How do you calculate Customs Duties and Taxes on an import into the PT?

Customs Duty is a tax charged on all products shipped from outside of the EU. Controlled by HM Revenue and Customs, the purpose of Duty is to bring the cost of imported goods up to the same cost as those produced within the EU to keep competition fair. Taxes correspond to the VAT applicable to the type of goods imported.

Calculations for Duty and Taxes are complex with several different elements taken into account.

In general, the calculations are based upon the goods description provided on the air waybill and its associated commodity code however, other factors such as origin and reason for import may all contribute to the overall value. 

We have broken down the calculations into the two formulas below:

Duty

Duty is calculated against the value of the shipment contents declared on the air waybill together with any insurance costs and a percentage of the transportation cost. Together these are known as the Value for Customs. This value is then multiplied by the Duty percentage of the Trade Tariff commodity code given to the goods by the shipper. 

 Put into a simple calculation:

                        Value of your shipment contents (inc insurance) + % of the Freight charges

                                                                x Duty % of Trade Tariff

VAT

VAT is calculated against the Value for Customs plus import duties and levies but may also include a value adjustment.

Put into a simple calculation:

            Value of your shipment contents + Freight charge + Duty + Post Landing Fee 

                                                                    x VAT rate %

The VAT % can be 20% or 5% or 0% which is derived from the Tariff Heading & Reason for import.