Freight Shipping between US and Norway | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from US to Norway?

Understanding how to estimate duties and taxes when importing goods from the US to Norway is essential for smooth international trade operations. The primary factors that determine the customs duties include the country of origin of the goods, the Harmonized System (HS) code of the products, the Customs Value of the goods, the applicable tariff rate, and any other specific taxes or fees.

The first crucial step you need to take in calculating your estimated duties and taxes is determining the country where the goods were manufactured or produced. This not only helps to establish the true origin of the goods but also sets the groundwork for an accurate calculation of your import costs.

Step 1 - Identify the Country of Origin

You might think pinpointing the Country of Origin is pretty straightforward, right? But it's not just about where the item is coming from, it's a foundation stone in calculating your duties and taxes! Here's why.

First, it helps you secure the correct Harmonized System (HS) code for your product. Every item has its own HS code and you get it from the country of origin. Second, determine precisely what trade agreements are at play. The United States and Norway are part of the EEA, a pact that impacts your duty rates notably. Third, Norway has its own set of import restrictions that are country-specific. Knowing the country of origin simplifies navigating these waters.

Next, it supports you in identifying any preferential rates which can save substantial costs. Finally, understanding the origin sets you off on the right track, avoiding potential customs misunderstandings and delays.

Remember, nothing throws a wrench in your goods' journey faster than incorrect customs information! So, do your homework, check the trade agreements and predetermine the restrictions to move your goods smoothly.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is a universal classification method used for goods in international trade. It's comprised of 6-10 digits and is used to define the type of product for customs purposes. This code not only determines customs duties but also any restrictions or regulations.

So where can you find this indispensable code? Often, the quickest route is simply to ask your supplier, as they’re typically well acquainted with the goods they're importing and the relative regulations. If this isn’t possible, don't be concerned.

We have an easy, step-by-step process for you:

1. Access an HS lookup tool; we recommend using the US International Trade Commission's Harmonized Tariff Schedule tool.
2. Once there, insert your product's name into the search bar.
3. Look in the Heading/Subheading column to identify your HS code.

It's important to note the role accuracy plays when it comes to your HS Code. Selecting an improper code can lead to delays in shipping and cost you additional in potential fines. So ensure you double- and triple-check for accuracy.

Here's an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

When shipping your goods from the US to Norway, understanding your custom's value is crucial. Don't confuse it with the product's value—it's the sum of three different costs.

Initial cost is the product's price when you first got it. Second comes the international shipping expense from the US to Norway—every dollar counts here. The final bit of your custom's value is the insurance cost to protect your shipment.

Together, they form the CIF value—let's illustrate this:

For example, you bought a product for $100 (product cost); shipping to Norway costs $20 (shipping cost), and you paid $5 for insurance. The CIF value, hence the customs value, is $100+$20+$5=$125.

Think of the customs value as the grand total of your international shipping expense, not just the sticker price on the box. It's a three-piece puzzle. Knowing this helps in estimating your custom duties accurately, steering you clear of unexpected expenses.

Step 4 - Figure out the applicable Import Tariff

Import tariffs represent the tax imposed on imported goods, often calculated as a percentage of the goods' total value, including insurance and freight (CIF) costs. This is crucial in international freight forwarding as it may significantly impact the total cost of shipping.

Let's take the example of a coffee machine (HS code: 85167100) being shipped from the US to Norway. To ascertain the specific tariff, you can use the TARIC system – European Customs tool.

1. Input the HS code (85167100) and United States as the country of origin.
2. The tool will return the necessary duties and taxes applied to this particular product, which currently stands at a duty rate of 2.7% (note that rates may vary).

Given that information, if your CIF costs (product cost + insurance + freight) are, for example, $1000, the import duties would then be 2.7% of $1000, equivalently $27. Having this understanding allows you to factor in all associated costs and lessen any financial surprises in your shipping journey.

Step 5 - Consider other Import Duties and Taxes

When you're shipping goods from the US to Norway, it's crucial to understand that besides the Standard Tariff Rate, you can face other import charges based on the country of origin and product nature.

Take excise duties, for instance, which are applied to certain goods like tobacco, alcohol, and certain types of machinery. There's also anti-dumping taxes. If goods priced well below their production value are being dumped into the Norwegian market, these duties are levied to level the playing field.

But, the tax that typically catches importers off guard is VAT (Value Added Tax). In Norway, the standard VAT rate is a whopping 25%. This might come as a shock, especially if you're counting costs down to the last dollar.

