Yes, Best Inc.’s solid partnerships can handle up-front duties and taxes to deliver a more hassle-free experience for our clients. Although receivers are typically responsible for the payment of taxes and duties, our company handles these fees on our clients’ behalf and offers the opportunity for sellers to pay for them. In this case, we will invoice customers for the taxes and duties (after shipment delivery) that we have paid on their behalf and add a small administration fee.
It is important to note that most shipments are subject to an import procedure that is determined by the destination country’s customs law. The shipment will be cleared through customs based on the quantity, value, and origin country. A customs duty is a tax or tariff that’s imposed on goods when transported across international borders.
Governments tax dutiable shipments from other countries because they may want to:
Raise revenue
Control the flow of products
Protect domestic companies
Taxes and duties on shipments are legal requirements that must be settled before a shipment can be delivered. Duties are typically calculated based on the assessable value of a dutiable shipment. There are two main valuation methods that different countries utilize to determine taxable values, such as CIF (Cost, Insurance, and Freight) and FOB (Free on Board).
CIF includes the cost of insurance, item value, and the cost of transporting goods to the final receiver. FOB focuses on the value of the product and only applies to items shipped by sea freight.