Country Guide

Duty and tax de minimis

• Tax de minimis: 1,000 AUD
• Duty de minimis: 1,000 AUD Applied to the FOB value of the goods

Duty and tax de minimis

• Tax de minimis: 0 INR
• Duty de minimis: 0 INR

Duty and tax de minimis

• Tax de minimis: 0 BND
• Duty de minimis: 0 BND

Duty and tax de minimis

• Tax de minimis: 50 USD
• Duty de minimis: 50 USD

The landed cost for a cross-border transaction includes all duties, taxes, and fees associated with the purchase. This includes:

• Product price
• Shipping
• Duties
• Taxes
• Fees (currency conversion, carrier, broker, customs, or government fees)

Duty and tax de minimis

Ecommerce clearance shipments

• Duty and tax de minimis: 0 CNY

Applied to the CIF value of the order

Personal consumption shipments

• Duty and tax de minimis: 50 CNY

Applied to the CIF value of the order

De minimis value

Duty and tax will be charged only on imports into China where the total CIF value of the import exceeds China’s minimum value threshold (de minimis). China does not have a de minimis for ecommerce/courier shipments, which means duty and tax fees are charged on all ecommerce imports. Personal consumption imports have a duty and tax de minimis of 50.00 CNY, which means duty and tax will only be charged on personal imports with a CIF value over 50.00 CNY. Any personal shipments with an order value less than 50.00 CNY will be considered a duty and tax-free import.

Value-added tax

• Average rate: 13%
• Reduced rate: 9%

Applied to the CIF value of the order

VAT -Value-added tax

A 13% VAT applies to most imports into China; certain products are subject to a reduced rate of 9%. uses the CIF valuation method for calculating VAT.

Parcel tax

Parcel tax is imposed at a standard rate of 25% on goods imported into China for personal use. Here’s some information about parcel tax for personal consumption imports:

• A single item, regardless of its value, is subject to the flat parcel tax.
• Multiple items with a combined value under 1,000 CNY are subject to the flat parcel tax.
• Multiple items with a combined value above 1,000 CNY are subject to the normal duty and VAT calculation.
• If the parcel tax amounts to less than CNY 50, the tax is waived.

Consumption tax

A consumption tax between 1% and 56% is imposed on all imports into China falling under the following categories:

• Products whose over-consumption is harmful to health, social order, and the environment, e.g., tobacco, alcohol, firecrackers, and fireworks
• Luxury goods and non-necessities, such as precious jewelry and cosmetics
• High-energy consumption and high-end products, such as passenger cars and motorcycles
• Non-renewable and non-replaceable petroleum products, such as gasoline and diesel oil and
• Financially significant products, such as motor vehicle tires.

Consumption tax is calculated over the CIF value plus any applicable duty.

Average duty rate:

• Average rate: 12.5% Applied the the CIF value of the order

Import duty

Duty is charged on the CIF (Cost Insurance Freight) value of the item, which means that duty is calculated based on the price of the good, plus the cost of packing, freight, insurance, and seller’s commission.

Trade Agreements

China has at least 17 trade agreements that offer a zero or highly discounted duty rate for goods manufactured in participating countries.

China is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), China must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

Documentation and Paperwork

Always required:

• Bill of lading or air waybill
• Commercial invoice (3 copies)

Required for Express clearance:

• For shipments of multiple boxes: a packing list
• For online purchases: proof of payment
• For CAT B personal shipments: a copy of the receiver’s ID card or passport; “personal articles” should be written in the description of the goods on the commercial invoice

Required for Formal clearance:

• Packing list
•  

Sometimes required:

• Customs declaration
• Insurance policy
• Sales contract
• Import quota certificate for general commodities (where applicable)
• Import license (where applicable)
• Inspection certificate issued by the General Administration of Quality Supervision
• Inspection, and Quarantine (AQSIQ) or its local bureau (where applicable)
• Other safety or quality licenses

Prohibited, restricted, and controlled imports into China

Government agencies regulate imports.

Prohibited items:

• Ammunition and explosives of all kinds
• Biological products and substances
• Counterfeit currencies and counterfeit negotiable securities
• Disease-carrying animals and plants
• Electronic cigarettes
• Foods, medicines, and other articles coming from disease-stricken areas
• Gambling devices
• Guns, firearms, and any form of weapon
• Illicit drugs
• Lethal poisons
• Military equipment
• Old/used garments
• Pornographic material
• Printed matter, magnetic media, films, or photographs that threaten the political, economic, cultural, and moral interests of China
• Soil
• Toy guns

Restricted items:

• Alcoholic beverages
• Antiques
• Artwork
• Dietary supplements
• Jewelry
• Lithium batteries
• Plants
• USB sticks

Legal regulations for businesses

• Stipulations on certain commodities

Specific goods are subject to certain stipulations. To see a detailed list of these goods and the procedures and documentation they require upon entry into China, visit the following page: China stipulations on certain commodities.

• Express and formal customs clearance in China

Express clearance:

Shipment types and values:

CAT A – Documents – No commercial value: Declared value of documents should be 1 USD or 7 CNY.

