What are duties and taxes?

Duties and taxes are set and charged by the authorities and FedEx applies the rates set by the authorities in the customs declaration.

Duty is a type of tax charged on products being shipped across international borders and is controlled by each country’s customs authorities. The purpose of duty is to ensure the cost of imported goods is the same cost as those produced locally to keep competition fair.

One of the most common taxes is Value Added Tax, which is charged on goods bought and sold for use or consumption in a country. It may be charged at the moment of importation or at the moment of sale in the origin country.

Tax can be referred to differently depending on the country –  for example, VAT (Value Added Tax) in the U.K., GST (Goods and Services Tax) in the U.S., TVA (Taxe sur la Valeur Ajoutée) in France, BTW (Belasting Toegevoegde Waarde) in the Netherlands and EUSt (Einfuhrumsatzsteuer) in Germany.