Duties and Taxes

Brazil's Import Duties; Duty and Tax

Brazil and its MERCOSUL partners implemented the MERCOSUL common external tariff (CET) on January 1, 1995. The CET levels range between zero and 20 percent, with the exception of tariffs on telecommunications equipment, some capital goods, and products included on Brazil's national list of exceptions to the CET, such as shoes, automobiles and consumer electronics. For products covered by the CET, the maximum Brazilian tariff is now 22.5 percent; the most commonly applied tariff is 17 percent. Duties are levied ad valorem on the cost, insurance, and freight (C.I.F.) of the import.

Shipments by air valued between 51 USD and 3,000 USD are subject to a flat 60% duty and tax on the FOB value of the shipment regardless of the commodity. Medicaments for personal use are exempt from this duty and tax. Tobacco products and alcoholic beverages cannot be shipped via air express service.

Brazil also assesses the following taxes and fees on imports over and above duty and tax:

Brokerage Fee --1% of C.I.F. value
Warehouse Tax --1% of the import duty
Fee for Handling Charges--varies according to value of product (from 20 USD to 100 USD)
Administration Commission--currently fixed at 50 USD
Additional Port Tax--two fees totaling 3 % of C.I.F. value
A Merchant Marine Renewal Tax (MMR) is assessed at 25 percent of ocean freight charges on imports by sea, payable by the importer. There is current legislation that proposes a reduction of the MMR tax to 10 percent.

Merchandise entering duty free includes newspapers, maps, books, and magazines. Passenger baggage, such as personal clothing, jewelry, consumption goods and other objects for the passenger's professional or domestic use, are exempt from duty and tax. Souvenirs with a value not exceeding 500 USD also enter duty free. Personal effects of individuals transferring residence to Brazil are duty free if accompanied by an authorization by the Brazilian Embassy or Consulate in the country of origin.

[source] FedEx's Brazil Country Profile
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Greece's Import Duties; Duty and Tax

Greece's Import Duties; Import Duty Rate Greece, like most member states of the European Community, bases its Harmonized Tariff Schedule on the TARIC (Integrated Tariff of the European Community) which is issued by the Commission and the Member States for the purpose of applying Community measures relating to import and exports, and-when necessary- to trade between member sates. The TARIC also serves as a basis for the working tariffs and tariff file of Greece and other Member States.Greek customs values shipments at C.I.F. prices. Import duty rates are divided into two classifications: Most Favored Nation (MFN) and General. Import duties are calculated on ad valorem basis, i.e. expressed as a percentage of the value of the imported goods. There are three primary entry types for importing into Greece:

Standard clearance procedure
Simplified clearance procedure
Simplified declaration procedure

The first two procedures apply to all shipments regardless of value; the third one applies to shipments of commercial samples valued below 45 EUR or gifts valued below 23 EURO and/or to negligible value shipments below 22 EURO and provides Duty and Tax relief.

Below is a summary of the new rules for EU deminimis value that enter into effect December 1, 2008:

• A commercial shipment below 22 Euros: no duty and no VAT collected.
• A commercial shipment between 22 Euros and 150 Euros: no duty but VAT is collected.
• A commercial shipment over 150 Euros:duty and VAT are collected.

Antidumping Under strict enforcement of unfair trade laws, Customs will assess antidumping duties or countervailing duties. Antidumping duties are assessed on imported merchandise sold in Greece (EU) at less than the normal price of goods in the manufacturer's home market (also called fair market value).

Excise Duties Excise duty rates may also be applicable on certain items such as alcohol and tobacco. For further information, please contact the Greek Customs Office.

Excise taxes are assessed against certain commodities, which are normally identified as "luxury" goods. The excise tax is normally assessed against tobacco products, perfumes and alcohol products but can also be assessed against other goods as deemed by Greek regulations. A 12% admissions tax is applied on all motion pictures.

Additional Duties Countervailing Countervailing duties are assessed to counter the effects of subsidies provided by a foreign government for merchandise exported to Greece resulting in artificially low prices that are detrimental to Greece and other European Union member states industries.

Watch Duty Rate Watches imported into Greece are subject to classification and duty assessment based on a per item basis. The actual duty and the final rate of duty are determined based on the classification of the watch at the time of entry processing with customs.

Import Taxes In addition to duties, goods imported into Greece are also subject to a value-added Tax (VAT) which is generally charged at one of three rates:

The rate of 18% applicable to certain pharmaceutical products, movie pictures, hotel and restaurant services, transportation services, agricultural services, street cleaning services, entertainment services, building and construction services, medical services and funeral services.

The standard rate of 19%, applicable mostly to the sale and imports of human or animal foodstuffs, water, agricultural chemicals, pharmaceuticals for animal use, medical and health products, mopeds, vehicles, personal dwellings.

The reduce rate of 4% applicable to books and newspapers.

Customs Fees Invoice Fee Customs in some situations will assess additional fees based on the invoices provided for a shipment. The fee is usually levied if they deem them necessary as part of the terms of entry due to the size of the shipment and the related large number of invoices provided by the shipper for his goods.

Examination Fees Additional fees can be assessed on some commodities to cover the expense of performing the examinations and or testing required as a condition of the goods entry into the commerce of Greece. Commodities affected: cosmetics, drugs and medicines, artwork.

[source] FedEx's Greece's Country Profile
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Argentina's Import Duties; Duty and Tax

Import Duties

All imported goods are subject to an ad valorem duty that is based on the cost of the goods, plus insurance and freight (CIF).

Antidumping

Customs will assess antidumping duties on imported goods sold in Argentina at less that the normal price of the goods in the manufacturer's home market (also called fair market value). Specific information regarding commodities that are subject to anti-dumping duties can be found at the Comision Nacional de Comercio Exterior website at http://www.mecon.gov.ar/cnce/

Excise Duties

Alcoholic beverages, tobacco, soft drinks, syrups, extracts, concentrates and consumer electronic products are subject to luxury and excise taxes.

Additional Duties

Countervailing duties are assessed to some goods to counter the effects of subsidies provided by the foreign government for goods exported to Argentina resulting in artificially low prices that have a detrimental impact on Argentine industries. Specific information regarding commodities that are subject to countervailing duties can be found at the Comision Nacional de Comercio Exterior website at http://www.mecon.gov.ar/cnce/

Import Taxes

In addition to the tariffs, imported goods are subject to additional fees and taxes such as:

0.5 percent statistics fee on the CIF value (except capital goods). This tax is not levied on trade between MERCOSUR member countries.

Depending on the product, either 21 or 10.5 percent value added tax (VAT) on the sum of the CIF value, tariff and statistics fee.

Depending on the product, either 10 or 5.5 percent advanced VAT on the sum of the CIF value and statistics fee on all goods imported for resale (goods imported by the end-user are exempt).

3 percent anticipated profits tax on all retail goods (goods imported by the end-user are exempt).

[source] FedEx's Argentina's Country Profile
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Mexico's Import Duties; Duty and Tax

Import Duties

Duty rates. All tariff items are covered by ceilings under the WTO. The bound ceiling rate is 35%. Applied rates are much lower due to tariff preferential treatment granted in trade agreements. The General Import Duty Law establishes the MFN rates. An annual directive determines the preferential tariff rates applicable to originating goods exported from those countries to which Mexico grants preferences (e.g. Bolivia, Canada, Chile, Colombia, Costa Rica, El Salvador, the European Community, Guatemala, Honduras, Iceland, Israel, Liechtenstein, Nicaragua, Norway, Switzerland, Uruguay, the US and Venezuela). Notice that most NAFTA originating goods are now duty free since the Agreement has reached its 10-year transition period. The sectoral promotion programs provide reduced import duties available to manufacturers of certain goods. Other reduced rates may apply to certain companies established at the border zone.

Antidumping

Mexico is a major user of antidumping measures. Currently, approximately 90 procedures have resulted in antidumping duty determination. Antidumping duties are charged on particular products (e.g. textile goods) from particular exporting countries (notably China) in order to bring their prices closer to the "normal value" (which may result in rates up to 1105%). Since the objective is to act against a genuine injury to the domestic industry, any non-compliance is severely punished.

Excise Duties

On January 1st , 2002 the Mexican Congress approved a comprehensive fiscal package that includes an increase in the tax rate on cigarettes and cigars and modifies the excise tax scheme for alcoholic beverages.

Additional Duties

Tariff types. Mexico levies ad-valorem duties (duties expressed as a percentage of the value of the imported goods), specific duties (duties levied as a fixed sum per unit of quantity) and compound duties (duties comprising an ad valorem duty to which a specific duty is added). Ad-valorem duties are the most frequent; specific duties apply to sugar and compound duties apply to sugar products.

Import Taxes

VAT. Customs authorities collect a value added tax (VAT) upon entry of the goods into Mexico. The VAT rate is normally 15%. The VAT is 10% for goods staying in the border zone (the border zone is usually up to 20 kilometers south of the U.S.-Mexico border). The VAT is assessed on the cumulative value of the customs value of the good plus the duty and other fees. The major items that are exempted from the VAT are the following: temporary imports, personal luggage, household furnishings of immigrants or returning nationals, and goods that are not subject to the VAT in domestic transactions, such as non-industrialized animals and vegetables, pharmaceuticals and certain food products

Customs Fees

In addition, Mexican customs charges a customs processing fee (DTA) of 0.8 %. Maquiladoras and PITEX companies pay a preferential fee. Goods originating from certain free trade areas are exempt from the processing fee.

[source] FedEx's Mexico's Country Profile
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Australia's Import Duties; Duty and Tax

Import Duties

Rates of duty payable by an importer are determined by the classification of goods within the Australian Customs Tariff.

In some circumstances, anti-dumping or countervailing measures, which result in the imposition of additional rates of duty, may also apply.

