Basic knowledge of Customs Duty/Tariff

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Customs duty is an essential part of a trade. Different duty rates can make your business unviable, and you can also use the system to reduce the duty. It is important to understand the basics of duty so that you can make advantageous trade deals.

Contents
00:00
00:07 1. About Customs Duty
00:32 2. What is Customs Duty ?
01:50 3. How is the rate of Customs Duty decided ?
02:00 4. About HS CODE
03:05 5. Types of Japanese Customs Duty Rate
03:33 6. Customs Duty is based on CIF price
03:47 7. The importance of the origin of the products
04:28 8. The process of Customs Duty Payment
05:45 9. If the declaration is not correct ?
06:05 10. In case Customs Duty is exempt
06:21 11. Need to make the declaration of the specific type
07:21 12. Let's summarize Today's Topic !

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★Logistics Manual for Beginners★
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【Profile】
Shinya Iino

15 years experience in business development in Asia and South East Asia. Marketing and Sales specialist in especially Logistics field.

Over 5,000 TEU Monthly volume for export and import in our Group company in Thailand.

・Established Forwarding Company in Thailand.
・Achieved THB 7.5 million ordinary income in the first year.
・Management and Training Thai staffs with Japanese hospitality style.
・Strong communication skill with Japanese, English and Thai language.
・Succeed in expanding our business to the total logistics provider.

[logisticsyoutuberiinosan]

If you want to learn this content more clearly, please check this link.

[jeromeescoton]

This is I've been waiting thankyou mr inno 😊

[thecustomsshow]

Nice video. It's a bottom line for business and there are many advances and changes in different regions. The EU has just launched a new version of their Import Control System, which importers/ exporters should be aware of!

[joshSmacknMouths]

Very informative easy breakdown. Much thanks.

[AnujSharma-wtbw]

1 what is customs duty
2. Main purpose of customs duty
3. Prefential rate or sanctions(high rate)
4. How rate is decide
5. Custom tarrif schedule
6. Valuation
7. Origin

[isabellal]

The duty amount depends on the import country’s incoterm definition, it’s not always CIF. If it’s a FOB country, the duty will be imposed on FOB price. If it’s a CIF country the dutiable value is CIF.

[MuhammadIqbal-fvol]

I as student logistic and supply chain management i feel easy to understand and i can get more info

[jimmylee]

Based on US and Canada customs regulations, Customs duty is deceided based on the price of FOB, not CIF. Ocean freight, insurance charge and quanlified domestic inland freight or charges, the charges of instruments of international trafic(IIT) should be excluded from the Customs value（Entered Value). Many customs brokers and freight forwarder including this video misunderstood the incoterm and Custom value. Please let me know if you any questions or further information.

[legiang]

Your sharings are very helpful. Thanks a lot.

[TrangNguyen-ddes]

Thank you Inno san, your videos are very nice and helpful!

[nouransheriff-gljq]

Customs duty is a global tax on imported goods to protect domestic industries. HS codes classify products, and each country has its own import tax rates. Proper customs declaration is crucial to avoid additional taxes on under-reporting.


Key moments:
00:00 Customs duty is a tax imposed on imported goods by a country to protect domestic products and regulate market competitiveness. The rate of customs duty is determined based on the Harmonized System code, with different rates for each importing country.
-Purpose of customs duty is to safeguard domestic products and industries from cheaper imports, ensuring fair competition in the market.
-Customs duty can be used as a tool in trade and foreign policy, imposing tariffs or sanctions on imported products based on international relations.
-The rate of customs duty is decided using the Harmonized System code, with specific rates for each product category and importing country.
03:25 Customs duty calculation is complex, involving factors like product origin and price. Preferential tax rates and exemptions can significantly impact the amount owed, requiring accurate declaration and judgment for payment.
-Factors like product origin and price influence customs duty. CIF price, transportation costs, and origin impact duty calculation.
-Preferential tax rates and exemptions based on trade agreements can affect the amount owed. Correct declaration and proof of origin are crucial for payment.
-Different types of customs duty rates exist, including basic and preferential rates. Understanding laws and policies is essential for accurate payment calculation.
06:53 Customs duty is a global tax applied to imported goods to protect industries, with different rates like general, preferential, and conventional tax rates. Accuracy in customs declaration is crucial to avoid additional taxes and impact on importers' costs.
-HS code classifies products, each country has its import tax rate, and customs duty rates vary, including general, preferential, and conventional tax rates.
-Completing customs duty declaration accurately is vital during import or export clearance to prevent underreporting errors and additional taxes affecting importers' costs.
-The importance of paying attention to customs duty to avoid underreporting errors and additional taxes that can impact importers' costs.

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[ScaroMK]

What exactly is a customs stop? My freight forwarder quoted me this, but I thought customs was digitalized now?

[jimmylee]

Why deleted my comment on clarifying CIF or FOB is the base of US/Canada Customs Duty?

[saurabhgolam]

Thanks for your video! is there any "Global Database" where we can find the applicable import duties?

[mcarmenvillarvalverde]

Hi, Iino, thank you for your videos. Do you have any video regarding Special customs regimes?

[mitchpilande]

We pay at the BOC the Vat,
Customs Duties, CDS and IPFS do we need to add those we have paid to the BOC to Landed Cost declared by BOC for the Total Cost of Goods/Sales?

[moneyfool]

Are custom duties and tariffs the same? Well, I read and watch another sources, they are different. Mmhhh.. confused.

[أمجدالصمادي-لر]

Please we need PDF file contain all this information

[WHISTLEBLOWER-ewcj]

Hello can you tell me difference between basic duty vs effective duty ?

[mohammadrafiqulislam]

Thats means local products are less quality than imported one