Import duty on goods from China

fkhalil1

Hi All,

I would like to know that how much custom duty and shipping charges will i have to pay on 20 ft container of school bags.

The total cost of items will be about 40,000 US dollars. The average price of each item will be 8 US dollars.

What additional charges will i pay when my consignment reaches here in Ireland.

Kind Regards,
fkhalil1

Seamus1964

http://www.dutycalculator.com

you can use it couple of times for free

fkhalil1

Thanks Seamus 1964 but i don't know here about the insurance charges

Seamus1964

**

darc wrote: »

Currently you are looking at about €2,300 for a 40ft from port in china delivered to address in leinster.

For a 20ft I'd guess it would come in about €1800 - €2,000.

fkhalil1

Thanks

Thats the insurance charges??

Seamus1964

Delivery charges

vicwatson

Get the commodity code first and enter it in the website .... I think it's like taric.eu Google and you'll find. This will give you vat and possibly duty rate.

vicwatson

Actually here's the link http://ec.europa.eu/taxation_customs/dds2/taric/taric_consultation.jsp?Lang=en

RUDOLF289

fkhalil1 wrote: »

Hi All,

I would like to know that how much custom duty and shipping charges will i have to pay on 20 ft container of school bags.

The total cost of items will be about 40,000 US dollars. The average price of each item will be 8 US dollars.

What additional charges will i pay when my consignment reaches here in Ireland.

Kind Regards,
fkhalil1

Hello fkhalil1,

In order to confirm the rate of duty, would need to know the material they are made of ? If they are made of vulcanised fibre or textile material, the rate of duty is 3.7%. If they are made of a different material, the rate of duty may be different. The duty is calculated over ;

- Cost of the product (commercial invoice value)
+ Cost of marine / cargo insurance (actual cost of insurance, should be no more that 0.5% of the value of the goods + transport costs + 10%)
+ Cost of the transport.

Assuming that the INCO Terms you have agreed with your supplier is Free On Board Chinese port of shipment, the following costs would arise ;

- Value of the goods (Commercial Invoice value) Us$ 40.000
- Insurance value for duty purposes Us$ 40.000 + Us$ 1650 (transport costs) + 10% (insurance companies allow 10% extra to allow for incidentals) = Us$ 45815 @ 0.5% = Us$ 229.08
- Value of transport costs for Duty purposes = Us$ 1000
Total Value for Duty purposes = Us$ 40.000 + Us$ 229.08 + Us$ 1000 =
Us$ 41229.08

Customs rate of exchange for June = Us$ 1.1118 = € 1.00

Euro value for Customs duty purposes = € 37083.18 @ 3.7% = € 1372.08 (Duty)

You will also have to account for VAT @ 23%. That is calculated over ;

- Value for Customs Duty purposes = € 37083.18
- Duty Amount = € 1372.08
- Subtotal = € 38455.26 @ 23% = € 8844.71

Total payable to Revenue = € 1372.08 + € 8844.71 = € 10216.79

In relation to VAT please note :
- VAT paid on imports is a deductible input for VAT registere traders, e.g. if you are registered for VAT you can claim that back in your periodic VAT return.
- It is possible to structure your imports in such a way as to eliminate the cash outlay on arrival. This can be done by clearing the cargo at the port of transhipment (usually Rotterdam), settle the duty at that point and then account for the transaction in your VAT return. That would improve your cash flow position, provided you properly account for the transaction in your VAT return. If you send me a PM with your e-mail address I can send you an outline of how the process works.

Please note, the above is an indication, based on FOB Chinese Port of Shipment. I would stronlgly recommend to take charge of the shipping and agree FOB terms with your supplier. That way you control the process through an Irish based forwarder and can avail of the advantage of clearing the shipment in Rotterdam.

Feel free to post again or PM if you require any further information.

Cheers,
Rudolf289

RUDOLF289

vicwatson wrote: »

Get the commodity code first and enter it in the website .... I think it's like taric.eu Google and you'll find. This will give you vat and possibly duty rate.

Hello vicwatson,

Just to point out that the EU taric website deals with EU customs issues, such as duty and customs classification only. It will not deal with the VAT rate as that is up to the individual memberstates.

If you want information on VAT in Ireland suggest to go to www.revenue.ie

Cheers,
Rudolf289

allthedoyles

To avoid demurrage and detention charges , there are two important documents you will need before collection.
Customs Clearance and Port Clearance .

So collect - offload - and return container within the timeframe allowed on paperwork.

Check paperwork carefully as the return depot is normally different to collection depot.

RUDOLF289

allthedoyles wrote: »

To avoid demurrage and detention charges , there are two important documents you will need before collection.
Customs Clearance and Port Clearance .

So collect - offload - and return container within the timeframe allowed on paperwork.

Check paperwork carefully as the return depot is normally different to collection depot.

That normally is up to the agent who clears the shipment and arranges the delivery. The agent would arrange the release from the shipping line, usually against payment of the local port charges and surrender of the original bill of Lading. It would be unusual that the importer would make those arrangements themselves. You expect that a professional agent is able to ensure that customs clearance is effected in a timely manner (if goods are cleared in Rotterdam then they can be delivered as soon as container is available on the terminal since there is no further customs involvement). That should ensure there is no issue with demurage (usually there is at least 5 to 7 days of free time on quay) Detention would only come into play if the container is not immediately unloaded by the consignee. Again the agent who deals with the shipment should be able to ensure that all these issues are managed without any input required from the importer.

Cheers,
Rudolf289

allthedoyles

My post was intended for a situation where the agent clears the shipment , but importer arranges collection himself .

Importer can use Port haulier but will be more expensive than one of his own local hauliers , and he could incur extra charges too, as ime , a local haulier is more flexible .

Depending on distance from Port to final destination , it is possible to save euro's on haulage

vicwatson

RUDOLF289 wrote: »

Hello vicwatson,

Just to point out that the EU taric website deals with EU customs issues, such as duty and customs classification only. It will not deal with the VAT rate as that is up to the individual memberstates.

If you want information on VAT in Ireland suggest to go to www.revenue.ie

Cheers,
Rudolf289

Im aware of that, I was advising the op they needed the commodity code (see post 7) before one could calculate the rate of duty that was possibly due