Paying Customs Duties and Taxes
A. What kind of taxes must be paid to the Customs Authorities before the goods are handed over to legal entities and individuals?
. Well, the taxes that must be paid on importation include as a rule customs duties, value-added tax and some special import taxes.
A. How can I know the rates of customs duties?
B. Customs duties for all types of goods are printed in the Customs Tariff which is available in bookshops.
A. What is ad valorem duty and how is it calculated?
. Ad valorem duty is a tax charged as a percentage of the value of the goods, as distinguished from a fixed duty or tax. Calculation of ad valorem duty is based on the GIF value of goods, that is on cost, insurance and freight charges. Note, that freight charges should always be included in the customs value.
A. I see. And are all imported goods liable to VAT?
. Most of them, there is only a small number of exemptions. The tax rate is a fixed percentage of the customs value plus any customs duties and taxes collected by the Customs on importation.
A What does a special tax mean?
B. This is a kind of tax to which only certain types of goods are subject.
A How are tax rates settled?
B. Tax rates are decided by the Government Authorities, each year in connection with the passing of the Budget. Tax rates can be changed from year to year.
6. Explain the meaning of the following terms in English:
ad valorem duty; GIF; a tax rate; a cost; freight charge; to be liable; a special tax; the Customs; a fixed duty
7. Make up sentences of your own to illustrate the meaning of the following terms:
ad valorem duties; value-added tax; special import taxes; freight charges; the Customs Tariff
8. Give a free translation of the following text in English in the form of a dialogue between a customs official and an interviewer. Work in pairs:
, 1- . . , , , . , , . , . , , . , , , (consumer demand). . , , , , , .
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, . , (duty free import) $ 20 000. , 60%. 30%. . , , . .
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. , , - . - , .
WRITING PRACTICE
Despatch of Goods: Packing and Marking
Nothing is more infuriating to a buyer than to find his goods damaged or partly lost on arrival. The buyer has a right to expect his goods to reach him in a perfect condition and the seller has to organize the despatch of goods in such a way that the problems which might occur during the transit should be as less serious as possible. The important assets1 of export distribution are packing and marking.
Packing is intended to protect goods from all types of different hazards. Cargo in transit2 may be threatened by natural phenomena or by man-made problems which include pilferage. The damage to a consignment of goods may also be caused by its proximity to another shipment. So the general aim in all packing is not only to make the goods secure during the journey, but at the same time to make the package as small and light as possible. Transport costs on land usually depend on the weight but on the sea the size of the package is also significant.
To handle the problems that face export despatches, in many large export firms special departments for export packing have been established and the whole problem is under regular control. They also may employ a forwarding agent3 to do packing for them.
The marking of goods is very important because an unmarked consignment4 may be mislaid at some stage. Even worse, the unmarked goods become practically untraceable5. At the same time, marking should not reveal any excess information about the contents of the goods in order to avoid the risk of theft.
For correspondence, the following specialized terms of packing containers are useful to know:
| bag (), | case ( , ) |
| bale (, ), | crate ( ), |
| barrel (, ), | container (), |
| box ( ), | drum ( ), |
| bundle (, ), | sack (), |
| carboy (, ), | tin/ . n ( |
| carton ( ), | , ). |
There are three principle types of marking, which are usually done by paint or ink through a metal stencil6 on export packages:
(a) The consignees own distinctive marks, which are registered and play the role of identification. These marks, including the name of place of destination, serve as the address on an envelope.
(b) Any official mark required by authorities of the country of export or import. Some countries require the name of the country of origin of the goods to be marked on each package, others - weights and dimensions7 or both.
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(c) Special directions or warnings. Here you will find some special instructions regarding manner of handling, loading, lifting and various warnings both for the owners and the carriers benifit8.
Below are the most widespread examples:
| Handle with care | ! | ||
| Glass - with care | , ! | ||
| Acid - with care | , ! | ||
| Fragile | , ! | ||
| To be kept cool | |||
| Use no hooks | |||
| Stow away from heat | |||
| Keep dry | |||
| Do not drop | |||
| Do not stow on deck | |||
| This side up | |||
| Open this end | |||
| Lift here | |||
| Perishable | |||
| Inflammable | |||
Warnings and directions may be also represented by stencilling symbols that are understood by speakers of any language. For example:
