We are a UK private limited company who export from India direct to our customers in the UK, we are now looking to export from India into the US.
My question is regarding the import duties and taxes that are payable on items imported into the US from India.
I understand that I will be required to find the HTC codes for my products but what it not clear is whether in addition to these duties there will be any VAT or other taxes and at which point they are required to be paid (i.e. above $200USD - which I have read in one or two of the US Govt websites, but seeking confirmation of this).
To give a more concrete example I will describe the overall example we have in the UK, we pay on the behalf of our customers here in the UK the duty rate of lets say 5% on CIF (Cost (of the goods), Insurance & Freight) then on top of this the 20% VAT rate. However this is only relevant when the cost is above £15.
Cost of product £ 950
Cost of Freight and Insurance £ 50
Cost, Insurance & Freight Price (CIF) = £1000
If Import duty rate is 5%
Delivered Duty Paid Price (DDP) = £1050 (i.e. 5% of £1000)
Add VAT at 20% of DDP Price = £1260
Are there similar requirements in the case of importing to the US or is it more simply the duty rate applied to products above $200USD?
Note: We are not looking to incorporate within the US.