CAT B – Personal effects, gifts, online purchases or a single item – Value is less than 1,000 CNY (800 CNY for parcels from Hong Kong SAR (China), Macau SAR (China) and Taiwan (China)): Value can be above 1,000 CNY for a single item personal shipment (e.g. handbag) if approved by customs. Taxes and duties still apply.

CAT C – Non-dutiable goods like samples, low-value products, advertising material – No commercial value: Total duty and taxes are less than 50 CNY.

CAT C – Some dutiable goods – Value is less than 5,000 CNY and goods are not regulated: Total duty and taxes are more than 50 CNY.

Customs processing time:

24 hours or less if all the paperwork is correct.

Formal clearance:

Shipment types and values:

CAT D – Dutiable goods that are subject to customs duties – Value is higher than 5,000 CNY: Value is less than 5,000 CNY, but goods are regulated.

Customs processing time:

At least 24 hours from receipt of complete and correct shipping paperwork.

Delayed declaration fee

A delayed declaration fee will be applied to shipments that have not been declared within 14 days counting from the declaration of the arrival of the shipment into the customs territory. Starting from its 15th day after arrival at customs, the shipment will be subject to the delayed declaration fee, which will be calculated on a per diem basis. The daily fee will be 0.05% of the CIF value of the imported goods. The declared declaration fee may be waived in the following situations:

The consignee still has not declared the shipment within three months of the import goods’ arrival declaration in the Customs territory, and the goods have been taken to be sold off by the Customs in accordance with Article 21 of the Customs Law of the People’s Republic of China; The consignee, upon Customs approval and with security furnished, takes delivery of the goods beforehand and completes the declaration formalities within the time limit guaranteed; The shipment is detained by Customs; the fee exemption will only apply to the period of detainment. The total delayed declaration fee is below 50 CNY.

Duty and tax de minimis

• Tax de minimis: 200 FJD
• Duty de minimis: 200 FJD

Duty and tax de minimis

• Duty and tax de minimis: 0 HKD

De minimis value

Hong Kong is a free port, so taxes, duties, and fees will not be charged on most imports.

Import tax

• N/A

Hong Kong does not levy a tax on imports.

Import duty

• N/A

Hong Kong does not charge duty on imports.

Any other import fees

The Hong Kong Government charges excise duties on liquors, tobacco, hydrocarbon oil, and methyl alcohol. The duties are applied according to their alcoholic strength or charged at specific rates per unit quantity. These are the only four items Hong Kong charges excise duty on.

Trade agreements

Hong Kong has at least eight trade agreements. Hong Kong, as a free port, engages in trade agreements with other countries and expect similar treatment in return. Hong Kong is also a member of several prominent Asian trade agreements:

• Asia Pacific Economic Cooperation (APEC)
• Closer Economic Partnership Arrangement (CEPA) with mainland China

Hong Kong is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), Hong Kong must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. However, Hong Kong is one of the four countries that have a free port. Since Hong Kong does not charge duty on imports, Hong Kong is in compliance with the WTO requirement to provide fair rates to other WTO member countries.

Hong Kong’s Customs authority

Hong Kong Customs

Documentation and paperwork

Always needed:

• Bill of lading or air waybill
• Commercial invoice
• Packing list
• Manifests

Sometimes needed:

• Import license or removal permits are required for Hong Kong’s four dutiable commodities.
• Copy of detention notice is required for container shipments transported by sea.

Prohibited, restricted, and controlled imports into Hong Kong

Prohibited items:

• Actinolite
• Amosite
• Anthophyllite
• Asbestos
• Controlled Chemicals (i.e. acetic anhydride, ephedrine, and pseudoephedrine)
• Crocidolite
• Dangerous drugs
• Electronic cigarettes (unless previously approved)
• Food containing banned coloring matter, artificial sweeteners, aflatoxins, preservatives, anti-oxidants, or certain metals
• Halons and chlorofluorocarbons (CFCs) (i.e. ozone-depleting substances)
• Ivory and ivory products
• Personal drugs
• Pesticides
• Radioactives
• Sand (more than 100 kgs)
• Smokeless tobacco and snuff
• Transshipment of strategic commodities (i.e. carbon fiber prepreg, firewall, firebox, etc.)
• Tremolit

Restricted items:

• Dutiable commodities
• Strategic commodities (certain electronic equipment, scientific instruments, etc.)
• Reserved commodities (rice, frozen or fresh meat, and frozen or fresh poultry)
• Agricultural pesticides
• Optical disc mastering & replication equipment
• Left-hand drive vehicles, outboard engines exceeding 150 hp/111.9 kilowatts
• Radioactive substances and irradiating apparatus
• Pharmaceutical products and medicines
• Rough diamonds
• Endangered species or products derived from them
• Dangerous drugs
• Controlled chemicals
• Hazardous chemicals
• Radio transmitting apparatus
• Dangerous drugs, pharmaceutical products, and medicines
• Controlled chemicals, such as substances that are precursors or chemicals for the manufacture of dangerous drugs or psychotropic substances
• Live animals and animal products
• Plants and plant pests
• Pesticides
• Strategic commodities, such as certain kinds of computer and telecommunication equipment, articles for military use, etc.
• Explosives, fireworks, firearms and ammunition, and weapons
• Soil and sand require authorization issued by the Agriculture, Fisheries, and Conservation Department (AFCD) prior to shipment arrival except when it is imported from China

Duty and tax de minimis

• Duty and tax de minimis: 0 INR

Applied to the CIF value of the order

De minimis value

Normally, duty and tax are only charged on imports where the value of the import exceeds the minimum value threshold (de minimis). However, India does not have a de minimis, which means duty and tax fees are charged on all imports. The only time goods are exempt from duty and tax is when they receive preferential treatment through trade agreements.

