Why do I pay duties and taxes on international orders?Updated a year ago
Duties and taxes are collected on imports and some exports by a country’s customs authorities. A good’s value will usually dictate the import duty, and the duties also can vary by product category. Depending on the context, an import duty may also be known as a customs duty, tariff, or import tariff. The duties are mandatory and must be paid, whether the fees are paid by the shipper or (as typically is the case) by the customer/recipient. Other factors besides the good’s value define the amount of duties to be paid, including trade agreements between countries and specific customs authorities. For example, some countries have minimum thresholds in terms of good’s value below which no duties apply (AKA “de minimis” value)
In addition to duties, many governments levy a tax on imports. Like duties, import taxes are usually a percentage of the good’s value. Also, some countries charge a variety of taxes on the goods imported. For example, Canadian provinces charge a variety of taxes – from a goods and service tax (GST) to a harmonized system tax (HST) to a retail sales tax (RST).