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Customs Duty & Import Tax: Who Pays? April 02, 2026
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Customs Duty & Import Tax: Who Pays?
by LEI LI
1. Core Question: Who Pays?
It depends on the Incoterms (trade terms) you agree with the factory. For most cases (FOB/CIF/DAP):
- Only when using DDP (Delivered Duty Paid) terms will the factory (MS Makeup) cover these costs.
- You (the brand/buyer) pay customs duty, import VAT, and clearance fees.
2. Key Terms (Simplified)
-
Customs Duty: Tax on imported goods (based on product value/quantity).
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Import VAT: Added tax for import (required by most countries).
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IOR (Importer of Record): Usually you (the brand)—legally responsible for tax payments.
3. Quick Rule
No DDP = You pay. DDP = Factory pays. Keep Incoterms consistent, and you’ll avoid extra costs.
#BeautyBrandTips #CrossBorderEcommerce #ImportTax #CustomsDuty #MSMakeup
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