Calculating Duties and Charges Print

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What arrival costs.

WHAT IS TYPICALLY LEVIED

Import duty, based on classification and value Value added tax, where applicable Levies applying to certain goods or generally Port and terminal charges Inspection fees

WHAT DUTY IS CALCULATED ON

The customs value, which is usually the transaction value plus freight and insurance.

WHY THAT MATTERS

Duty is charged on more than the purchase price.

WHAT ELSE APPLIES TO THE SAME BASE

Value added tax, typically calculated after duty.

WHAT THAT MEANS

Charges compound, and the total is higher than each rate suggests.

HOW TO ESTIMATE PROPERLY

Work through each charge in sequence, on the correct base.

WHAT TO ASK YOUR CLEARING AGENT FOR

A written estimate, itemised, before shipment.

WHY ITEMISED

It lets you verify each component.

WHAT TO BUDGET FOR BEYOND DUTIES

Agent fees Terminal handling Storage, if clearance is delayed Inspection and testing Inland transport

WHAT DEMURRAGE AND STORAGE ARE

Charges for containers and cargo remaining beyond free time.

WHY THEY MATTER ENORMOUSLY

They accumulate daily and can exceed the value of the goods.

WHAT CAUSES THEM

Documentation problems Funds unavailable Inspection delays Agent inefficiency

WHAT TO DO

Have documents and funds ready before arrival.

WHAT TO TRACK

Free time, and the clock.


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