This is a duty levied by the government for goods imported from other nations. It is the extra amount paid for an imported product, depending on the volume imported. This increase in the price of goods imported is often to make the goods seem more expensive so consumers can buy from the domestic market in their country. With the current trend towards e-Commerce, looking at how the levy impacts online businesses has become significant to business owners. Since governments presently consider online businesses and companies when charging import duties and levies. The amount of duty paid depends on the volume of the products imported, the kind of products, and the source country. In Bhutan, the Bhutan Customs and Revenue Service is in charge of collecting import duties and assessing import rules.
If you are an importer interested in learning about the import duties in the country, this article presents the required information
What it is
They are levies charged by a certain authority when goods are brought into a country. Generally, the value of the goods imported decides the duty rate charged by the government. Economically, they are levied to generate income for the country and to shield native goods against the dominance of foreign products. Also, they are collected to stop foreign goods from flooding the market.
Import duties in the country
The duties in this nation are levied on goods imported into the country and are collected by the Bhutan Customs and Revenue Service. The rates vary depending on the type of product being imported, its origin, and its value. The country has enforced a tariff schedule stating the applicable levies rates for different types of products. The tariff rates range from 5 percent to 50 percent, with an average of 15 percent. Some products like books, philanthropic goods, and certain types of medical outfits, are not taxed to pay levies. In addition to import duties, other levies and charges may also apply to some imported goods. The country’s VAT rate is 5 percent, although some goods and services do not attract VAT.
Local importers need import licenses to bring certain products like ammunition, snares, and narcotic medicines to the territory. They are also liable to other requirements depending on the type of goods being imported. It is therefore important for all importers to know the applicable levies and charges when importing goods into the nation to avoid any implicit penalties or detainments in the concurrence of their goods at the border. Importers can consult with the Bhutan Customs and Revenue Service or a customs broker for further information on import duties and regulations.
How it is charged
The levies vary from country to country. Generally, they are charged as a cent of the customs value, including insurance and shipping charges. Most people are ignorant of the import duties charged at the port. As a business owner, informing your customers of this duty is very important. This way, they are not shocked when they have to pay an extra charge upon delivery. They can fluently calculate the duty to be paid based on their country’s rate and sum that to the price of the product they wish to buy. For beginners, you can consult a professional or a business support company, if you are unsure of how to calculate your import duty.
Note that importers have to pay the levies for their goods to be released by customs. When they fail to pay the levied duties, they may face fiscal forfeitures, penalties, and sometimes confiscation of the goods.
