charging import duties
Fees vary from country to country. Usually, they are charged as a percent of the customs value, including insurance and shipping charges. People are often unaware of the import duties charged on their shipments. Nonetheless, business owners should inform their international customers of this levied duty. This way, they are not shocked when they have to pay extra charges upon delivery. They can easily calculate the tax to be paid based on their country’s rate and the price of the product they intend to buy. This applies to new importers bringing goods into the country for the first time. For those unsure of how to calculate import duty, they can consult a professional or a business support company. Most of them provide an online calculator to simplify the process. It’s important to note that these rates are subject to change, and importers should always consult with the relevant customs agency or a customs broker for up-to-date information on import duties and regulations.
Keep in mind that importers have to pay charges before their goods are cleared by customs. When they fail to pay the levied duties, they may face financial fines, penalties, and even confiscation of the goods.
