You must be amazed to know the fact that everyone is getting interested in import from China and the reason is profit but do you know that there is import tax which can eat up the whole profit. Well, there are many things to know before getting started with import business. In order to know more, you can check out the import tax and there are many types of taxes charged under it. First of all, you need to do a little brainstorming and find the best product which can be sold at higher prices.
Products in demand are always the first priority. Now, contact with a manufacturer or supplier in China and ask the minimum price. Calculate the tax on product and come up with the basic amount which will be charged as the minimum. This thing will help you know that how much price can be charged to the customer. Is there any profit and if yes, then how much, is some questions to make sure.
Importing Goods At Lowest Price
The minimum price charged by the manufacturer and the tax by the government will matter a lot on your profit. If you are importing something in the USA from China then you will be charged after the 200$ customs value. Well, this is the first tax you have to pay for sure but there are few more types of taxes. Informal imports don’t require any kind of any information but if you are importing goods for commercial purpose then you have to explain and clear it on the import. The import tax is charged on commercial things that’s why you should know about the product you are going to import. If you want to avoid such taxes then you can do it by purchasing lower cost products.
if you are importing something which cost 2 dollars but you have 1000 pieces then the total price is 2000 dollars which are legal under informal imports and you don’t have to mention it in the invoice. On the other hand, the import f same product over 2000$ requires clearance in the invoice. There are many import tax calculator available online and you can check out the costing by filling the information.
Fees Charged On Import
There are many types of taxes and fees charged on imports and this thing doesn’t matter that you have done formal import or informal one. First of all you have to pay import entry fee and then merchandise process fee. Make sure that you clear everything properly invoices because there is fine charged while getting caught doing a fraud by not mentioning anything. As you are going to resell these products this is why you have to calculate the taxes. VAT is additional and this isn’t charged on import in some countries like the USA so you should check it out. Now, you know that import tax decides that how much profit you are going to earn. If you are paying less tax then you are able to get more margins.