In cross-border international logistics, international express delivery has two common international logistics service models: tax-covered and tax-free. There are different differences between the two models in terms of tax burden, customs clearance procedures and prices. So, what is the difference between international express delivery that is tax-covered and tax-free?
International express delivery with tax included means that the freight includes export declaration fees, tariffs, and customs clearance fees of the importing country. The logistics company is responsible for declaring customs duties on the goods and calculating these fees into the price of the goods. This means that sellers do not need to provide a VAT tax number to make customs declarations themselves. This model of door-to-door delivery by merchants is convenient for both merchants and consumers. After placing the order, consumers only need to wait for the goods to be delivered.

If you choose an international logistics company, many logistics companies have the option of providing tax-included routes. Although the tax package amount of different logistics companies will be different, there is no need to pay the tax out of pocket.

What is the difference between international express delivery with tax included and non-tax included?

  1. Different taxes and fees: International express delivery tax-package service has included taxes and fees in the express delivery fee, and cross-border e-commerce sellers do not need to bear additional taxes and fees. For services that do not include taxes, cross-border e-commerce sellers must bear the taxes themselves. This can result in additional fees and cumbersome tax calculations.
  2. Differences in handling customs clearance: In the international express tax-packaged service, all customs clearance processes, including customs review, tax calculation and declaration, etc., are fully handled by the express company. For services that do not include tax, cross-border e-commerce sellers need to handle customs clearance procedures and tax calculations themselves, which may take more time and energy.
  3. Differences in shipping costs: The cost of international express tax-included service is usually more expensive because it already includes all taxes and customs clearance fees. In services that do not include tax, cross-border e-commerce sellers must bear the taxes themselves, so the shipping price of goods may be cheaper.
    Cross-border e-commerce sellers need to consider their own needs and budget when choosing international express delivery services and make reasonable choices. If the purchased goods are expensive or need to be received within a short period of time, choosing a tax-included service is a more appropriate choice. However, if the value of the goods is low or a slight delay in receiving the goods is acceptable, it may be more cost-effective to clear customs and pay taxes yourself.
    In addition to choosing between tax-covered and tax-free international express delivery services, cross-border e-commerce sellers also have other express delivery service models to choose from, such as international dedicated lines and overseas warehouses.
    The international dedicated line logistics service model is suitable for goods with heavy weight, large volume or bulk commodities. Compared with international express delivery, the price of international dedicated line is more favorable, but the transportation time will be slightly longer.
    The overseas warehouse service model refers to storing goods in warehouses in the destination country, and then sorting and delivering them. Using overseas warehouses can shorten customs inspection and clearance time, reduce related costs, and also improve logistics speed and efficiency.

If you have any questions about cross-border transportation of goods, please feel free to contact us at any time:
Company Name: Shenzhen J sun Logistics Co., Ltd
Contacts: Grace