19 April 2021 –
More customs jurisdictions are dropping or removing duty and / or GST threshold
What this means is that more imports will:
A. Have to be declared to customs
B. Attract payment of duty and / or import tax than is currently the case.
With the growth of e-commerce there are more smaller shipments, and conversely fewer larger shipments.
If a jurisdiction only taxes the larger shipments then the consequence is a lower tax take overall.
There are many counter-arguments to this, the most widely heard of which is that increasing taxes on products bought through e-commerce channels harms the consumer.
Customs clearance charges outweighing the actual cost of the goods is another argument advanced in favour of higher de-minimis values.
Furthermore, many assert that adding additional clearance processes makes the entire procure to pay operation clunkier and increases turnaround time.
These are powerful arguments in favour of keeping import tax thresholds higher. They are also easily dealt with through the greater use of technology.
TNETS is at the forefront of customs digitisation for freight and e-commerce shipments. Our solutions help remove or reduce customs costs.
Customs tariffs to be expanded even for low-value goods