Have you ever been surprised with custom fees from the shipping company after importing a product from overseas? You may be wondering why your government is making you pay these fees. There are several reasons why duties are applied.

Reasons Why Countries impose Duties & How Logistic Companies Manage Them

First, countries imposed duties on imported products to protect their own national industries. Some consumers and businesses may purchase products overseas because it is far cheaper than buying it in their own country. To account for that, there are additional fees to discourage imported goods and favor local goods.

Second, duties may be imposed because of imbalanced trade agreements. One trading partner may be on the winning end of the trade agreement. To balance this out, a country may make buyers pay more to account for the imbalance.

For instance, there may be a huge trade deficit between two trading partners. The trading partner on the losing end will add duties to imports to discourage their consumers from purchasing from the trading partner. If you are the one exporting your products overseas, it’s a good idea to work with logistics companies in Edmonton to reduce duties.

By properly labeling the product, providing better valuation, and working with the right broker, you’ll be able to increase sales. Your customers will be more willing to purchase from you again if the cost of customs is kept as low as possible.

Choosing the right logistics company in Edmonton can also ensure that your customers get their products in time. This results in a better customer experience which will contribute to customers wanting to purchase from you again in the future.

Finally, countries will impose duties to support their own economy. They may want to support their manufacturing base to ensure that there are plenty of employment opportunities for their citizens. They also understand that imposing duties means that money will circulate within the country rather than follow outside it.

That’s a general overview on why some countries impose duties on imported products. The duties that are applied will depend on the type of product as well as what country it’s coming in from. You may want to compare the costs between different countries to see which ones are better to import from.

Ocean-Air Freight Ltd is your premier logistics and freight forwarder in Calgary. Since 1990, we have been providing individuals and companies with top-quality shipping and freight forwarding needs. We pride ourselves on our professionalism, experience, and adaptability. We offer a range of services including air, ocean and surface freight for international, cross-border and domestic needs, cargo insurance, import and export needs, documentation, etc. From Europe to North America, we can handle all your deliveries and freight requirements. For the best freight forwarder in Edmonton, Calgary and Saskatoon, contact our logistics company in Calgary today.