Import tax

• Standard rate: 28%

Applied to the CIF value of the order

Goods and services tax (GST)

GST is made up of three different kinds:

1. Central GST (CGST): A fee collected by the central government for sales in all states.
2. State GST (SGST): A fee collected by each state for sales within a state.
3. Integrated GST (IGST): A fee collected by the central government for sales between states.

The standard combined tax rate for goods being imported into India is 28%.

Import duty

• Average rate 35%

Applied to the CIF value of the order

Duty rate

While a duty rate of 35% for goods imported into India is most common, India has some unique duty charges that may apply to the goods you wish to import.

Other import fees

Basic Customs Duty (BCD)

• BCD is based on the product’s HS code and its origin. The rates range from 0% to 100%.

Countervailing Duty (CVD)

• CVD rates depend on the product; the fee ranges from 0% to 12%.

Special Additional Duty (SAD)

• A 4% SAD fee is applied to some imported goods that put domestically manufactured goods at a disadvantage due to sales tax.

Compensation cess

• Compensation cess is charged on certain products, such as tobacco and products that cause pollution (coal and cars).

Trade agreements

India has at least 13 trade agreements that offer a zero or highly discounted duty rate for goods manufactured in participating countries.

India is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), India must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

India’s Customs authority

Department of Revenue, Ministry of Finance, Government of India

Documentation and Paperwork

Always required:

• Bill of lading or air waybill
• Commercial invoice
• GST number

Sometimes required:

• Import license
• Bill of entry
• Packing list
• Freight certificate
• Insurance certificate
• Certificate of origin

Duty and tax de minimis

• Tax de minimis: 0 IDR
• Duty de minimis: 43,600 IDR

Applied to the CIF value of the order

De minimis value

Duty and tax will be charged only on imports into Indonesia where the total CIF value of the import exceeds Indonesia’s minimum value threshold (de minimis), which is 43,600 IDR for duty and 0 IDR for tax. All imports are subject to tax since the de minimis is zero, but anything under the duty de minimis value will be considered a duty-free import.

Import tax

• Standard rate: 11%

Applied to the CIF value of the order

Value-added tax (VAT)

The standard VAT rate for Indonesian imports is 11%.

Any other import tax

• VAT on electronic products and services: If your business’ sales in digital/electronic services exceed 600 million IDR and you generate traffic (website visits) from at least 12,000 users in Indonesia annually, then you may be appointed by the Director-General of Tax as a VAT collector and receive a tax ID number. If this is the case, you must collect and remit VAT quarterly for all sales based on the country’s requirements.

• Income tax: The income tax rate (known as PPh) in Indonesia is 7.5% and 10% depending on the product. If an Indonesian Import Identification number (known as API) or tax ID number is provided with the import, then income tax rates will typically be 7.5%. If neither of these is provided, the income tax rate will be 15%.

*Though the term “income tax” usually refers to a tax the government charges on its residents’ personal income, in Indonesia, it is also a kind of import tax.

Import Duty

• Standard rate: 7.5%

Applied to the CIF value of the order

Duty rates

The standard duty rate for imports is 7.5%. Certain product categories have their own duty rates, such as the following:

• Shoes: 25-30%
• Textile materials: 15-25%
• Bags: 15-20%

Imports valued higher than 1,500 USD are subject to duty rates that vary based on the product and can be as high as 30%. These high-value imports are also subject to formal clearance, whih requires an additional 3-5 days.

Documentation and paperwork

Always needed

• Bill of lading or air waybill

• Commercial invoice

• Pro-forma invoice

• Packing list

• Proof of transaction

  • All non-document shipments require proof of transaction such as a purchase order, sales contract, or payment transfer.

• Recipient’s local tax ID number or another national identification number

  • If this is not available, the consumer’s phone number is required
  • With the tax ID provided, income tax is applied at 7.5%. Without this, income tax is applied at 15%.

Sometimes needed

• Import licenses based on the product’s Harmonized System (HS) code

  • For example: Tricycles, scooters, pedal cars, similar wheeled toys, and dolls’ carriages require the following:

    • Survey report (applicable for producer/importer) from Indonesia’s Ministry of Trade
    • Indonesian National Standard (SNI) certificate from Indonesia’s Ministry of Trade

• Supporting documents when customs flags an import as suspicious

  • Proof of purchase (POP)
  • Website link (the website where the item was bought)
  • Personal use form (mandatory for medicine and supplements)

• Certificate of origin

  • Necessary for shipments of drugs/medicine and certain products of animal origin

• Health certificate from the Food and Drug Agency

  • Necessary for nutritional supplements, vitamins, and medicines

• Doctor prescription

  • Necessary for prescription medication

Prohibited, restricted, and controlled imports into Indonesia

Government agencies regulate imports.

Duty and tax de minimis

• Tax de minimis: 50 USD
• Duty de minimis: 50 USD

Duty and tax de minimis

• Duty and tax de minimis: 10,000 JPY

Applied to the CIF value of the order (in Japan, the CIF differs based on whether it is a business-to-business (B2B) or business-to-consumer (B2C) shipment, see the Import duty section)

De minimis value

Duty and tax will be charged only on imports into Japan where the total CIF value of the import exceeds Japan’s minimum value threshold (de minimis), which is 10,000 JPY. Anything under the tax de minimis value will be considered a tax-free import, and anything under the duty de minimis value will be considered a duty-free import.

Import tax

• Standard rate: 10%
• Reduced rate: 8%

Applied to the CIF value of the order

Consumption tax/Value-added tax (VAT)

The consumption tax was implemented in Japan in 1989 with a standard rate of 3.0%. Over the years, the tax has increased to a standard rate of 10% and a reduced rate of 8% for certain goods. The VAT is charged based on the CIF value of the order.

The standard rate is comprised of a 7.8% national consumption tax and an additional 2.2% local consumption tax, totaling a 10% tax charge on imports where the CIF value is greater than ¥10,000.

• VAT calculation: (CIF + duty amount) x .10

Import duty

• Average rate: 4.3%

Applied to the CIF value of the order

Avergae duty rate

The average duty rate for imports is 4.3%.

• Duty calculation: CIF x duty rate

CIF value and example

Japan has a unique way of assessing the CIF value for B2C shipments. The CIF value must be determined before duty, tax, or order totals can be accurately calculated.

B2B SHIPMENTS

For B2B shipments, the CIF value is calculated using the standard method as follows: Cart value + Insurance + Shipping cost. Below is an example of a B2B shipment. Although all cost elements are the same value as those for the B2C shipment, see how the total differs due to the difference in how the CIF value is calculated.

Example order total cost calculation:

• Cart value: 24,000 JPY
• Insurance cost: 140 JPY
• Shipping cost: 2,900 JPY
• Duty rate: 4.3%

1. First, you must determine the CIF: Cart value + Insurance + Shipping cost = CIF.
   • 24,000 JPY + 140 JPY + 2,900 JPY = 27,040 JPY
2. Second, determine the duty amount: CIF x duty rate = Duty amount.
   • 27,040 JPY x 0.043 = 1,162.72 JPY
3. Next, calculate VAT: (CIF + duty amount) x .10 = VAT.
   • (27,040 JPY + 1,162.72 JPY) x .10 = VAT
   • 28,202.72 JPY x .10 = 2,820.27 JPY
4. Finally, calculate the order total: CIF + duty amount + VAT = Order total.
   • 27,040 JPY + 1,162.72 JPY + 2,820.27 JPY = 31,022.99 JPY

B2C SHIPMENTS

The CIF value for B2C shipments is calculated as follows: (Cart value x .60) + Insurance + Shipping Cost. Below is an example of a B2C shipment. Although all cost elements are the same value as those for the B2B shipment, see how the total differs due to the difference in how the CIF value is calculated.

Example order total cost calculation:

• Cart value: 24,000 JPY
• Insurance cost: 140 JPY
• Shipping cost: 2,900 JPY
• Duty rate: 4.3%

1. First, you must determine the CIF: (Cart value x .60) + Insurance + Shipping cost = CIF.
   • (24,000 JPY x .60)+ 140 JPY + 2,900 JPY = CIF
   • 14,400 JPY + 140 JPY + 2,900 JPY = 17,440 JPY
2. Second, determine the duty amount: CIF x duty rate = Duty amount.
   • 17,440 JPY x 0.043 = 749.92 JPY
3. Next, calculate VAT: (CIF + duty amount) x .10 = VAT.
   • (17,440 JPY + 749.92 JPY) x .10 = VAT
   • 18,189.92 JPY x .10 = 1,818.99 JPY
4. Finally, calculate the order total :CIF + duty amount + VAT = Order total.
   • 17,440 JPY + 749.92 JPY + 1,818.99 JPY = 20,008.91 JPY

Trade agreements

Japan has at least 21 trade agreements that offer a zero or highly discounted duty rate for goods made in participating countries.

Japan is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), Japan must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

Japan’s Customs authority

Japan Customs

Documentation and paperwork

Always required:

• Bill of lading or air waybill
• Commercial invoice
• The certificate of origin (where a WTO rate is applicable)
• Generalized system of preferences, certificates of origin (where a preferential rate is applicable)
• Packing lists, freight accounts, insurance certificates, etc. (where deemed necessary)
• Licenses, certificates, etc. required by laws and regulations other than the Customs Law (when the import of certain goods is restricted under such laws and regulations)
• Detailed statement on reductions of, or exemption from, customs duty and excise tax (when such reduction or exemption is applicable to the goods)
• Import declarations
• Customs duty payment slips (when goods are dutiable)

Sometimes required:

An import permit is needed for hazardous materials, animals, plants, and perishable items. You must declare what those goods are to customs and get an import permit after the necessary examination of the goods is complete. To import these certain items you need to submit an import declaration. After the required inspection and payment of customs duty and excise tax are fulfilled, you will receive an import permit.

Prohibited, restricted, and controlled items

Government agencies regulate imports.

Prohibited items:

• Narcotics and related utensils
• Firearms, firearm parts, and ammunition
• Explosives and gunpowder
• Precursor materials for chemical weapons
• Germs that are likely to be used for bioterrorism
• Counterfeit goods
• Imitation coins or currency
• Obscene materials or goods that violate intellectual property rights

Restricted items:

• Items related to health, such as medical products
• Pharmaceuticals
• Agricultural products and chemicals
• Meat products
• Endangered species and products such as ivory, animal parts, and fur

Legal regulations for businesses

Qualifications of an originating good

There are many qualifications that a product needs to fulfill in order to be an originating good. These qualifications are important to be mindful of to ensure that goods are not wrongly provided or deprived of preferential treatment.

Duty and tax de minimis

• Duty and tax de minimis: 150 USD
• Duty and tax de minimis for U.S. and/or Puerto Rico-origin shipments: 200 USD

Applied to the CIF value of the order

De minimis value

Duty and tax will be charged only on imports into South Korea where the total CIF value of the import exceeds South Korea’s minimum value threshold (de minimis), which is 150 USD. Anything under the tax de minimis value will be considered a tax-free import, and anything under the duty de minimis value will be considered a duty-free import. U.S.-origin shipments valued under 200 USD will be considered tax-free and duty-free imports.

Import tax

• Standard tax: 10%
• Special excise tax rate: 10-20%

Applied to the CIF value of the order

Value-added tax (VAT)

VAT is charged on the CIF value of the order. This VAT is charged at the general rate of 10%, but in specific cases, there is an excise tax rate charged between 10% and 20%. These specific cases include certain luxury items and durable consumer goods (i.e. automobiles).

Import duty

• Average rate: 8%

Applied to the CIF value of the order

Average import rate

Like VAT, duty is charged on the CIF value of the order, which means that duty is calculated based on the price of the goods, plus the cost of packing, freight, and insurance. The average duty rate is 8%.

Trade agreements

South Korea has at least 17 trade agreements, which include 57 countries. These trade agreements offer a zero or highly discounted duty rate for goods made in a participating country.

South Korea is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), South Korea must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if a country reduces duties by 10% for one country, the MFN clause states that all WTO members will have their duties cut by 10% into that country.

South Korea’s Customs authority

Korea Customs Service

Documentation and paperwork

• Bill of lading or air waybill
• Commercial invoice
• Packing lists (two copies required)
• Maritime insurance
• Import declaration
• Special documentation (for food, agriculture, etc.)

Restricted, prohibited, and controlled items

Prohibited items:

• Pornographic materials
• Subversive material
• Treasonous material
• Books, photos, and film that violate constitutional orders, or might be harmful to public peace and customs
• Items that contain confidential information on government or intelligence activities
• Counterfeit money, banknotes, bonds, and other securities

Restricted items:

• All weapons
• Illegal drugs (opium, marijuana/cannabis, cocaine, etc.)
• Precious metals
• Cultural properties
• Dehydroepiandrosterone (DHEA) hormone drug
• Soil
• Jerky, hams, and sausage products
• Importation of synthetic nicotine for electronic cigarettes
• Goods subject to the laws on the treatment and movement of waste matter between countries
• Plants, fruits, vegetables, and agricultural products
• Animal products, livestock, and animal fodder
• And more

Legal regulations for businesses

Enforcement Decree of the Licensed Customs Broker Act

In January 2022, South Korea implemented the Enforcement Decree of the Licensed Customs Broker Act. The Licensed Customs Broker Act was intended to create an institution for licensed customs brokers to secure the convenience of duty payers and the efficiency of the customs clearance process, which in turn, contributes to the growth of the national economy. This decree has been put in place to provide Licensed Customs Brokers with the necessary materials and abilities to enforce the original law.

Duty and tax de minimis

• Tax de minimis: 0 LAK
• Duty de minimis: 0 LAK

.

Duty and tax de minimis

• Tax de minimis: 0 MOP
• Duty de minimis: 0 MOP

Malaysia implemented the low-value goods (LVG) tax scheme to prevent non-resident companies from having an unfair tax advantage over local businesses, following the example of Australia, New Zealand, and Singapore. The scheme was introduced on January 1st, 2023, and sales tax will be imposed starting from April 1st, 2023, at a rate of 10%.

Duty and tax de minimis

• Tax de minimis: 6000 MVR
• Duty de minimis: 0 MVR

Duty and tax de minimis

• Tax de minimis: 0 MNT
• Duty de minimis: 0 MNT

Duty and tax de minimis

• Tax de minimis: 0 NPR
• Duty de minimis: 0 NPR

Duty and tax de minimis

• Duty and tax de minimis: 1,000 NZD

Applied to the FOB value of the goods

De minimis value

Duty and tax will only be charged on imports into New Zealand where the total FOB value of the import exceeds New Zealand’s minimum value threshold (de minimis), which is 1,000 NZD. Anything under the tax de minimis value is considered a tax-free import, and anything under the duty de minimis value is considered a duty-free import.

