It is a tax levied by the government on imports from other countries. For example, let’s say someone imports a product into the United States, and the import duty they pay has an additional charge. The increase in imported goods is often due to the “luring” of the goods so that consumers can buy from the domestic market instead. With the global e-commerce trend, the impact of import taxes on online businesses has become very important for business owners. Because governments now consider online businesses and companies when they charge import duties and taxes here. The tax to be paid depends on the number of imported products, the type of products, and the country of origin. In Brunei, the Royal Customs and Excise Department is responsible for imposing import duties and enforcing import regulations.
What it is
These are taxes levied by a certain authority on the importation of goods. In most cases, the value of imported goods is determined by the tax imposed by the government. Import duties are often replaced by customs duties, tariffs, or import duties. In the context of economics, they are taxed to generate revenue for the state and protect domestic goods from the rise of foreign products. Yet another reason for collecting taxes is to prevent foreign products from overflowing the local market.
Import duties in the country
In Brunei, fees are levied on imported goods and are collected by the Royal Customs and Excise Department. Fees in Brunei vary depending on the type, origin, and value of the imported goods. Brunei has introduced a tariff schedule where various import duty rates apply to different types of goods. The rates range from 0 percent to 20 percent, with an average rate of approximately 5 percent. Some products, such as books, humanitarian products, and certain types of medical equipment do not attract import duties. In addition to import customs duties, other taxes, and fees, such as value-added tax (VAT) and excise duty, are sometimes levied on imported goods. The general VAT rate in Brunei is 5 percent, although not all goods and services have to pay VAT.
Bruneian importers need to acquire an import license to bring certain goods, such as weapons, explosives, and some types of chemicals into the territory. They may also be subject to other regulations depending on the type of goods being imported. Importers need to be informed of all the taxes and fees that apply to importing goods into Brunei to prevent penalties or delays in clearing their goods at the border. Importers can seek more information from the Royal Customs and Excise Department or a customs broker about current or new import duties and regulations.
Charging import duties
Import taxes vary from country to country. They are usually charged as a percentage of the customs value, including insurance and shipping costs. Not everyone knows that import duties apply to shipments from outside a country. However, as an importer, it is imperative you know and informs your international customers about this tax that will be charged. That way, they are not surprised when paying extra for delivery. And they can even calculate it based on their country’s tax rate and add it to the price of the product they are buying to get an idea of what they will pay. If you are not sure how to calculate import tax, you can contact a professional or business support company for help.
Note that all importers have to pay the import duties on their goods before they are cleared by customs. If they do not pay, they can face financial penalties, fines, and even confiscation of the goods.
