Calculate customs fees

When importing goods, such as cotton t-shirts from China, it is important to accurately calculate all associated costs. Below is a step-by-step guide to help you make this calculation, including import duties, VAT, advance commission and customs fees. In this article, I'll explain step by step how to easily calculate customs fees and give you a free tool with how you can do this too!

Step 1: Calculate the Customs Value

The customs value is the value of the goods you import. Roughly speaking, this is the purchase value of the shipment + the transport costs up to the time of customs clearance. For this example, we assume a customs value of 5,000 euros.

Step 2: Determine the Import Duty

The import duty is a tax that you pay to import goods. For cotton t-shirts (HS code 6109100010) from China, the import duty is 12%. Check out the website from customs to check this. Don't you have an HS code yet? Check out our free tool to find the correct HS code within 10 seconds

Calculation:

• Import duty = Customs value * Import rate
• Import duty = 5,000 euro * 12%
• Import duty = 600 euro

Step 3: Determine the VAT

In the Netherlands, the VAT on imported goods is usually 21%. The VAT is calculated on the sum of the customs value, the import duties, and any transport costs and insurances.

Assumptions:

• Transport and insurance costs: 500 euro

Calculation:

• Total value before VAT = Customs value + Import duties + Transport costs
• Total value before VAT = 5,000 euro + 600 euro + 500 euro
• Total value before VAT = 6,100 euro
• VAT = Total value before VAT * VAT rate
• VAT = 6,100 euro * 21%
• VAT = 1,281 euro

You can request a refund or transfer of the VAT. With an Article 23 permit, you can transfer the VAT to your quarterly return, if you import goods via the Netherlands and you have a business. So you only pay VAT when you sell your products. Read here how to easily apply for the permit.

If you do not have Article 23, you can reclaim the VAT when you return quarterly.

Step 4: Add Advance Commission

The advance commission is 2% of the total amount of import duties and VAT.

Calculation:

• Advance commission = (Import duties + VAT) * 2%
• Advance commission = (600 euro + 1,281 euro) * 2%
• Advance commission = 1,881 euro * 2%
• Advance commission = 37.62 euro

Step 5: Add Customs Clearance Fees

The customs clearance fee for one HS code is 35 euro.

Step 6: Calculate Total Costs

Calculation:

• Total import costs = Customs value + Import duties + VAT + Transport costs + Advance commission + Customs clearance costs
• Total import costs = 5,000 euro + 600 euro + 1,281 euro + 500 euro + 37.62 euro + 35 euro
• Total import costs = 7,453.62 euro

Summary

• Customs value: 5,000 euro
• Import duties (12%): 600 euro
• Transport costs: 500 euro
• VAT (21%): 1,281 euro
• Advance commission (2%): 37.62 euro
• Customs clearance costs: 35 euro
• Total Costs: 7,453.62 euros

So, the total cost of importing cotton t-shirts from China with a customs value of 5,000 euros is 7,453.62 euros. Use our free tool to get an estimate of the customs costs yourself within seconds.

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Do you need help calculating customs fees?

Do you have any questions or need help finding the right HS code? Please contact our customer service via the chat or by calling +31 85 130 42 12 . You can also send an email to forwarding@cargomate.nl.

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