So, you need to pay Import Deposit Fees - Here's how to lower that cost. (2024)

FAQs

How to avoid import charges? ›

You'll need to pay customs duty (or import tax) on any goods you move across the US border from other countries, though goods from some countries are exempt due to different international trade agreements. The United States Customs and Border Protection (CBP) enforces customs rules.

These include Customs regulations in the given destination, the product category and price, and the shipping method selected. Typically, Import Fees are calculated based on the price of the product after any discounts or promotions are applied, but including shipping costs.

Your item will be returned to the sender if the customs charge was not paid by the “pay by date".

If you do not pay the import fees, which can be more than just duty, but also sales taxes (VAT) and customs brokerage fees, the item will, as you say, be returned to the seller as Undeliverable.

Formal Entries: If your goods are valued at more than $2500, or for commercial textile shipments (clothes/materials) regardless of value, you will be required to file a formal entry, which can require extensive paperwork and the filing of a U.S. Customs and Border Protection bond.

What are these Duty/VAT charges, and why have I been charged? Any shipment with a value greater than the current Customs minimum value threshold can be subject to Import Duties and Taxes.

How much can I import to the USA without paying duty? ›

Thus, any articles imported under this section for personal use with a value of under $800 can be imported duty free, and any articles imported for personal use with a value between $800 and $1800, will be subject to a flat 4% duty rate.

Merchandise Processing Fee (MPF)

US Customs collects this fee on most shipments that enter the country. It's calculated at 0.3464% of the entered value (the cost of the merchandise, as entered on the commercial invoice you provide to your customs broker), with a minimum of $27.23 and a maximum of $528.33.

The first way to avoid duty is to take advantage of Free Trade Agreements (FTA)s, which are agreements between two or more countries that lower the tariffs on goods traded between them. The most well-known of these is the United States, Mexico Canada Free Trade Agreement (USMCA).

If you use UPS Express or Expedited, there are no entry prep fees. These fees are charged by UPS to take your package(s) through Customs. If you can take the package through Customs yourself, you can avoid this fee. To avoid the Entry Preparation Fees, you can take your package(s) through Customs yourself.

Import duties have two distinct purposes: raise income for the local government and to give a market advantage to locally grown or produced goods that are not subject to import duties. A third related goal is sometimes to penalize a particular nation by charging high import duties on its products.

Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise is from an IP. Up to $800 in goods will be duty-free if it is from a CBI or Andean country. Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).