Freight Shipping between UK and Hungary | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from UK to Hungary?

Starting to estimate the duties and taxes for your imports from the UK to Hungary doesn't have to be a daunting process. Primarily, you need to familiarise yourself with several key components that determine the cost. These components are the country of origin, the HS Code corresponding to your product, the Customs Value of your goods, the Applicable Tariff Rate, and any additional taxes or fees that may apply.

Get off on the right foot by first identifying the country where your goods were manufactured or produced. This will be your 'country of origin', and it plays a crucial role in shaping your duty and tax liabilities. By knowing this and the other components, you can be better equipped to govern your shipping operations successfully.

Step 1 - Identify the Country of Origin

Determining the country of origin might seem like a no-brainer, but its importance is multifaceted. First, it's a customs requirement. Without it, your shipment won’t budge. Second, it lets you know if any specific trade agreements apply. The UK and Hungary, for example, fall under the EU-UK Trade and Cooperation Agreement, which can affect customs duties.

Third, the right origin documentation helps avoid delays at customs. Fourth, it ensures your understanding of the correct tariffs, taxes, and duties. Lastly, knowing the country of origin clarifies if there are any import restrictions in place.

When it comes to UK to Hungary imports, make sure you're aware of potential restrictions on certain types of goods like animal products and plants. Exploring the details of these restrictions can save you from unexpected headaches down the line. Always remember - forewarned is forearmed. In the often complex world of international logistics, knowledge is not only power; it's efficiency.

Step 2 - Find the HS Code of your product

The HS Code or Harmonized System Code is integral to international trade. It's a standardized numerical method of classifying traded products universally. This system allows countries to exchange goods smoothly and helps in determining customs tariffs, collecting international trade statistics, and creating freight tariffs.

Your product's HS Code is often readily available from your supplier, as they are well-acquainted with the goods they're exporting and the related trade regulations. So, it's always a good first step to ask them.

But if you're unable to obtain the HS Code from your supplier, don't worry. You can easily search for it using an online tool.

The Harmonized Tariff Schedule is a handy lookup tool where you'll find your HS Code. Simply input the name of your product in the search bar provided.

Once the results are populated, you're just a step away from finding your HS Code. Navigate to the 'Heading/Subheading' column and voilà, the number you've been looking for should appear right there.

However, here's a word of caution: Ensure accuracy while choosing the HS Code, as any discrepancy can cause potential setbacks such as delays in shipping and fines. Accurate HS Codes are not only vital for your business operations but also crucial for maintaining institutional compliance.

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

Step 3 - Calculate the Customs Value

You might be wondering, isn't the customs value the same as the product value? Not quite. The customs value, also known as the CIF value, differs slightly. It isn't just the price of your goods alone. Instead, imagine it as a comprehensive sum - it includes the price of your goods, the cost of international shipping, and the insurance cost.

To illustrate, consider you're shipping bottled wine priced at $1000 from UK to Hungary. Your shipping cost is $200 and the insurance cost is $50. The customs value won't be the product price ($1000), but the sum of all three elements, $1250 ($1000 goods + $200 shipping + $50 insurance).

This CIF value is pivotal as it forms the basis for customs duty calculation. Accurate computation ensures smoother clearance at Hungary's customs.

Step 4 - Figure out the applicable Import Tariff

Import tariffs are essentially taxes or duties paid on specific types of goods imported from one country to another - in this case, goods imported into Hungary from the UK. Determining the correct tariff can be crucial, as it forms part of the calculation for import duties payable.

The UK uses its own Trade Tariff Tool to identify applicable import tariffs. Here's a straightforward process with a practical example to guide you:

1. Visit the UK's Trade Tariff Tool, and you should reach a page that looks like this :

2. Here you should enter the Harmonized System (HS) code for your product (let's assume the HS code for a bicycle - 87120000).
3. Review the listed duties and taxes for your product, and here we go!

For instance, if the tariff identified for bicycles from the UK to Hungary is 14%, and the Cost, Insurance, and Freight (CIF) value of the shipment is USD 5000, the import duties can be calculated as follows:

Import Duties = Import Tariff CIF value = 0.14 5000 = $700 USD

This way, you can easily anticipate your expenses and avoid any unwelcome financial surprises. Your shipping journey from the UK to Hungary should now feel a lot less complicated!

Step 5 - Consider other Import Duties and Taxes

Beyond the standard tariff rate, you may encounter other duties depending on the specifics of the product and its origin. For instance, there might be 'excise duties' on specific goods like tobacco or alcohol. 'Anti-dumping taxes' may be levied on goods priced below fair market value to prevent market distortions.

More notably, the VAT rate plays a crucial role. In Hungary, the standard rate is around 27%, which is generally applied to the customs value plus any import duty. To give you a practical illustration, let's say you’re importing a product valued at $1000, with an import duty of 10%. Your calculated VAT will be one like: $1000 + $100 ($1000 x 10%) = $1100 x 27% = $297.