A Customs processing fee applies to goods that require formal entry to customs of $54.20 (AUD) which includes a $6.50 (AUD) quarantine fee for which a declaration is lodged.

Antidumping

Dumping occurs when an exporter sells goods to an Australian importer at a lower price than the goods are sold on the domestic market of the country of export. Subsidisation occurs where government assistance, by way of subsidy or other forms of financial assistance, is given to produce or export goods. Australia is very vigilant in protecting local industry against dumping and other unfair trading practices. Remedial action will be taken against overseas suppliers when it is demonstrated that the dumping or subsidizing of goods has adversly affected any Australian business producing similiar goods. For more information about Australian antidumping measures and programs, please visit the Australian Customs www.customs.gov.au website.

Excise Duties

None

Additional Duties

GST is currently set at a rate of 10% (in effect since July 1, 2000). Owners should have an Australian Business Number (ABN). The owners ABN number (which is linked to the importers owner code) may be approved for deferral from payment of GST. The ABN allows a correct match to the owner code. The ABN reduces the risk of an incorrect match to the owner code. (An incorrect code match may result in incorrect payment of GST should the company be deferred). FedEx can still process consignments without an ABN. It is preferred that the number is provided.

Importation of goods

Example of GST calculations

A sporting goods wholesaler imports a variety of golf clubs.

The customs VALUE of the golf clubs is AUD$20,000.

The customs DUTY payable is five percent, which is AUD $1000.

TRANSPORT and INSURANCE costs are AUD$2000.

Therefore the Value Of the Taxable Importation (V.O.T.I.) is $23,000.

The GST payable on importation is 10% of the V.O.T.I. = AUD$2300. (V.O.T.I. or Value of the Taxable Importation is the Value of the goods, plus any duty payable, plus the value of International Transport & Insurance costs).

GST Free There are exemptions from GST for some specific Items that are imported. Certain foodstuffs and certain medical aids / appliances may have exemptions. Certain goods, which qualify for duty exemption under By-Laws, may also be exempt from GST.

Import for private purposes Where taxable imports are made for private purposes or by unregistered entities, the GST paid on the import cannot be claimed as an input tax credit.

Temporary imports Duty and tax may not be required for temporary imports brought into Australia for a nominated period of time and then re-exported. (Special conditions and limitations apply - see previous heading covering temporary Imports in this profile). This applies where the importer provides a security or undertaking to Customs for payment of customs duty and taxes whilst the goods remain in Australia. No duty or taxes are payable when the goods are used in accordance with the terms of the security. Goods being entered into Australia under a temporary import bond are prohibited via FedEx Express International Priority Service. Consignments moving under this provision may move via FedEx Airport to Airport Service on a 023-airway bill.

Warehouse goods Duty/Tax are not payable on goods that are imported for warehousing (under bond). However, duty/tax becomes payable when the goods are removed from the warehouse (entry for ex-warehousing). Goods being entered as warehoused goods into Australia or exported from a warehouse are prohibited via FedEx Express International Priority Service. Consignments moving under this provision may move via FedEx Airport to Airport Service on an 023 airway bill.)

Imports that qualify for customs duty concessions

Low value goods are goods with a customs value of less than $1000 (AUD) and in which the revenue is nil or insubstantial ($50 or less duty and/or GST).

Goods exported and returned in an unaltered condition Warranty goods (Repaired or Replaced under Warranty and Free of Charge). Global product safety recall goods Passenger concession goods Bequeathed goods Goods on or in containers Goods imported for repair then exported. Trophies and medallions won outside Australia or donated by non-residents. Exports GST free - must keep records showing the goods were exported before or within the 60 days for them to be GST-free. Records such as airway bills, bills of lading, evidence from ACS, evidence that goods arrived in the country of destination.

Import Taxes

Australia has indirect taxes for most items. These taxes are comprised of: the Goods and Service Tax (GST), the Wine Equalisation Tax (WET) and the Luxury Car Tax (LCT). GST applies to most imported goods. There are a few exceptions from GST: select foodstuffs, certain medical aids, appliances and imports that qualify for certain customs duty concessions.

Subject to eligibility, importers who are registered for GST might be able to defer payment on imported goods by participating in the Deferred GST Scheme. Participants in the scheme account for importations in their Business Activity Statements (BAS). Importers can apply to defer GST through the Australian Taxation Office.

GST is applied at ten percent of the value of the taxable importation (VoTI). The sum of the taxable importation is calculated as follows:

the customs value of the imported goods, plus any customs duty payable, plus the amount paid or payable to transport the goods to Australia and to insure said goods for that transport, plus any wine tax payable (see section below for more details) The following is an example of how GST is calculated:

Customs value is 1,000.00

Customs duty @ 5% x $1,000 equals 50.00 (payable)

International transport and insurance is 150.00

Customs Fees

Shipments valued at more than 1000 AUD will require a Formal Import Declaration (IMD). Shipments that require an IMD will be subject a regulatory processing fee of 54.20 AUD per clearance.

[source] FedEx's Australia's Country Profile
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