What clearance actually costs
Duty is only one line. Import VAT or GST is charged on the duty-inclusive value in most countries, and brokers charge per entry. A 20,000 shipment can easily cost 3,000+ all-in before it reaches your warehouse.
Why import VAT is not a real cost (usually)
If you are VAT/GST registered, import VAT is normally recoverable as input tax — it hits cash flow, not margin. Duty, by contrast, is a permanent cost that belongs in your product cost.
Reducing the bill legally
- Correct HS classification — many products are over-classified
- Free trade agreements and preferential origin where eligible
- First-sale valuation for multi-tier supply chains (with documentation)
- Duty drawback on re-exports
Cash-flow timing
Duty and import VAT are payable at clearance, often weeks before you sell the goods. Model that in your cash-flow forecast — it is a common reason profitable importers run out of cash.
Frequently Asked Questions
Is import VAT recoverable?
Usually yes if you are registered and the goods are for business use; the timing still affects cash.
Do broker fees vary?
Widely — 100–400 per entry is typical, higher with inspections or bond requirements.
Can I clear customs myself?
Technically for some entries, practically no; a broker is cheaper than the mistakes.
Assumptions & disclaimer
Results are estimates for planning. Fee schedules, tax brackets and deduction limits change; confirm current figures with the marketplace, the IRS or a qualified accountant before making decisions. Nothing here is financial, tax or legal advice.
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