How to calculate customs duties when importing building materials?
Importing construction materials from Turkey to France is very important in terms of calculating costs correctly and managing the processes completely. In particular, the correct calculation of customs duties and additional costs is a crucial issue for importers. We have prepared a detailed guide for importers in France by calculating the customs duty rate at 10%. In this article you will find cost calculations in the import process, tax rates explained with examples and important tips for creating a correct trade strategy.
What is customs duty and how is it calculated?
Customs duty is a tax calculated on the total import value of imported goods. This value is called the CIF (Cost, Insurance, Freight) value and is made up of the FOB price of the product (product price) + transport costs + insurance costs.
Sample CIF calculation:
– FOB price (product price) 2.000 €
– Freight cost: 500
– Insurance cost: 100
– CIF value: €2,000 + €500 + €100 = €2,600
Customs duty is calculated on the CIF value and the rate depends on the GTIP (Customs Tariff Statistics Position) code of the imported product. Building materials are generally classified under the following GTIP codes
– 2523: Cement
– 4418: Wood building materials
– 6802: Stone and ceramic products
– 7308: Metal building materials
The rate of customs duty for building materials in France is 10%.
Calculation of the duty:
– CIF: €2,600
– Customs duty (10%): 2.600 € x %10 = 260 €
VAT calculation
In France, Value Added Tax (VAT) is levied on import transactions after customs. The applicable VAT rate for building materials is 20% and this rate is calculated on the sum of the CIF value and the customs duty.
Example of VAT calculation:
– CIF: €2,600
– Customs duty: € 260
– VAT: (CIF + Customs) x 20%.
– (2.600 € + 260 €) x %20 = 572 €
Total import cost
The total import cost is the sum of the CIF value, duty and VAT. Calculation for the example above:
– CIF: €2,600
– Customs duty: €260
– VAT: €572
– Total cost: €2,600 + €260 + €572 = €3,432
This calculation will help you determine the final cost of importing your product.
Things to consider when importing construction materials
1. Determining the correct GTIP code
When importing building materials, it is very important to classify the product with the correct GTIP code. An incorrect code may result in the application of incorrect tax rates and delays. For example
– 2523: Cement (low rate)
– 7308: Metal building materials (higher rate)
2. Document preparation
Complete document preparation is essential in the customs clearance process:
– Commercial invoice
– Packing list
– Certificate of Origin
– Insurance policy
– Transport document (CMR, Bill of Lading, etc.)
Shortcomings or errors in these documents may result in longer processing times and additional costs.
3. The right logistics planning
The choice of logistics method for transporting building materials to France affects your costs:
– Road transport: Door-to-door delivery is convenient and fast.
– Sea transport: Suitable for larger volumes, but delivery times are longer.
TARIC system for checking tax rates
You can use the European Commission’s TARIC system to find out the tax rates applicable to imports into France and other EU countries. This system allows you to find out all the tax rates and necessary documents related to your product by entering your GTIP code.
– Click here to access the TARIC system:
Sample calculation: Ceramic imports from Turkey
Product: Ceramic tiles (GTIP: 6802)
– FOB price: €3,000
– Transport cost: 600
– Insurance cost: 100
– CIF value 3.700 €
Customs duty (10%)
– 3.700 € x %10 = 370 €
VAT (20%):
– (3.700 € + 370 €) x %20 = 814 €
Total cost:
– 3.700 € + 370 € + 814 € = 4.884 €
This calculation allows you to see the total cost of importing ceramic products.
Ways to reduce costs
1. Consolidated transport:
You can reduce transport costs by combining products from different importers in the same vehicle.
2. Choose the right method of transport:
Determine the most appropriate method of transport based on product volume and delivery time.
3. Research tax exemptions:
In some specific cases, you may be able to take advantage of tax exemptions.
4. Professional Support in Logistics and Customs Clearance Process:
You can ensure that the processes proceed smoothly and optimize your costs by working with an expert logistics company.
In importing construction materials from Turkey to France, making accurate cost calculations and managing the processes effectively is one of the most important ways to make your trade profitable. You can plan your import budget correctly by taking into account the CIF price, customs duty and VAT rates. However, before starting the import process, you need to do comprehensive research and consider all the details.
Vermilion Foreign Trade manages the logistics and customs clearance processes in construction materials imports for you professionally. We make your job easier by offering expert solutions on issues such as door-to-door delivery, document preparation and cost optimization.
For more information, you can check the customs duty rates of your products from the TARIC system and contact us.
Access to the TARIC System:
