All tax payments must be paid at the border, unless cargo is forwarded to a bonded warehouse. The Latvian customs tariff system is still evolving. Under the tariff law that was adopted in December 1994, Latvian customs tariffs on raw materials, spare parts, and capital goods are .5 to 1 percent. Tariffs on agricultural products are relatively higher.
Duties vary by the good that is exported.
The duty is assessed on the CIF, or cost, insurance and freight. There is no import tax in Latvia. The Value Added Tax is a European type of sales tax that is applied at all stages of production of a good, and is also applied to export transactions. Fixed investment goods imported into Latvia are not subject to VAT provided the importer is a registered VAT-payer and the imported asset does not threaten Latvian competitiveness. Zero percent tax is levied on export services, international transportation, and services related to export of goods.