Import tax

• Standard rate: 15%

Applied to the CIF value of the order

Goods and services tax (GST)

The standard import GST rate for New Zealand is 15%, which is applied to orders when the CIF value exceeds the 1,000 NZD de minimis threshold. Retailers may be required to register for, collect, and remit GST directly to New Zealand if they exceed the annual threshold of 60,000 NZD in low-value goods.

New Zealand low-value GST law

New Zealand’s low-value GST law regulations impact your business if you import more than 60,000 NZD of low-value goods into New Zealand in a 12-month period. A low-value import is anything sold cross-border with a value less than 1,000 NZD in New Zealand. Once you’ve crossed that threshold, you must register with New Zealand Inland Revenue and begin charging GST on low-value sales into New Zealand and remitting quarterly to the tax authority. If you meet certain requirements, you may elect to collect and remit GST on all goods (low and high value).

Once you surpass the 1,000 NZD threshold within a 12-month period on low-value imports into New Zealand, you will need to collect GST at the time of each sale. Imports to New Zealand from registered retailers are GST-exempt at the border since GST is collected at the time of sale.

• For example, if your business has New Zealand sales, your imports would be broken into two tax categories: those more than 1,000 NZD, and those less than 1,000 NZD. If you sold 100,000 NZD in sales a year, but only 40,000 NZD came from low-value goods (goods valued under 1,000 NZD), that portion of your business would still be tax-free. However, if 60,000 NZD or more came from low-value goods, you would need to register for New Zealand GST, begin charging GST on low-value sales into New Zealand, and remit to New Zealand Inland Revenue quarterly.

Excise tax

An excise tax applies to certain goods imported into New Zealand, such as alcoholic beverages, petroleum products, and tobacco products.

Import duty

• Average duty rate: 2.1%

Applied to the FOB value of the goods

Average duty rate

The average duty rate for New Zealand imports is 2%. The duty range for most imports is 0-10%. Duty is only charged on orders into NZ where the total of the goods in the order (the FOB value) exceeds the de minimis threshold of 1,000 NZD.

Trade agreements

New Zealand has at least 13 trade agreements that offer a zero or highly discounted duty rate for goods made in participating countries.

• There are trade agreements that have completed negotiation but are not yet in force, or are currently undergoing the negotation process.

New Zealand is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), New Zealand must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

New Zealand’s Customs authority

New Zealand Customs Service

Documentation and paperwork

Always required:

• Bill of lading or air waybill
• Commercial invoice

Sometimes required:

• Import permit

  • Needed for certain tobacco products

• Import certificates

  • Required for certain goods controlled by certain government agencies

• Certificate of origin

  • May be required for imports that qualify for preferential tariff treatment

Prohibited, restricted, and controlled imports into New Zealand

Government agencies regulate imports.

Prohibited items:

• Objectionable media
• Certain weapons (e.g. flick knives, butterfly knives, swordsticks)
• Weapons disguised as non-weapons
• Equipment for cannabis or methamphetamine use
• Any item intended to be used for a crime

Restricted items:

• Ivory in any form
• Tortoise or sea turtle shell jewelry or decorations
• Meat derived from whales, dolphins, rare cranes and pheasants, or sea turtles
• Medicines containing musk or derivatives of tiger or rhinoceros
• Carvings or other things made from the bone of marine mammals
• Cat skins
• Taxidermies of sea turtles, all big cats, rare reptiles, cranes, pheasants, bears, antelope, and deer
• Live species
• Carnivorous plants
• Plant and animal items in general
• Crayons and craft paints
• Human ashes

Comprehensive list of New Zealand’s prohibited and restricted imports

Duty and tax de minimis

• Tax de minimis: 0 USD
• Duty de minimis: 0 USD

Duty and tax de minimis

• Tax de minimis: 0 PGK
• Duty de minimis: 0 PGK

Duty and tax de minimis

• Duty and tax de minimis: 10,000 PHP

Applied to the CIF value of the order

De minimis value

Duty and tax will be charged only on imports into the Philippines where the total CIF value of the import exceeds the Philippines’ minimum value threshold (de minimis), which is 10,000 PHP. Anything under the tax de minimis value will be considered a tax-free import, and anything under the duty de minimis value will be considered a duty-free import.

Import tax

• Standard rate: 12%

Applied to the CIF value of the order

Value-added tax (VAT)

An import VAT rate of 12% is applied to imports into the Philippines where the CIF value exceeds 10,000 PHP.

Excise tax

The Philippines levies an excise tax on the following product categories:

• Alcohol products

  • Distilled spirits
  • Wines
  • Other fermented liquor

• Tobacco products

  • Cigars and cigarettes

• Petroleum products

• Miscellaneous rticles

  • Automobiles
  • Non-essential goods
  • Non-essential service
  • Sweetened beverages

Import duty

• Average rate: 5.7%

Applied to the CIF value of the order

Average duty rate

Although the duty rates in the Philippines range from 0-65%, the average duty rate is 5.7%.

Trade agreements

The Philippines has at least 10 trade agreements that offer a zero or highly discounted duty rate for goods made in participating countries.

