If you are active in the field of importing and exporting goods, you probably consider the customs clearance cost as one of your main concerns as a business owner. Customs clearance is a complex process that should be carried out by experts in this field. This process also involves expenses that you need to have sufficient information about. In this article from Gezderazi Trading Group, we intend to familiarize you with the factors that affect the cost and the best time to calculate the customs clearance of goods.
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The importance of paying attention to the customs clearance cost of goods
For traders and industrialists, understanding the exact costs of customs clearance is of great importance. Having comprehensive knowledge about these expenses helps them accurately determine the final prices of their goods and ensure the profitability of their trade. Additionally, awareness of the costs associated with customs clearance enables merchants to adopt appropriate strategies, such as obtaining necessary permits in the shortest possible time, determining the precise value and tariff of goods, and planning for clearance when needed.
It should also be noted that the cost of customs clearance directly impacts production costs, the final prices of goods, and the success of business profitability. Therefore, traders and industrialists must carefully calculate these costs and incorporate them into their trade planning to maintain their efficiency and competitiveness.
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How to Calculate Customs Clearance Costs
One of the important factors in international trade is the customs clearance cost, which must be considered when importing goods into any country. The customs clearance cost depends on various factors, which we will explain below:
Customs
The expenses determined by customs for clearing goods are referred to as customs clearance costs. These costs may include import of goods taxes, duties, customs clearance fees, and similar items.
The most frequently asked questions from Gezderazi Trading Group consultants are about how the customs clearance cost is determined and what factors it depends on. In the following, we will provide an explanation on this matter.
The calculation of customs clearance costs depends on several different factors. Some of these expenses are preventable, while others are determined according to the established tariff. In summary, we will explain these costs to you.
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Import Duties
Import duties on goods are determined based on the tariff set forth in the Regulations and Export of goods Book. It is worth mentioning that every year, this book undergoes changes to meet the country's needs and is reviewed by a team of experts from the Ministry of Industry, Mine, and the government. These changes are in line with current requirements and are updated annually.
Regarding import duties, it is important to note that these duties include 40% of the customs value plus trading profit. Additionally, the customs duty to be paid is calculated based on the product's total value, exchange rate, and tariff. This is a highly sensitive and complex matter, and at Gezderazi Trading Group, we handle it with the utmost precision.
Trade Profit
The amount of trade profit is determined annually by the government. In essence, trade profit can be described as a fixed amount received for imports or exports, collected by the customs authority.
Tax and Value Added Tax (VAT)
For a more precise understanding of Value Added Tax (VAT), it's important to note that a 4% systematic VAT is levied (if the importing company is not a creditworthy taxpayer). Additionally, 6% and 9% VAT is calculated in the customs declaration and collected by the customs authority.
Warehousing
Warehousing is another component of the customs clearance cost. Regarding warehousing, it's important to know that when goods are imported into the country, charges are calculated and collected based on factors such as weight, storage days, the value of goods, and more, in the relevant warehouses.
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Customs Duties
There are some additional costs known as customs duties that have an impact on calculating the customs clearance cost. These duties include expenses related to organizations like the Red Crescent, the environment, and more. If we want to provide an exact figure for customs duties, it's important to note that these duties are calculated at a rate of 1% of the value of the goods and are collected from the owner of the goods.
Value of Goods
The value of goods is an important consideration in determining the customs clearance cost. In fact, taking into account various factors such as insurance and the actual price of the goods, a portion of the expenses related to customs clearance must be determined. However, it's worth mentioning that if you want more precise information on this matter, it's best to contact our experts at Gezderazi Trading Group.
Other Factors
In addition to the above-mentioned expenses, other factors such as domestic transportation of goods from customs to their final destination should also be considered. These costs may be calculated based on distance, weight, and volume of the goods and can vary accordingly.
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Taking these factors into account, the customs clearance cost can be calculated. This cost may vary in each case and it's important to calculate it with precision and sufficient knowledge in order to prevent unnecessary expenses.
Final Words
"In this article, we, as the Gezderazi Trading Group, have familiarized you with the factors influencing the customs clearance cost and have explained the appropriate timing for it. If you need consultation in this regard, please contact the phone numbers provided on our website. Our utmost effort is to simplify the process of exporting or importing for you, making it straightforward and hassle-free so that you can achieve profitability in your profession and business with peace of mind.