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"third country duty" and calculating import costs

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  • 04-06-2005 12:52am
    #1
    pwd
    Closed Accounts Posts: 5,284 ✭✭✭


    What is 3rd country duty. I looked up the taric db for import tax on a type of products from the usa and it listed the 3rd country duty as 12.8%. Does that mean that I pay 12.8% of its value when I import it, or that I pay that if I want to sell it to someone in another country or...?

    Am I missing anything in calculating total costs:

    supplier's price +21% VAT +12.8% duty + delivery and storage costs.

    Is it easy to get an importer's licence. Do you need to pay for that on top of the import duty?


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    #2
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    pwd wrote:
    supplier's price +21% VAT +12.8% duty + delivery and storage costs.

    ((supplier's price + delivery costs) + 12.8% duty) + 21% VAT

    Of course VAT isn't a problem for a VAT-rgistered trader.


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    #3
    pwd
    Closed Accounts Posts: 5,284 ✭✭✭pwd


    Thank you. I take it that means 3rd country duty is the same thing as import tax then.
    If I'm not VAT-registered, would I have to pay VAT when I buy it from the supplier, and then add it to the price again when I resell it to a customer? Would it be sensible to be VAT registered even for a small scale/speculative venture?


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    #4
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    You can't charge VAT unless you are registered to collect it. You have to register over certain limits (€20,000-50,000 see www.revenue.ie for the correct threasholds).

    For small turnovers, it usually isn't worth the paperwork unless your inputs have a high rate and your sales a low rate. The only business I know where this works is food (excluding ready to eat / hot foods / restaurants).

    There are a few grouping when it comes to duty

    (a) Ireland
    (b) EU
    (c) Developed countries
    (d) Rest of WTO
    (d) Other countries

    I'm not sure what counts as a "3rd country"


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    #5
    pwd
    Closed Accounts Posts: 5,284 ✭✭✭pwd


    Country of origin/destination United States of America - US (400)
    Description
    No restrictions

    Import
    Third country duty : 12.8 % Regulation/Decision : r2204/99

    That's what it says for the product type on the taric database.


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    #6
    pwd
    Closed Accounts Posts: 5,284 ✭✭✭pwd


    (in case anyone is interested)
    as i understand it, third country duty is the import tax rate applicable to countries that do not qualify for duty free status (some developing countries do)

    edit: oh i think it makes sense now--it's "third country" because it doesn't have eu ststus and isn't a developing country.


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