How to Calculate US Duty
When you bring an item into the United States from another country, including ones as close Canada or Mexico, you often have to pay a duty. A duty is a tax that you're paying specifically because the item was purchased in another country. Most of the time, individuals are permitted to bring goods of a general nature into the United States duty-free up to a certain dollar amount. Anything above that amount -- and anything imported for a business purpose -- will typically be assessed a duty. The precise duty amount for an item will depend on the item's classification, information that is readily available from U.S. Customs officials. Does this Spark an idea?
Instructions
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1
Calculate the total cost of the item you are importing. The item's cost includes the price you paid, plus to the cost of any insurance or shipping.
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2
Locate the "Duty Rate" for the type of item you are importing. You can find the duty rate from U.S. Customs officials at any border checkpoint, or in advance by purchasing a book like the US Harmonized Tariff Schedule. The United States International Trade Commission's Interactive Tariff and Trade DataWeb Internet site usually also contains this information.
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3
Convert your duty rate percentage to a decimal by dividing by 100. For example, if the duty rate on your item is 6%, 6/100 = 0.06.
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4
Multiply the total cost of your item from "Step 1" by the decimal from "Step 3." The number you get as the result is the duty rate you must pay in order to import the goods into the United States.
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Tips & Warnings
It is against U.S. law to import goods that are above the individual import threshold without declaring them to customs and paying the appropriate duty. Illegal importation often carries steep penalties, including imprisonment.
