Import tax in USA: Everything you need to know
Trade is one of the significant elements which contributes evidently to the economic fabric of a country. Carrying out imports and export across different geographical locations is an intricate task. To suffice the transportation, tax is levied for goods being transported and dispatched across the country boundaries. Precisely, the consumption charge is being paid by the importer before importing products to maintain a consolidated record.
Different countries have ascertained a predefined set of tax rules meant for different commodities, means of transportation and origin of the imported product. Accordingly, the final applicable duty is assessed and levied on each import.
While some countries that have officially signed treaties or trade agreements with other countries offer an exemption from the duties being implied. However, this is approved with a precondition that all the products must be listed with all cognizance.
This article covers a comprehensive roadmap to understand the concept of import tax in the United States of America. However, if you want to gain in-depth insight on a similar front, you can seek a Personal Tax Consultancy Service in Toronto or other cities in the US.
All About Tax Levied to Import Goods in the USA
There is a certain threshold slab set for taxes or fees which are ascertained to import goods into the United States. Moreover, there are some additional taxes collected by the administrative body the U.S. Customs and Border Protection (CBP), under the mandate of the Consolidated Omnibus Budget Reconciliation Act (COBRA) for imports made in the country.
They impose federal fees on many commodities like alcohol, tobacco and other beverages. The US Tax Consultants in Toronto can help you decipher and calculate the additional charges applied for each product under the COBRA.
Prior to the collection of excise duties, the amount is decided by the Internal Revenue. Adding to the list of duties imposed on importing goods into the United States is the user fees, collected by the customs. The amount is charged on the transportation route and mode into the boundaries of the country.
The Merchandise Processing Fee (MPF) charged for the type of entry of commodities are:
1. An additional value of 0.3464 per cent on the product.
The fees slab should be $538.40 to $27.75 (excluding freight and insurance charges).
2. For informal channels of entry (mail or speed post), the fee starts from $2.22, $6.66 to $9.99 for every shipment.
3. CBP implies a 0.125% Harbor Maintenance Fee (HMF) if the product is supplied via., seaways (ship).
Inference
4. The International Tax Consultants in Toronto can help you build a constructive strategy to ship products in the US. Excise duties are ascertained on the basis of entry type and mode of transportation, after evaluation by the CBP on each shipment.