Remember, these examples might not hold true for every situation, as there can be variations depending on country of origin and product type. You must always verify the latest rules and rates from reliable sources. We recommend taking the time to understand these nuances to avoid any unwanted surprises during your shipping process.

Step 6 - Calculate the Customs Duties

As you navigate through customs clearance in Hungary for goods imported from UK, Step 6 is crucial - calculating the Customs Duties. This step involves a few key values: the customs value of your goods, VAT, and potentially anti-dumping taxes, and Excise Duty. Here's a comprehensive formula that might help: Customs Duties = (Customs Value x Duty Rate) + (VAT x (Customs Value + Duty)) + Anti-dumping Taxes and Excise Duty.

Consider this example where you only need to calculate Customs Duties: If your goods' customs value is $10,000 and duty rate is 3.5%, your dues would be $350.

In a case where both customs duties and VAT apply, let's say with a VAT rate of 27%, your dues would be: $350 (duties) + 27% x ($10,000+ $350) = $3,094.50.

If you've got customs duties, VAT, anti-dumping taxes and Excise Duty, like a customs value of $10,000, duty rate of 3.5%, VAT rate of 27%, an anti-dumping tax of 3% and Excise Duty of 2%, this would be your calculation: ($350 (Duties) + $2,794.50 (VAT)) + $300 (Anti-dumping Tax) + $200 (Excise Duty) = 3644.50.

However, with these complexities at hand, seeking professional help can save you both time and money. DocShipper’s customs clearance services seamlessly handle every step of the process, ensuring you don't pay a penny more. Contact us for a free quote within 24 hours. We're here to streamline your global transactions.

Bill of Lading

The Bill of Lading, your product's passport for shipping goods from the UK to Hungary, officially transfers ownership and guarantees the goods arrive intact. Unlike traditional practices, the telex release offers digital confirmation, saving you time and reducing paperwork hustle. Similarly, for air cargo, the Air Waybill (AWB) is your ticket, documenting the contract of carriage. Remember, these documents are non-negotiable, detail your goods precisely! For instance, a Manchester-based furniture manufacturer shipping oak tables to a Budapest retailer can smooth their course with an accurate, complete Bill of Lading. Pair this savvy business move with the speed and convenience of electronic releases to stay ahead in your international logistics game.

Packing List

Delving into the not-so-exciting but fundamental arena of international freight, the Packing List lands a star role. Just imagine - your shipment is a Hollywood movie, the customs officers are the critics. The Packing List? It's the movie synopsis laying out every essential plot point (block or packet!) in your UK-Hungary shipment.

It's your duty as a shipper to produce an accurate, meticulous Packing List, whether your cargo travels by the gentle rhythms of the sea or illuminates the sky. If you're shipping a pallet of books, for example, the Packing List needs to indicate the exact number, their individual weight, and collective weight. Variance in this 'storyline' could mean a hold up at customs, and no one wants a plot twist like that! Realize the narrative power in your hands, and keep control of your shipping blockbuster.

Commercial Invoice

Navigating customs clearance between UK and Hungary? Your Commercial Invoice is critical. It should detail the goods you're shipping - their value, weight, origin and destination, and the HS codes. It's not just a shopping list; customs use this to calculate duties, and any discrepancies can cause delays. So, let's say you're shipping bumper parts for cars from Birmingham to Budapest. The HS code is 870810 - don't get it wrong on your Commercial Invoice. And remember, your invoice, packing list, and Bill of Lading should be consistent. Any mismatch could result in your shipment spending more time at customs. Consider the Commercial Invoice as your passport to successful cargo delivery.

Certificate of Origin

Navigating between UK and Hungary, a Certificate of Origin is your secret weapon for smooth customs clearance. It’s your product's passport, telling customs its home country. Did you know this nifty document can unlock preferential duty rates? Say you're exporting speciality teas from Manchester to Budapest. A correctly completed certificate that affirmatively shouts 'Made in Britain!' could see your shipment enjoying lower, or even zero, tariffs, making your tea more competitively priced in Hungarian markets. So, don't forget to clearly mention the country of manufacture on your Certificate of Origin and turn this often overlooked piece of paper into a serious asset. As ever, authentic and precise documentation is a must. Happy shipping!

Certificate of Conformity (CE standard)

When shipping goods from UK to Hungary, remember: your items must comply with CE standards, a mandatory requirement in the European market. This isn't about quality assurance; rather, it's a declaration that your goods meet EU safety, health, and environmental protections standards. Think of it like a passport enabling your goods to travel smoothly across European borders.

Now, it's essential to note: the CE marking isn't identical to US standards or the UK's new UKCA marking. However, familiarity with these requirements facilitates better international business transactions. Stay ahead by verifying whether your product needs a CE or UKCA marking before shipping. Check the link above for a deeper understanding of UKCA mark. Remember, later headaches are prevented by proactivity now!