meet Sam Sam is known through the

community for his homemade barbecue

sauce and he has recently started

selling it after numerous requests so

far business has been great for Sam he's

getting lots of orders and making lots

of cash with a goes up some is in search

of a new blender which will help him to

make lots more of his barbecue sauce

even faster and he is from one online

for two hundred dollars he wants to

purchase it online a ship it to Barbados

but he wonders how much import duty a

van he would need to pay so what's

important you important to D is a tax

collected on imported goods by the

barbarous customs these duties are

expressed as percentages and vary based

on the item the import duty or a

household blender is 20% imported is

calculated based on the cost of the item

pasta cargo insurance plus the amount

painter the item shipped to Barbados

thus known as the CIF value

let's help Sam out now with calculating

the amount of import duty he will have

to pay Sam's blender costs $200 and he

thinks he will ensure its value for

premium of $10 in case of any damage and

then he's been asked to pay $75 in

shipping that works out to a CF value of

285 US dollars which converts the 570

Barbados dollars using the customs

exchange rate of one US dollar equals to

Barbados dollars since the import duty

rate on the blender is 20% the Duty is

calculated therefore at a hundred and

fourteen Barbados dollars

but what about the fact that you have to

pay value-added tax is a percentage

charge after all of the costs have been

added together so you must always

remember to add what he paid for the

item what appeared to have it shipped

what'd he pay to ensure it now what do

you have to pay for import duty before

he calculates the value-added tax

so in Sam's case the amount of VAT will

be calculated based on a CF value and a

duty amount which works out to 684

barbatus dollars at a standard VAT rate

of 17.5% the value-added tax amount will

be a hundred and nineteen dollars and

seventy cents barbatus so when some

splendor riches barbarous in order for

it to clear customs he will have to pay

a duty of a hundred and fourteen

barbarous dollars and a value-added tax

of 119 dollars and seventy cents but

here is a tip facade

since the Judy amount is charged on the

CAE F value and the cost of the blender

and the insurance remains the same can

you see that as the amount of free

increases so too will the amount of

Judea hence the amount of that let's say

Assam decided that he wanted to have his

blender shipped to Barbados a lot faster

and had been asked to pay a hundred US

dollars in shipping instead of the $75

mentioned earlier the caf value would

increase to 620 Barbados dollars and

therefore the import duty would increase

the 124 barbarous dollars and the value

added tax would increase the 130 dollars

and 20 cents so let's compare if some

page 74 US dollars to have the blender

ship to Barbados he would be a hundred

and fourteen dollars in Judea on the

other hand if we use the higher shipping

cost to get it quicker his duty would

increase 124 dollars similarly with a

freight amount of $75 the fat on his

import is 119 dollars and 70 cents which

is less than the hundred and thirty

dollars and 20 cents he would pay

in fact if he used the faster mode of

shipping which cost him $100

therefore is very important that Chuck

Sam chooses the most economical shipping

modality in order to maximize his

savings so look who's smiley no some

fully understands how to calculate

import Julian but even before he makes

his purchases so not only can anybody

need products from around the world he

can know budget properly and protect his

money

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