I am taking goods out of the country and planning to return them
I am taking goods out of the country and planning to return them, do I pay Duty Taxes?
All countries have procedures allowing for the temporary importation of goods for across their borders. Such importations are generally valid for less than 12 months Importers may choose from three options when considering a temporary importation: (1) Duty refund, (2) Temporary importation under bond (TIB), and (3) Carnet.
- Duty refund is the process by which an importer registers the goods at the time of entry, and deposits the applicable duties and taxes. In Europe, duty and taxes range from 20-30%, Australia 50%, China 40%, of the value of the goods. (Check VAT chart for details.) At the time of departure, the exporter presents the goods and appropriate paperwork to a customs inspector. Exporters can expect to receive a full refund of the duties and taxes posted at some future point. (For Europe, refunds are generally made 2-6 months after departure. Payments are made in local currency, e.g., South African Rand.)
- To use a TIB, importers are required to secure the TIB from a customhouse broker at the time of entry into the foreign country. The purchase of a TIB is required for each country visited on every trip. Fees for TIBs vary widely.
- Carnets: May be used for unlimited exits from and entries into the U.S. and foreign countries; are accepted in over 85 countries and territories worldwide; eliminate value-added taxes (VAT), duties, and the posting of security normally required at the time of importation; and simplify customs procedures. Carnets allow temporary exporters to use a single document for all customs transactions, make arrangements in advance, and at a predetermined cost. Carnets facilitate reentry into the U.S. by eliminating the need to register goods with U.S. Customs at the time of departure.