How customs and import taxes work

Backing a board game project on crowdfunding platforms like Kickstarter or Gamefound is exciting, but sometimes unexpected costs, like customs fees and import taxes, can dampen the experience. These additional charges vary depending on where you live and the country from which the game is shipped. Understanding how customs and import taxes work can help you avoid surprises and ensure your game arrives without any issues. 

What Are Customs and Import Taxes?

Customs is the government agency that manages the import and export of goods across international borders. Each country has its own rules and regulations for what can and cannot be imported, as well as the fees that may apply.

Import taxes (also called duties, tariffs, or VAT) are taxes imposed on goods that are brought into a country. The amount you pay is typically based on the declared value of the item, and the rate varies depending on the type of product and the country.

For backers of board game projects on platforms like Kickstarter and Gamefound, this means that if your game is shipped internationally, it may be subject to customs inspection and import taxes once it reaches your country.

How Are Import Taxes and Duties Determined?

The customs duties you might need to pay depend on several factors:

1. The Value of the Product: Customs duties are often based on the declared value of the product, including shipping costs. If your game is valuable or if the combined value of your order (including shipping) exceeds a certain threshold, you may be required to pay additional fees.

2. The Type of Product: Different types of products are classified under specific categories, each with its own rate of duty. Board games fall into a specific category that may have a lower or higher duty rate depending on your country’s regulations.

3. The Country of Origin: Some countries have trade agreements that can reduce or eliminate import duties for certain products, depending on where they originate. These agreements may also influence the customs duties you’ll be charged.

4. The Shipping Method: Faster shipping methods, such as expedited shipping, can affect how customs handles your package. While expedited methods might lead to faster delivery, they may also require faster processing of any taxes or duties.

Do I Always Have to Pay Import Taxes?

Not all backers will be required to pay import taxes. This depends on the customs regulations of your country, the value of the product, and whether it falls under any exemptions or thresholds. For example, many countries have a de minimis threshold, which is a value below which no customs duties are charged. However, if your order exceeds this threshold, import taxes and duties will likely apply.

Will I Be Notified of Customs Fees?

Yes, if your package is subject to customs duties or taxes, you will typically be notified by the shipping carrier (e.g., UPS, FedEx, DHL). The carrier will contact you to inform you of the additional charges, and they may require you to pay these fees before delivering the package. If you do not pay, your package could be delayed, or it may not be delivered at all.

How Much Will I Have to Pay?

The exact amount of import taxes and duties depends on several factors, including the destination country, the declared value of the product, and the category under which the product is classified. Here are some general guidelines:

• European Union (EU): Customs duties and VAT (Value Added Tax) are applied to orders over a certain value (typically €22). VAT rates vary by country, generally ranging from 17% to 27%.

• United States: The U.S. has a de minimis threshold of $800, meaning most goods under this value are exempt from duties. However, even if no duties are applied, you may still be required to pay sales tax.

• Canada: Canada charges customs duties and taxes on products with a value over CAD 20. Rates vary based on the product type and the province.

How Can I Avoid Surprises?

To avoid unexpected customs fees, take the following steps:

1. Research Your Country’s Customs Policies: Each country has different rules regarding import taxes and the thresholds above which duties apply. Check with your local customs agency to understand the specific regulations.

2. Accurate Product Declarations: The shipping company will need to accurately declare the value and contents of the package on the customs form. If the information is incorrect, it could lead to delays or extra charges. Be aware that your package may be delayed or returned if the customs declaration is inaccurate.

3. Track Your Shipment: Once your board game is shipped, use the tracking information to monitor its progress. This can give you an idea of when to expect it, and if customs fees are due, you will have time to prepare.

4. Prepare for Possible Fees: It’s a good idea to budget for customs duties or taxes, especially if your board game is being shipped internationally. If your country charges import taxes, it’s better to be prepared to pay them when the package arrives.

What Happens If I Don’t Pay the Fees?

If you choose not to pay the required customs fees, your package may be delayed, returned to the sender, or even destroyed by customs. In some cases, the package may be held indefinitely until the duties are paid. It’s important to address any customs charges promptly to avoid these issues.

Conclusion

While customs and import taxes can seem daunting, understanding the process can help you avoid surprises and ensure a smooth delivery of your board game. Whether you back a campaign on Kickstarter or Gamefound, be sure to research your country’s customs rules, track your shipment, and budget for potential fees to ensure your reward arrives without any issues.

If you have any questions about your specific order or need more information about customs in your country, feel free to contact us or consult your local customs agency.

Enjoy your game!