What customs duties and taxes will I owe when shipping from USA to the Ukraine?
Ukraine Duty
Customs duty is calculated based on the HS Code, which is an international system for classifying goods for trade. Different products have different duty percentages, generally ranging from 0-12%, determined by Customs. You’ll pay this percentage on the total value of the goods.
So let’s say your shipment is worth $10,000, and your product is taxed for duties at 10%. Your duty amount is $1,000.
VAT
VAT is calculated based on the cost of your goods, plus the cost of shipping them, plus duty. The standard VAT rate in Y is 20%.
So for your $10,000 shipment that cost $1,000 to ship, you’ll pay: 20% of (10,000+1,000+1,000) = $2,400.
How the Customs Process Works
When goods arrive at port, customs officials will first check to make sure all your paperwork is in order, and then calculate the amount of duties owed and collect payment. After payment, goods will be released.
To handle customs clearance, you can hire your own broker, or use the brokerage provided by your freight forwarder. If you book with us, you can use our brokerage services as well.