The Philippines is a member of the World Trade Organization

As a member of the World Trade Organization (WTO), the Philippines must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if one country reduces duties by 10% for a particular WTO country, the MFN clause states that all WTO members will receive the same 10% reduction.

The Philippines Customs authority

The Philippines Bureau of Customs

Documentation and paperwork

Always required:

• Bill of lading or air waybill
• Packing list
• Commercial invoice
• Supplemental Declaration of valuation (SDV) form

Sometimes required:

• Import permit

  • Needed for certain regulated items

• Customs import declaration

  • Needed for certain regulated items

• Certificate of origin

  • Needed for preferential tariff treatment where applicable

Prohibited, restricted, and controlled imports into the Philippines

Prohibited items:

• Written or printed goods in any form containing any matter advocating for rebellion against the government of the Philippines
• Written or printed goods containing any threat to inflict bodily harm upon any person in the Philippines
• Goods, instruments, drugs, and substances designed for producing unlawful abortion
• Written or printed goods, or other representation of an obscene or immoral character
• Any goods manufactured in whole or in part of gold, silver, or other precious metals or alloys where the stamp or mark does not indicate the actual fineness or quality of the metals or alloy
• Any adulterated or misbranded food or goods for human consumption violation of relevant laws
• Infringing goods as defined under the Intellectual Property Code and related laws
• All other goods or parts thereof which importation is explicitly prohibited by law in the Philippines

Restricted items:

• Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, or parts thereof
• Any item with the intended use of gambling
• Lottery and sweepstakes tickets, except advertisements thereof, and lists of drawings therein
• Narcotics or synthetic drugs which are or may hereafter be declared habit-forming by the President of the Philippines, or any compound or preparation thereof, except when imported by the government of the Philippines for medicinal purposes
• Opium pipes or parts thereof
• Weapons of mass destruction and goods (under Republic Act No. 10697 or the Strategic Trade Management Act (STMA))
• Toxic and hazardous goods (under Republic Act No. 6969 or the “Toxic Substances and hazardous and Nuclear Wastes Control Act of 1990”)

Additional prohibited and restricted items information

Legal regulations for businesses

Import regulations for certain product categories

Certain product categories must go through specific import regulations. The categories are as follows:

• Plant products
• Meat and poultry products
• Agricultural products
• Sensitive agricultural products
• Processed food products

Additional import regulations information

Duty and tax de minimis

• Duty and tax de minimis: 400 SGD

Applied to the CIF value of the order

De minimis value

Duty and tax will be charged on imports into Singapore where the total CIF value of the import exceeds Singapore’s minimum value threshold (de minimis), which is 400 SGD. Anything under the tax de minimis value will be considered a tax-free import, and anything under the duty de minimis value will be considered a duty-free import.

Import tax/GST

A 8% GST is levied on imports into Singapore if the CIF value of the order exceeds 400 SGD.

Singapore’s Overseas Vendor Registration (OVR) GST scheme

If you currently import into Singapore, your low-value imports (less than 400 SGD CIF*) are free of import tax. Singapore implemented a taxation system for low-value goods (LVG) on January 1, 2023, but only for larger retailers who exceed the registration thresholds. This guide will explain who is affected by the tax scheme, how the law is changing, how it affects your business, and how to be compliant with Singapore’s OVR GST laws.

*Cost Insurance Freight – the cost of goods plus shipping

Who the changes affect 

Only larger retailers are affected by the low-value tax change. If your business exceeds both of the following thresholds, you will have to register for Singaporean goods and services tax (GST):

• You sell, or expect to sell, more than 100k SGD (cost of goods only) worth of low-value goods into Singapore within a 12-month period…
• …and you sell, or expect to sell, more than 1M SGD (CIF) globally within a 12-month period.

After 1 January 2023

• The 400 SGD de minimis is being removed, but only for retailers who exceed the thresholds above. The de minimis remains for retailers who do not meet the registration thresholds.
• Qualifying retailers must voluntarily register, collect, and remit GST on all orders into Singapore.
• The GST rate will increase to 8% for everyone, not just retailers that exceed the aforementioned thresholds.

*The guidelines outlined in this document only apply to businesses that exceed the above thresholds. If you do not meet the Singapore OVR GST registration requirements, there is no change to your process. The GST rate increase is the only impact on your business.

How to register for OVR 

If you choose to register on your own, you can do it through this online form. This registration process will require a username and password, which you will use to access your account, check deadlines, and remit taxes.

How to handle GST calculations 

There are three ways to determine what is considered low-value. Retailers who have or will reach the threshold must choose one option and use that method for all shipments to Singapore. The three options are as follows:

• Option 1 (recommended): Use an LVG election form and elect to determine if an item is low-value based on the CIF value of the entire order. Orders with multiple items are assessed as one single consignment.
• Option 2: Use an LVG election form and elect to determine if an item is low-value based on the item import (CIF) value. If there are multiple items in an order, each is assessed separately, as an order can have both high and low-value items with this option.
• Option 3: Use Singapore’s default valuation method for determining if an item is low-value—using the item cost only (no shipping included). If there are multiple items in an order, each is assessed separately, as an order can have both high and low-value items with this option.

