What are Duties and Taxes?

Learn the fundamental difference between Duties and Taxes when shipping outside the EU and understand when you are obliged to pay them.

The calculation of Duties depends on the assessable value of a dutiable shipment.

For the purpose of this calculation, dutiable goods are given a classification code that is known as the Harmonised System code.

This system has been assigned by the World Customs Organisation and continues to evolve.

Taxes are imposed on goods when they are moved across a political boundary (although some free trade zones exist around the world).

Taxes are usually associated with protectionism, the economic policy of restraining trade between nations.

Taxes are usually imposed on imported goods, although at times may also be imposed on exported goods.

The payment of Duties and Taxes are typically the responsibility of the receiver, although DHL Express does offer the opportunity for the sender to meet these costs at origin.

The sender receives an invoice after shipment delivery for the Duties and Taxes that DHL Express has paid on their behalf at destination, plus a small administration fee.

This is a useful service offered to shipment Receivers for the use of DHL’s credit facility.

The Receiver is able to delay immediate payment of inbound clearance charges, instead of arranging his own bond, cash or credit line.

This service enables a faster clearance of imported non-document shipments.

Unless you have confirmed with DHL that your shipment is non-dutiable you should always include a detailed proforma / commercial invoice if your shipment is being sent outside the EU. If your shipment is a present or personal possessions, please state clearly that it is an unsolicited gift or personal effects, as well as provide a description and value for customs purposes. Customs authorities will usually grant seasonal exemptions for gifts but will always hold shipments with incomplete descriptions or paperwork. This will result in a minimum 48 hour delay for inspections and rectification.
Non-EU countries vary greatly in what goods can be delivered free of duty and tax as gifts or charitable donations. Remember that DHL is obliged to collect such charges from the recipient on behalf of the local government. DHL can arrange for goods to be shipped Delivery Duty Paid with the sender paying the import duty in advance, although there is a charge of for this service (currently €17).
Promotional items such as calendars, diaries and Christmas cards being shipped in bulk to associate companies outside the EU may be treated as dutiable. In such cases a proforma invoice is required and should state 'not for resale' or 'for internal company use only' as appropriate. Small quantities of these goods are generally treated as non-dutiable documents.
Extremely high import taxes may have to be paid by the receiver for gifts such as alcohol and tobacco, even within the EU where exemptions are given for goods for personal consumption only. Alcohol is not acceptable in shipments to the United States and many countries in the Middle East. Elsewhere the exemption limit for personal gifts is often only 1litre of alcohol. Proforma invoices should note the exact contents, number of bottles, volume, % alcohol content and value to allow customs calculate import duty.
Food products may only be imported into the USA by shippers registered with the FDA. Many countries outside the EU request a Phyto Sanitary Certificate for shipments containing smoked salmon or meat products. This should be available from the manufacturer.
Restrictions on other foodstuffs vary greatly outside the EU and you should consult DHL Customer Services before shipping. Always enclose a detailed proforma invoice, particularly if shipping a hamper with a mixture of goods, especially fresh food or alcohol. Customs and Health Authorities often insist on extra inspections, and related delays may be expected, particularly with perishable goods and alcohol.
Always include the fibre breakdown in the description of clothing items, especially to the USA. These descriptions are essential for clearance and the shipment may be subject to a customs delay if not included (e.g. Sweater: Acrylic 10%, Wool 90%). For the USA consignee phone, flight number, arrival date and passport or social security number must be included on shipments of used personal effects. Clothing shipped commercially must include a Manufacturer Identification Code or the manufacturer's address on all paperwork.

Shipments sent from outside the EU may be liable for Customs Duty, Excise Duty and VAT, which DHL is obliged to collect on behalf of the Irish Revenue Commissioners.
Goods are liable to VAT at the same rate as applies to the sale within the State of similar goods - usually 21%. VAT is calculated on the total of :

Value of the goods for customs purposes,
Amount of any other duty or tax applicable,
Any transport, handling or insurance costs between the place of introduction into the EU and the final destination within the State.

Gifts from one private individual to another up to the value of €45 and commercial shipments up to €22 are usually exempt from VAT. Import Duty is generally applied when the value of the contents exceeds €150. In all cases if the shipment is a gift then the accompanying proforma invoice should clearly state 'Gift' along with the usual details.
For one-off shipments where the value of the goods is less than €250 and the Import Duty due is less than €10 then an exemption from VAT and Duty may also be granted to customers who are VAT registered.
Note that these exemptions do not apply to gifts of alcohol, tobacco or perfume where standard charges apply, even when they are received from another EU country.
A copy of the recipient's passport or PPS number is required for shipments of personal effects received in Ireland from outside the EU.
For more information on Irish VAT and Duty please visit the Irish Revenue Commissioner website revenue.ie