DUTIES AND TAXES

What are Duties and Taxes?

When transporting goods across international borders, shipments are subject to duties and taxes as determined by customs in the destination country.

Shipper’s Guide to Duties and Taxes

Learn the fundamentals about duties and taxes when shipping worldwide.

Duties Calculated

Whether a shipment is a gift or not, it must still go through an import procedure as determined by custom’s law in the destination country. The shipment is cleared through customs based on the origin country, the value and quantity, but not its purpose. Dutiable shipments are subject to a customs duty, which is a tariff or tax imposed on goods when transported across international borders.

The calculation of duties depends on the assessable value of a dutiable shipment. For the purpose of this calculation, dutiable goods are given a classification code that is known as the Harmonized System code.

This system has been assigned by the World Customs Organization and continues to evolve.

Who is Responsible for Payment?

The payment of duties and taxes are typically the responsibility of the receiver.

In that case, after shipment delivery, Lightdelivery service invoices customers for the duties and taxes we paid on their behalf at destination, plus a small administration fee.

Taxation Across Borders

Taxes are imposed on goods when they are moved across a political boundary (although some free trade zones exist around the world). Taxes are usually associated with protectionism, the economic policy of restraining trade between nations.

Taxes are usually imposed on imported goods, although at times may also be imposed on exported goods.

Receiver’s Guide to Duties and Taxes

Learn the fundamentals about duties and taxes to understand who pays and why.

FAQs

Why did my online purchase get delivered by Lightdelivery service?

The online retailer has an agreement for Lightdelivery service to deliver items ordered online.

I was charged duties and taxes by customs for something purchased online. Why wasn’t that included as part of the overall shipping costs?

Duties and taxes are most typically not included in the price of the goods you purchase online.
When purchasing goods online, some or all of these goods may not originate in the country you reside in.
When goods are not shipped domestically (within your country) or within a single customs union, such as the European Union, you are liable to pay any inbound duties and taxes which your local customs authority deems appropriate.
To ensure the Lightdelivery service courier can deliver your goods in shortest possible transit time, when we enter your country, Lightdelivery service pays the customs authority immediately on your behalf for any duties and taxes that are due on the goods.
Lightdelivery service only releases the goods to you upon the full repayment of any duties and taxes that were paid on your behalf.

Why do I need to pay customs duty?

Although you ordered and purchased the goods online, the goods are still subject to an import procedure to clear the shipment through customs. Clearance depends on:

The country of origin
The value including transport charges
The quantity of goods

Each country has its own customs laws and the duties for different types of goods and values are set locally. Lightdelivery service, like any other international transportation company, must adhere to local customs legislation and so Lightdelivery service pays duties on the receiver’s behalf to clear shipments on arrival.

When making my purchase it stated the price includes shipping costs. Why was I asked by Lightdelivery service to pay additional charges to have my package delivered?

You will not be paying to Lightdelivery service any further shipping costs. Rather, you will be asked instead to pay customs duties, taxes and other import charges related to customs clearance in your home country, as per local regulations.

Why do I need to pay customs duty if I received a shipment as a gift?

Whether a shipment is a gift or not, it must still go through an import procedure as determined by custom’s law in the destination country. The shipment is cleared through customs based on the origin country, the value and quantity, but not its purpose. You will need to pay customs duty and taxes only if the value of the gift is above a stated local threshold.

Why am I restricted with value and quantity if I am ordering for my personal use?

Every country has limitations for imported goods that are used for personal use. This is to avoid misuse, and to distinguish imports for personal and commercial use.

What additional charges can I expect following customs clearance?

Depending on value and the type of goods imported you may expect the following:

Customs import duties (percentage of shipment value and transport charges)
Local tax
Handing fee