Reporting and remitting GST to IRAS 

1. Log in to mytax Portal.
2. Follow the guidelines for remittance in the IRAS’ etax guide.

GST return filing and payment is due within one month from the end of each quarterly accounting period. For payments via electronic transfer, you should make the remittance at least one week before the due date to ensure on-time payment.

Only larger retailers are affected by the low-value tax change. If your business sells, or expects to sell, more than 100k SGD (cost of goods only) worth of low-value goods into Singapore within a 12-month period or you sell, or expect to sell, more than 1M SGD (CIF) globally within a 12-month period must a register, collect, and remit GST on all orders into Singapore. Additionally, the 400 SGD de minimis is removed for retailers who exceed the above sales. The de minimis remains for retailers who do not meet the registration thresholds.

Import duty

• Standard rate for most imports: 0%

Applied to the CIF value of the order or based on volume of the goods

Duty rates

99% of imports into Singapore are duty free. Exceptions, due to social and/or environmental reasons, are intoxicating liquor, tobacco products, motor vehicles, and petroleum products. These goods may incur customs and excise duties.

Here are some examples:

(FILL IN IMAGE)

Trade agreements

Singapore has at least 27 trade agreements that offer a zero or highly discounted duty rate for goods made in participating countries.

Singapore is a member of the World Trade Organization

Singapore is a member of the World Trade Organization (WTO). Therefore, Singapore must abide by the most-favored-nation (MFN) clause, which requires a country to provide any concessions, privileges, or immunities granted to one nation in a trade agreement to all other WTO member countries. For example, if a country reduces duties by 10% for one country, the MFN clause states that all WTO members will have their duties cut by 10% in that country.

Singapore’s Customs authority

Singapore Customs

Documentation and paperwork

Always required:

• Bill of lading or air waybill
• Commercial invoice
• Packing list

Sometimes required:

• Customs permit for the following goods:

  • Animals, birds, and their by-products
  • Endangered species of wildlife and their by-products
  • Meat and meat products
  • Fish and seafood products
  • Fruits and vegetables
  • Arms and explosives
  • Bullet-proof clothing
  • Toy guns, pistols, and revolvers
  • Weapons, spears, and swords
  • Films, video, and video games
  • Publications and audio records
  • Pharmaceuticals
  • Medicines
  • Poisons
  • Telecommunication and radio communication equipment

Restricted, prohibited, and controlled items

*Singapore Customs does not differentiate between prohibited, restricted, and controlled goods; they list them together with the corresponding competent authority that governs the goods.

The following are the Singaporean authorities and the goods that they prohibit, restrict, and/or control:

• Singapore Customs

  • Chewing gum (excluding Health Sciences Authority-approved oral, dental, and medicinal chewing gum)

• Arms & Explosives Division, General Licensing Division, Police Licensing & Regulatory Department, Singapore Police Force

  • Pistol or revolver-shaped cigarette lighters
  • Firecrackers

• National Parks Board

  • Rhinoceros horns (worked, unworked, or prepared and any part, power, or waste of such horn)
  • Endangered species of wildlife and products derived from the body of such animals

• Info-communications Media Development Authority of Singapore

  • Telecommunication equipment
    (examples of prohibited telecommunication equipment)
  • Scanning receivers
  • Military communication equipment
  • Telephone voice changing equipment
  • Radio-communication equipment operating in frequency bands 880-915 MHz, 925-960 MHz, 1900-1980 MHz, and 2110-2170 MHz except for cellular mobile phones or such other equipment approved by Info-communications Media Development Authority of Singapore
  • Radio-communication jamming devices operating in any frequency band
  • Obscene articles, publications, and videotapes or discs
  • Seditious and treasonable materials

• Tobacco Regulation Branch, Health Sciences Authority

  • Chewing tobacco (loose leaf chewing tobacco, plug chewing tobacco, twist chewing tobacco, tobacco bits intended for chewing)
  • Imitation tobacco products (electronic cigarettes, vaporizers) and components of imitation tobacco products
  • Shisha
  • Smokeless cigars, smokeless cigarillos, or smokeless cigarettes
  • Dissolvable tobacco or nicotine
  • Any product containing nicotine or tobacco that may be applied topically, implanted, or injected into any part of the body
  • Any solution or substance where tobacco or nicotine is a constituent that is intended to be used with an electronic nicotine delivery system or vaporizers
  • Nasal snuff
  • Oral snuff
  • Gutkha, khaini and zarda

• Health Products Regulation Group, Health Sciences Authority

  • Controlled drugs listed under the 4th Schedule of Misuse of Drugs Regulation

Duty and tax de minimis

• Tax de minimis: 0 USD
• Duty de minimis: 0 USD

Duty and tax de minimis

• Tax de minimis: 0 LKR
• Duty de minimis: 0 LKR

Duty and tax de minimis

• Tax de minimis: 1500 THB
• Duty de minimis: 1500 THB

Duty and tax de minimis

• Tax de minimis: 0 USD
• Duty de minimis: 0 USd

Duty and tax de minimis

• Tax de minimis: 1000000 VND
• Duty de minimis: 0 VND