We are a UK private limited company who export from India direct to our customers in the UK, we are now looking to export from India into the US.
My question is regarding the import duties and taxes that are payable on items imported into the US from India.
I understand that I will be required to find the HTC codes for my products but what it not clear is whether in addition to these duties there will be any VAT or other taxes and at which point they are required to be paid (i.e. above $200USD - which I have read in one or two of the US Govt websites, but seeking confirmation of this).
To give a more concrete example I will describe the overall example we have in the UK, we pay on the behalf of our customers here in the UK the duty rate of lets say 5% on CIF (Cost (of the goods), Insurance & Freight) then on top of this the 20% VAT rate. However this is only relevant when the cost is above £15.
Cost of product £ 950Are there similar requirements in the case of importing to the US or is it more simply the duty rate applied to products above $200USD? Note: We are not looking to incorporate within the US.
Cost of Freight and Insurance £ 50
Cost, Insurance & Freight Price (CIF) = £1000
If Import duty rate is 5%
Delivered Duty Paid Price (DDP) = £1050 (i.e. 5% of £1000)
Add VAT at 20% of DDP Price = £1260
Thanks
The tariffs for import of goods and products you can find for the most part on the US Customs website:
http://www.usitc.gov/tata/hts/bychapter/index.htm Generally speaking there are no additional federal taxation of goods or services sold in the US. There are certain items like gasoline that do have a federal excise tax but normally these get a sales tax based on the state and/or municipality of where it is shipped to which vary and most of the time is not the responsibility of the seller located outside that locality to collect.