Importing products can be a smart way to save money or grow your business. But when you’re not careful, high taxes and fees can quickly erase any savings.
The good news is that there are legal ways to reduce your import costs without breaking any rules.
This article shows you how to legally lower your import taxes, avoid common mistakes, and understand the risks of illegal methods.
Understand How Import Taxes Work
When you bring goods into your country, the customs authority applies taxes and fees. These usually include:
- Import duty (tariff) – based on the product type and its value.
- Value Added Tax (VAT) or Sales Tax – depends on your country’s tax rate.
- Handling or customs clearance fees – charged by shipping companies or customs agents.
The final cost depends on your product’s classification and declared value. If you don’t prepare well, you’ll pay more than necessary.
To check the tax rate of a specific product, you can use your country’s Harmonized System (HS) code.
For example, in the U.S., use the HTS Search Tool: https://hts.usitc.gov/
Benefits of Import Products Without Paying High Taxes
Here are the main benefits of low taxes, explained clearly:
- More Disposable Income: You keep more of what you earn. That means you can spend, save, or invest more.
- Business Growth: Lower taxes reduce costs for companies. This can lead to more hiring, better wages, and more investment in equipment or innovation
- Increased Investment: Investors prefer countries with low taxes. It attracts foreign businesses, startups, and private investment
- Stronger Economy: When people and businesses spend more, demand grows. That leads to higher production, more jobs and economic expansion
- Simpler Tax System: Low-tax countries often use simplified tax codes, reducing paperwork and administrative costs.
- Incentive to Work and Produce: People are more motivated to work harder or start businesses when they know they’ll keep more of the reward.
- Less Tax Evasion: Fewer people will try to cheat the system if tax rates are reasonable.
Use the Correct HS Code
Each product has a specific HS (Harmonized System) code, which determines the duty you’ll pay.
If you use the wrong code, you may pay a higher tax or delay your shipment.
For example:
- HS Code 9503.00.00.90 (toys) may have a lower duty rate than 9504.50.00.00 (video game consoles).
- Some codes qualify for reduced duty under trade agreements.
Always double-check the HS code with a customs broker or directly on your government’s customs website.
Take Advantage of Trade Agreements
Many countries have free trade agreements (FTAs). These agreements reduce or eliminate tariffs for goods traded between member countries.
Examples:
- United States–Mexico–Canada Agreement (USMCA) – Formerly NAFTA, reduces duties between these countries.
- European Union Trade Agreements – Includes deals with Canada (CETA), Japan (EPA), and others.
- ASEAN Free Trade Area (AFTA) – For Southeast Asian countries.
To benefit from these agreements:
- Your product must originate from one of the member countries.
- You may need to provide a certificate of origin.
Check your country’s trade deals on their trade ministry’s website. For the EU, visit:
https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region_en
Use De Minimis Thresholds
Some countries allow small shipments to enter tax-free if they fall below a certain value. This is known as the de minimis threshold.
Examples:
- USA: Up to $800 USD – no duties or taxes.
- Australia: Up to AUD $1,000 – tax-free under certain conditions.
- EU: Very low threshold (usually €22 or less) but VAT may still apply.
To take advantage:
- Keep your shipment value below the limit.
- Split your order into smaller packages when possible (legally and transparently).
But be careful: Customs may flag frequent split shipments from the same sender as tax evasion if they think you’re intentionally trying to avoid import duty.
Declare the Correct Value
Some sellers may offer to undervalue your package to avoid taxes. This is illegal.
If customs inspects your shipment and finds the actual value is higher, you could face:
- Fines
- Seizure of goods
- A criminal record (in severe cases)
Always declare the real commercial value, including shipping and insurance, as law requires.
Import Used or Refurbished Goods
In many countries, used or refurbished items have lower import duties or may be exempt.
If you’re importing for personal use or resale, consider used goods as a cheaper alternative.
Check your country’s policy on importing second-hand goods. Some require special permits or inspections.
Choose Products with Low Duty Rates
Not all products are taxed equally. Some have zero or low tariffs by default.
Examples:
- Books
- Laptops and tablets (in many countries)
- Medical supplies
- Basic clothing items
Before choosing what to import, research which product categories are more tax-friendly in your market.
This helps you avoid high-duty categories like alcohol, luxury goods, or electronics with lithium batteries.
Use a Customs Broker or Freight Forwarder
Customs brokers understand the rules, classifications, and documentation required. They can help you:
- Avoid misclassifying your goods
- Apply for tariff exemptions
- Save on storage or clearance delays
- You pay a small fee, but their expertise often saves you much more.
You can find licensed brokers on your customs authority’s website. For the U.S., check:
https://www.cbp.gov/contact/find-broker-by-port
Set Up a Business Importer Account
If you plan to import regularly, register as a business importer. This can give you access to benefits like:
- Deferred VAT payments
- Lower handling fees
- Ability to reclaim taxes (where applicable)
- Check with your tax office to learn how to set up a business account or get an import license.
Know the Risks of Illegal Methods
Trying to dodge import taxes through dishonest methods may seem tempting, but the risks are serious:
- Undervaluing goods: This is easily caught during random inspections.
- Mislabeling items: A crime in many countries.
- Bribing officials: Leads to severe penalties and jail time.
- Using fake invoices or third-party names: Traceable and punishable by law.
All these practices can lead to customs seizures, fines, blacklisting, and even criminal charges.
The long-term cost always outweighs the short-term savings.
Governments are getting smarter with digital systems and cross-border tracking. Please don’t risk it.
Conclusion
You can import products legally without overpaying on taxes—but it takes knowledge and planning.
Use trade agreements, choose low-duty products, declare your goods correctly, and stay within legal thresholds. Avoid shortcuts that break the law.
If you import regularly, work with a customs broker and get familiar with your country’s regulations.
