When you import packaging from any vendor, you need to ask for the shipping options whether they are tax and duties-inclusive or not. The all-inclusive shipping option saves your customs fees because your vendor takes responsibility to deal with it.
Read our blog which is a handy reference on how much you need to pay for customs fees to import cardboard packaging from Pakistan.
US customs impose a tax when an importer crosses a value of $800 USD for imported goods. All the goods below this value are duty-free. According to the Harmonized Tariff Schedule, the HS codes for paper and other cardboard packaging are:
HS 4819.10.00 Cartons, and boxes of corrugated material
HS 4819.20.00 Cartons, and boxes of non-corrugated material
The percentage of customs duties depends on the declared value of imported goods that will be mentioned on the commercial invoice issued by the suppliers. For entrance into the US territory, goods must be declared within 15 days before leaving a foreign trade zone. It is necessary for the importer to prepare a declaration about the list of goods, their origin, and value. It will be evaluated by the Customs and Border Protection (CBP) team in order to release it.
In the Australian tax setup, Pakistan lies in the category of a developing country and is treated according to DCS (developing countries) rates of duty. For importing cardboard boxes, you need to pay in compliance with general custom rates that are equal to 5% of the value of imported goods.
When the value of the goods is above AUD 1000, you need to submit a declaration form (B650) to clarify the paid duty, and services tax applied on it. On the flip side, the Australian government only charges goods and services tax on goods valued below AUD 1000.
Canada doesn’t charge any tariff on imported goods from North American countries because they fall under the mutual agreement of NAFTA (North American Free Trade Agreement).
All other items including packaging boxes required to pay a 5% duty on imported goods. As per Canadian policies mentioned under section 47 of the import duties schedule, zero percent tax will be charged from the countries declared as Most Favored Nations by Canada. Pakistan does not fall on the list so importers will be levied with a 5% tax.
There are 27 Countries in the EU and every one of them imposes a value-added tax (VAT) when the value of imported goods reaches the threshold value (10-22 euro) set by the destination country. It’s necessary for the importers to prepare a declaration that imported goods in order to VAT, excise duty, and general pay import duty.
EU uses CN (Combined Nomenclature) for the classification of goods. The code comprises eight digits that include six digits of HS code and two-digit CN subheading, for boxes, the CN code is 48191000. You can determine the value of VAT by looking at the CN code only.
Mexico set the value for charging VAT at $50 USD, and some Latin American and North American countries are exempt from the figure only. Normally the import duty in Mexico varies from 3% to 20% while boxes with the HTS code of 4819 levied 3.3% of duty.
In South Korea, the value of imported goods reaches the threshold point of 150,000 KRW, you need to pay 10% of Value Added Tax (VAT). Customs will release your goods within 15 days after paying the duties. For preserving the best interests of importers, the Korean government gives them an option to voluntarily declare the duty base and the traffic rates of imported goods.
As an importer of packaging boxes from Pakistan, it’s critical for you to know the policies of your government. Every country has separate codes for custom packaging boxes as the EU uses CN code and the US employs the HS code. When you have a clear idea about the codes and duties, it will help you to determine the end price of imported goods easily. It’s also important to communicate with your packaging manufacturer and supplier because some of them offer free shipping and pay duties themselves.
inquiry@kolaxoprint.pk
