1. Customs Terminology - Internal Deck

2. What are duties & taxes and when do they apply?
Almost all shipments crossing international borders are subject to the assessment of duties and taxes imposed by the importing country's government. Duties & taxes are imposed to generate revenue and protect local industries against foreign competition or both.
GOODS
DUTIES (only applies to goods (*))
Apply only on the value of goods X% on $155.50
Calculations depends on the assessable value of the dutiable shipment (HS code of the product)
Worldwide standard defined by “World Customs Organization”
(*) In the EU: value of the goods + Insurance and freight costs (CIF)
SUBTOTAL $155.50
TAXES = VAT = GST (goods & service tax)
A VAT is a general consumption tax assessed on the value added to goods and services Apply on the value of the goods + the transport/shipping costs + insurance or additional freight and duties which apply (e.g. y% on (value goods ($155.50) + shipping ($21.99) + Duty (x))
Imposed on goods when they are moved across a political boundary (although some free trade zones exist)
Taxes can be different per country/state/region
SHIPPING
Duties = The calculation of duties depends on the assessable value of a dutiable shipment.
Dutiable goods are given a classification code = Harmonized System code (=HS code). This system has been assigned by the World Customs Organization.
HS code has 10 digits, to ensure harmonization, the contracting parties must employ at least 4- and 6-digit provisions, international rules and notes/.
Taxes (VAT or GST = goods & service tax) are imposed on goods when they are moved across a political boundary (although some free trade zones exist around the world).
A VAT is a general consumption tax assessed on the value added to goods and services. Because this is a tax on consumer expenditure, businesses that are VAT-registered and fully taxable do not bear the final costs of VAT. Every member state of the European Union (EU) has a VAT. A VAT is typically assessed on the "duty paid value" of the goods (which equals the cost of the goods, insurance and freight (CIF) plus duty). 
Taxes are usually imposed on imported goods, although at times may also be imposed on exported goods.
Taxes are different per continent/state/country/region
Who is responsible for the payment of D&T: The payment of Duties and Taxes are typically the responsibility of the receiver but their exist products where also the merchant can take up this responsibility
SUBTOTAL $21.99

3. Customs Terminology General Customs terms 1 Postal clearance 2
Postal operators member of the UPU and using pure postal networks e.g. EMS/EPG/Prime,… use specific postal documents CN22/CN23 for performing the customs clearance of goods. 2
Freight clearance
For non-postal shipments, general terms for import and export clearance apply. Following information is always requested
Description of the goods + HS code (can be provided by LTS if needed)
Origin of the goods
Value of the goods
Commercial Invoice
Origin & destination country for shipping 2a
Bulk clearance
BULK CLEARANCE REFERS TO CONSOLIDATED, FREIGHT IMPORTS.
This is done for clients to consolidate shipments and to allow lower overall costs for clearance. 2b
Clearance 1by1
CLEARANCE 1BY1 REFERS TO AN INDIVIDUAL CLEARANCE PER SHIPMENT
Clearance is always done in name of the receiver of the goods Both B2B and B2C are possible

4. Customs Terminology General Customs terms DDU/DAP DDP
DELIVERY DUTY UNPAID/ DELIVERED AT PLACE
The seller/ supplier pays all expenses (e.g. shipping fee, handling, …) other than the import duty or tax for the given merchandise at the country of import
The buyer (=receiver) is liable to pay the import duty, taxes and clearance fees at the destination. He will have been charged at check-out by the seller the value of the merchandise & shipping costs
DDP
DELIVERY DUTY PAID
The seller/ supplier pays all expenses (e.g. shipping fee, handling, …) including import duty or tax for the given merchandise and is liable for these D&T
The buyer at checkout will pay to the seller the value of the merchandise & shipping costs and also the import duty, taxes and clearance fees which apply.

5. Our solutions per type of clearance
Shipping paper via the postal network
Volumail
Volumail (Sorted T&T)
Volumail Registered
Direct Mkt Mail
Easy Response
ERS
Postal clearance
Shipping Goods
Via postal network
MiniPak
MiniPak (Sorted T&T)
MiniPak EU
MiniPak Scan
MiniPak Sign
MaxiPak
ERS+
Always DDU shipping outside Europe
Attention - different - Bulk Clearance
MiniPak EU: APAC into EU = DDP (<22euro = Low value no D&T to be paid by end-customer)
MaxiPak from US (via UK LTS – clearance into Europe)
MaxiPak/MiniPak Sign from APAC – not existing. Only YanWen & SFC perform own clearance at UK and depose at EMC (like EU client)
Shipping Goods/paper
via alternatives
ADS Mail (MSI)
All parcels sent via alternatives
Atlas
Freight clearance
Fulfillment
All solutions shipping
B2B Clearance

6. Customs Terminology General Customs terms HS code + why use it?
“HS” = HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM
The HS is the international standard developed by the WCO (World Customs Organization) for reporting goods to customs and other government agencies. Each product has a specific HS code (unique number to identify the type of goods)
HS codes are used for the
The assessments of D&T
Identification of regulated or prohibited goods
Verifying general compliance with Trade Regulations
HS code structure
The first 6 digits of the HS code are common to all countries.
Each country is permitted to add additional numbers to suit its own tariff and statistical needs, creating 8, 10, and sometimes 12 digit national codes.
Example
Cotton ‘t shirt :
Soft Plastic mouse pads for working at a pc:
A plastic phone cover for iphones:

7. Provincial Sales Taxes Harmonized Sales Taxes
Customs Terminology
Consumption Taxes
PST
Provincial Sales Taxes
Tax levied by province
GST
Goods & Services Taxes
Value-added tax levied by the Federal Government
HST
Harmonized Sales Taxes
Value-added tax which is a combination of the PST and GST used in specific provinces. This tax is collected by the Canada Revenue Agency which then remits the appropriate amounts to the participating provinces.
VAT
Value-Added Tax
VAT is a general consumption tax assessed on the value added to goods and services

8. (Cost, Insurance and Freight)
Customs Terminology
Customs Value: Valuation Methods
CIF
(Cost, Insurance and Freight)
The import duty and taxes payable are calculated on the complete shipping value, which includes the cost of the imported goods, the cost of freight, and the cost of insurance. 
CIF is used in the EU
FOB
(Free on Board)
The import duty is calculated exclusively on the value of the imported goods.
FOB is used in Canada