International shipping is complicated, which is why you need an expert shipping company to handle it for you.
Not only do you need to consider the cost of moving the product from A to B, but there are other expenses entailed. This includes VAT/GST, De Minimis Tax, De Minimis Duty, and more. The amount you need to pay will depend on the products you are sending, where you are sending them to, and where you are sending them from.
De Minimis tax is subject to parcels worth a certain value. For example, if you’re shipping to Japan, products that are worth more than 10,000 JPY will be subject to this tax.
You also have FOB (Free on Board) and CIF (Cost, Insurance, and Freight), which are essentially two different ways of calculating the VAT you need to pay. With FAB, VAT is simply added to the item’s price, sans shipping. With CIF, the VAT is applied to the sum of the product, plus international shipping costs.
There are plenty of other considerations as well. For example, there are some product restrictions and limits when sending to certain countries. You may need to pay more to ship alcohol to another country than you would to send a pair of trainers, for example.
It can seem like the taxes and extra costs are never-ending, as countries have their own rules and regulations. For instance, Canada adds a massive 11% of additional tax to luggage.
If you would like to know more about international shipping, please do not hesitate to get in touch with us.
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