Global tariff threshold and tax threshold strategy

Understanding and making good use of tariff thresholds and tax thresholds can not only effectively reduce costs, but also improve customer satisfaction and help you ride the waves in global trade.

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Normally parcels are not taxed if the declared value are lower than the tariff threshold of destination. But the case of false declaration is another matter. If your package is taxed, you will have to pay the tax yourself and help with the customs clearance. But this is a rare occurrence, currently only 0.3% of packages are taxed.

Reference table for tariff thresholds：

Country	Amount
American	800 US$
Canada	20C
The United Kingdom	No Exemption quota
Australia	1000 AU$
European union	22 Euros
Russian	1000 Rouble
Japan	11000 Yen
Singapore	300 US$
New Zealand	300 US$
Spanish	30 US$
Switzerland	100 Swiss francs
South Korea	150 US$

Warmly Reminder ：

1.The tariff threshold in Switzerland is 100 Swiss francs and the VAT threshold is 65 Swiss francs.

2.Canada and European countries have strict inspections on parcel. The parcels shipped by Commercial Express like DHL、UPS are more likely to be taxed.

3.Packages shipped by Canada special line, which are more than 5kg or with declared value higher than the tax threshold, may be taxed when they are inspected by the customs. The related cost is about 10usd. The cost is considered as COD cost by the local post office.

Attached : List of taxes collected by various provinces in Canada

Combination of tariff threshold and international order fulfillment	GST	PST	HST
Alberta	5%	-	-
British Columbia	5%	7%	-
Manitoba	5%	8%	-
New Brunswick	-	-	13%
Newfoundland & Labrador	-	-	13%
Northwest Territories	5%	-	-
Nova Scotia	-	-	15%
Nunavut	5%	-	-
Ontario	-	-	13%
Prince Edward Island			14%
Quebec	5%	9.975%	-
Saskatchewan	5%	5%	-
Yukon Territory	5%	-	-

How to avoid paying tax? Below are 3 tips for you： ：

1.The weight of the package is an important criterion for customs office to decide if it is commercial package. Parcels more than 10kg is more likely to be regarded as a commercial package. Therefore when you submit the waybill, please consider the weight of the package. If you choose DHL, the volume of the product is also needed to consider. The charged weight by DHL is based on the volume weight and real weight.

2.The upper limit of package weight is 30kg. If it exceeds 30kg, you can submit separate orders/shipments. It is recommended that each order/shipment should not exceed 10kg.

3.Excessive quantity of the same product is also one important criterion for customs office to decide if it is commercial package. Please try to avoid sending a large quantity of the same product in the same package.

Of course, as you know, we cannot give you a 100% guarantee whether your package will be taxed or not.

Warmly reminder： ：

In conclusion, the weight of each package and quantity of the same product in one package are important criterion for customs office to decide if it is commercial package. Parcels more than 10kg is more likely to be regarded as a commercial package. Additionally, please try to avoid sending a large quantity of the same product in one package when you submit the shipment.

On the other hand, according to the limit of Customs policy, please be carefully if you need to ship foods.

The information above comes from the Internet which is only for reference. Standard guidance is not provided. For more details, please refer to national tariff standards of different countries.

Strategies and suggestions for reasonable tax reduction

Split orders

For high-value goods, consider splitting them into multiple low-value packages for delivery.

Use tax treaties

Through bilateral or multilateral tax treaties, tax exemptions or tax reductions can be enjoyed in certain cases.

Commodity declaration

Reasonably declare the value and category of goods to avoid additional taxes and fees.

Logistics channels

Use tax-free or low-tax logistics, such as direct mail from specific countries to reduce the tax burden.

Combination of tariff threshold and international order fulfillment

Chinadivision's international order fulfillment services cover the entire process from warehousing, sorting, packaging to transportation, helping you optimize your supply chain and ensure that goods are delivered to global customers efficiently and at low cost.

Intelligent warehousing

Chinadivision provides flexible warehousing solutions that support the storage of small products and large items, ensuring that goods are managed safely and efficiently.

Sorting and packaging

Through the warehouse management system, Chinadivision can accurately and quickly sort and pack goods to ensure that orders are delivered accurately and without errors.

Fast delivery

Chinadivision works with major global carriers to provide cost-effective transportation services to ensure fast delivery of goods.

Real-time tracking

Manage your international logistics anytime, anywhere through the 24/7 online dashboard and track the status of your orders in real time.

Why set a tariff threshold?

The purpose of setting a tariff threshold is to reasonably adjust the tax burden and promote trade development. It can encourage enterprises to operate at a moderate scale, reduce the tax burden on small transactions, and reasonably tax large transactions.

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How is the tariff rate determined?

Identify the Harmonized System (HS) code of the product.
Use the HS code to determine the tariff and tax rate applicable to the importing country.
Use the U.S. Census Bureau's Table B search engine to find HS codes.

Professional Chinese Product Sourcing Agent Team

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