What are duty and tax and who pays them?
When a business is involved in importing goods for commercial use from another country, they are responsible for paying duty and/or taxes on imported goods. Taxes are self-explanatory and typically involve GST/HST. While a customs broker can best help you to estimate duty and taxes, it is helpful to understand the ins and outs of duty.
What are import duty and tariffs?
An import duty is a tax that is imposed on goods that are imported from another country. As part of government policy, an increased price is imposed for goods that are imported from other countries to make these items less desirable. This is commonly practiced in order to encourage consumers to purchase goods manufactured nationally or locally. You may sometimes see the words duty and tariff used interchangeably, but there are some differences.
In general, a tariff is a percentage of the value of an item that is taxed. Import duty is actually the amount paid on the imported product and its value completely depends on the value of the item or items.
The importance of import duties for online purchases
As an eCommerce global trade participant, it is imperative that you are aware of the duties and tariffs that apply to your merchandise. In terms of the final price of the products being imported, duties do have a huge impact on your online business. In an age where online shopping is growing internationally, it is important to know how import duties and taxes are affecting business transactions overall.
It is always important to keep your customers up to date on the import duties and tariffs in order to prevent them from being caught off guard. Import costs can be effectively communicated on your checkout page, product pages, or in email confirmations to increase customer confidence.
Calculating import duties
Our team has developed online software to help estimate tax and duty in 2022 for imports within a few minutes and with a few clicks of a mouse. The Canadian duty calculator is a useful tool that can be utilized when planning to import goods to Canada.
Paying duty and/or taxes on imported goods
Paying duty and taxes are just one aspect of importing goods that must be considered. The importation of goods also requires forms to be filled in as well as communication with several government agencies. Importing and exporting is a highly regulated activity in Canada. To be sure that everything is done correctly and accurately, and to know that you will be able to avail yourself of the best rates, you will want to employ the services of a customs broker.
Argo Customs Brokers can make the process easier for you. They have the knowledge and experience required to ensure that all activities that relate to importing your goods are attended to. They regularly communicate with government agencies and know which ones would be required and what information will satisfy their requirements.
We tailor our brokerage services according to clients’ specific needs and requirements. We want to offer the best possible services to our customers to ensure they get exactly what they need from us. We even have a 24-hour support line. Customer service Is our priority!
We welcome your inquiries about customs clearance of all types. For more information, to arrange an assessment, or for a quote on specific shipments, feel free to contact us at any time.