Here's a simple formula to get you started: Import Duties = (No. of Units Unit Price Duty Rate) + (No. of Units Unit Price VAT).

Remember, these are just examples and actual rates can vary. Nevertheless, a good understanding of these extra charges will prevent unexpected costs looming over your venture. All in all, forewarned is forearmed!

Step 6 - Calculate the Customs Duties

When importing goods to Norway from the US, your customs duties are calculated based on the value of the goods, transport, and insurance - this total sum is the 'customs value'.

For instance, if you have $10,000 worth of goods, your customs duty might be 5% of that value, so $500 as customs duty.

Now, let's imagine a scenario where the VAT is not considered. This means you solely pay the calculated customs duty of $500.

In a different scenario where VAT is involved, it is generally 23%, calculated on top of the customs value plus the duty. So, in this case, you'd have VAT of $2,415 (23% of $10,500).

Lastly, in a situation where anti-dumping taxes and excise duties apply, they are added to the customs value before calculating VAT. Suppose there's a $200 anti-dumping tax and a $300 excise duty, you'd calculate 23% VAT on $11,000 ($10,000 customs value + $500 customs duty + $200 anti-dumping tax + $300 excise duty), making the VAT $2,530.

Figuring out the right amounts to pay might seem complicated, but don't worry, DocShipper has got you covered. We ensure you won't be overcharged by taking care of every step of the customs clearance process globally. For a free quote in under 24 hours, feel free to contact us.

Bill of Lading

When shipping goods from the US to Norway, your Bill of Lading (BOL) is your golden ticket. This official document solidifies who holds ownership of the goods and is vital during the customs clearance process. Consider it as a modern-day treasure map; it leads your shipment from port to port, ensuring smooth transition. What makes it cooler is the electronic (telex) release feature it comes with. Got an urgent shipment? Swiftly transfer ownership electronically, quick as a flash! It's the same principle for air cargo, but instead of BOL, the Air Waybill (AWB) swoops into action. So next time your cargo’s 'up in the air,' be rest assured, the AWB's got your back. Handle your BOL or AWB with care - they truly are the captain of your cargo ship!

Packing List

If you're shipping goods from the US to Norway, don't overlook the Packing List - this document is the blueprint of your shipment. As the shipper, you need to ensure everything about it is accurate. From the number of packages to the content specifics of each, every detail makes a difference. Consider it a guide map for customs officers, telling them what they'll uncover in your shipment.

For instance, let's say you're sending woodworking tools. Your Packing List needs to spell out every item, right down to the last screw. Whether you're opting for the speed of air freight or the capacity of sea freight, this precision aids in swift and hassle-free customs clearance. No lags, no hiccups. So before you seal those boxes, double-check your Packing List. It's the key to a smooth delivery from the city streets of New York to the Nordic fjords of Norway.

Commercial Invoice

Nailing your Commercial Invoice is key when shipping goods from the US to Norway. It should detail product descriptions, prices, buyer/seller info, and shipment terms. Why is it important? It helps Norwegian customs determine the value of your goods for tax calculations. A tip? Always ensure consistency between the Commercial Invoice and your other documents like the Bill of Lading or Air Waybill. Imagine something like describing your goods as 'artisan ceramic vases' in one document, but merely as 'homeware' in another. This discrepancy could delay your shipment at customs, causing unwanted hiccups in your supply chain. Stay on top of your documents to breeze through customs!

Certificate of Origin

When shipping from the US to Norway, your cargo's Certificate of Origin (COO) is like its passport. This crucial document authenticates your goods, confirming they were truly 'born' in the stated country. For instance, let's say you're shipping high-end denim from San Francisco. Your COO verifies that the denim was produced in the US, helping to clear customs smoothly at the Norway end. Not to mention, if the US has advantageous trade agreements with Norway, your jeans could be eligible for preferential duty rates, slicing a nice percentage off your costs. So, keep in mind, correctly mentioning the country of manufacture in your COO can make all the difference in both seamless customs clearance and your bottom line.

Certificate of Conformity (CE standard)

In shipping goods from the U.S. to Norway, your Certificate of Conformity (CE Standard) is a must-have. Unlike quality assurance, which focuses on process, the CE mark ensures your product meets specific standards for health, safety, and environmental protection. In essence, it’s your product’s passport to enter the European market. Comparably, the U.S. standards might not cover all EU requirements, making the CE mark vital for U.S-Norway shipping. A key step is to verify your product falls under the CE directive and get it certified by an approved body. By doing this, you're ahead of the game in providing consistent quality and avoiding customs hitches.