e-commerce logistics

MSME Threshold for E-Commerce Shipping

MSME Threshold for E-Commerce Shipping

The good news continues: your soap is sold in bar form. This is important, as liquids are prohibited items. Bar soap is unlikely to be found on lists of goods not allowed to be sent to certain markets (although you should be cautious if sending to Australia, which has a long list of restrictions to maintain agricultural quarantines). But then you face another serious and unexpected problem. There is a declaration form that needs to be filled out for the package. The requested information can include your sender IOSS number (for the EU) or the GST/VAT number of your recipient. The form asks for HS Codes and country of origin. You make soap. You have no idea what these questions even mean to you and you quickly have to find someone who can help. You might get incredibly lucky and find a post office staff person who can unravel these questions. Or not. In some markets, there are either written guides or help sheets built into the websites of the postal service. In some locations, there are government officials or business association staff who can provide some assistance. But in many instances, you are on your own to sort this out. If you get your information wrong, it can be a serious problem. Once the details are filled in, the package is ready for shipment. The costs shown on the invoice reflects the shipping charges and may need immediate payment. Flush with success, you prepare a second package. However, this time you are suddenly presented with a different set of bills. In addition to shipping charges, you are getting charged import duties and taxes. These import duties on soap could be as high as 25-40% and the taxes can easily be another 10%. Plus the customs forms are much more complicated.