Shippers in Canada and the USA are seeking parcel delivery solutions to the Caribbean for online orders and distribution. Trinidad and Tobago is the Caribbean's largest economy.
In this blog, we review,
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Canada Post and USPS offer low-cost shipping for small parcels to the Trinidad and Tobago. Jet Worldwide offers shipping solutions for e-commerce online sellers to the Caribbean as the postal services have been disrupted.
FedEx and UPS are the largest carriers in North American and, along with DHL, offer reliable shipping options to Trinidad and Tobago. The "Caribbean pricing" zone of these carriers are typically among their more costly regions.
FedEx and UPS shipping Options to Trinidad and Tobago Include:
Purolator, a division of Canada Post, offers international shipping options to Trinidad and Tobago via partners, including UPS, and as a third party logistics provider. Purolator is a division of Canada Post.
7% levy on goods imported to Trinidad and Tobago:
The Government of Trinidad imposes an additional 7% levy on online purchases of goods and services. Please note when reading the information below that your duty costs may include an additional 7%.
The online tax does not apply if:
Jet Worldwide and our partners work closely with local customs to ensure proper classification and correct assessment of fees. Our industry leading-blog on shipping to Trinidad is designed to further our mission of connecting people, parcels and businesses around the world.
Valuation and "landed cost"
Trinidad and Tobago Customs and Excise calculate the Duty on the "Landed Cost." Most shippers mistakenly assume that duty is calculated on their declared value.
To calculate duty, customs uses the CIF Value (Cost plus Insurance plus Freight). This is also referred to as the “landed cost.”
Calculation of landed cost
Cost of the item
+ transport cost
+ insurance
= Landed Cost
Trinidad Provisional Collection of Taxes Order
The Trinidadian Government imposes an additional 7% on goods purchased online and imported to Trinidad and Tobago.
Criteria for the implementation of the import tax include:
Calculation of duty for parcels to Trinidad and Tobago:
Duty rates average between 20% and 30% and calculated on the landed cost (as explained above).
Although duty rates vary by commodity and subject to change, most consumer commodities (including electronics and clothing) are subject to a 20% duty plus Vat (12.5%).
Note: As mentioned above, many shipments are being subjected to a 7% levy in addition to the published duty rate.
Example of duty assessment
Item: New clothing
Landed Cost: CAD 200
Amount in TTD (using 5.37787): TTD 1,075.57
Duty Calculation with online import tax:
Landed cost + 7%: 1057.57 + $75.29 =$1132.86
Duty rate for new clothing = 20%
Duty cost: $226.58 (1132.86 + 20%)
Duty Calculation (without import tax)
Calculation for duty (landed cost x duty rate)
Duty rate for new clothing = 20%
Duty cost: $215.11 (1075.57 * 20%)
Calculation of VAT for parcels to Trinidad and Tobago:
The Value Added Tax (VAT) in Trinidad and Tobago is 12.5%. The VAT is calculated on the total of the landed cost + duty. Trinidadian businesses can often claim back the VAT they have paid.
So, to continue with the example from above:
Landed rate + duty (1075.57 + 215.57) = TTD 1291.14
Vat rate = 12.5%
Duty cost ($1291.14 * 1.125) = TTD 161.39
Often, our Canadian clients wish to pay customs fees to ensure cost-free delivery to their consignee (who is often a family member or client). Our Delivery Duty Paid (DDP) service to Trinidad provides the option for the shipper to pay the Trinidad and Tobago customs duty and VAT.
Although duty rates vary, the fees generally can be broken down into the following categories:
The list of items that cannot be sent to Trinidad and Tobago are common to other destinations and include:
Jet Worldwide gives access to all companies seeking shipping quotes between Canada, USA and Trinidad and Tobago (and the Caribbean) for parcels pallets, and online orders.