1. Tariff Threshold Reference & VAT Reform

a. General Rule on Taxation

As a general rule, if the declared value of your parcel is below the tariff threshold set by the destination country, it is typically not subject to taxation. Cases of fraudulent declaration are exceptions. If your parcel is subject to taxes, you are responsible for paying the applicable duties and ensuring timely customs clearance.

b. Specific Country Notes

i. Switzerland: The customs tax threshold is 100 Swiss francs, while the VAT threshold is 65 Swiss francs.

ii. Canada and Europe: Canadian and European customs are known for strict parcel inspections. Commercial express services like DHL, UPS, FedEx, etc., are more likely to incur tariffs.

c. UK and EU VAT Reform

i. UK VAT Reform (Effective 1 January 2021): The UK abolished the VAT exemption for imports with a value of up to 15. All goods with a declared value above 0 are subject to VAT.

ii. EU VAT Reform (Effective 1 July 2021): The EU removed the VAT exemption for imports with a value up to 22. All goods with a declared value over 0 are now subject to VAT. The EU introduced the Import One-Stop Shop (IOSS) for goods valued under 150.

d. States tariff threshold reference table:

Country	Amount
The United States	800 USD
Canada	20 CAD
The United Kingdom	0 GBP
Australia	1000 AUD
EU	0 EURO
Russia	10000 RUB
Japan	130 USD
Singapore	300 USD
New Zealand	300 USD
Swiss	100 CHF

2. Tax Payment Options at Parcel Submission

The tax payment method is determined by the selected logistics product. You will see one of the following four scenarios:

a. Tax-Inclusive

The shipping cost already includes taxes. After selecting a corresponding tax-inclusive channel, the "Tax Option" will display as "Tax-Free". The platform will automatically synchronize declaration information to the logistics provider, who will complete the declaration process. Users only need to pay the shipping cost and are not responsible for any tax-related matters.

b. Non-Tax-Inclusive - User Self-Declaration - VAT Number Required

The shipping cost does not include taxes. After selecting such a channel, the "Tax Option" will display as "VAT", and the user must fill in their VAT number (the platform does not verify the authenticity of the VAT number). The platform will synchronize the VAT number and declaration information to the logistics provider. The user currently only pays the shipping cost. Please note that the parcel may still be inspected at customs in the destination country, potentially resulting in tax liability. If a tax notice is received, please cooperate actively with customs clearance to avoid potential high costs from return shipments. Users bear the tax risk under this method.

c. Non-Tax-Inclusive - User Self-Declaration - VAT Number Optional

The shipping cost does not include taxes. After selecting such a channel, the "Tax Option" will display as "Recipient Payment". Users can optionally fill in a VAT number based on their situation and only need to pay the shipping cost. All subsequent declaration matters will be handled by the logistics provider, with the platform providing necessary declaration data. Please note that if the parcel is inspected at customs in the destination country, corresponding taxes may be incurred. If a tax notice is received, please cooperate actively with customs clearance to avoid potential high costs from return shipments.

d. Non-Tax-Inclusive - User Prepayment

The shipping cost does not include taxes. After selecting a corresponding prepaid channel, the "Tax Option" will display as "Tax Prepaid", showing the applicable tax rate set based on the destination country's tariff/VAT policy. The tax amount is automatically calculated based on the declared value and the tax rate. When submitting the parcel, the cost details will include the shipping cost, and other relevant fees. The platform automatically synchronizes the tax and declaration information to the logistics provider, who completes the declaration, requiring no further action from the user.

3. IOSS Service Guide

a. Service Availability: For EU countries, some Mulebuy shipping routes offer IOSS services. You may opt to use the platform's IOSS agent to prepay taxes.

b. Modification of Declared Value: For parcels using IOSS services, you cannot modify the total declared value after submission. If a change is necessary, cancel the existing parcel and submit a new one.

c. Declared Value Limitations: For parcels using IOSS services, the declared value cannot be less than 30% of the goods' value, and the maximum declared value may vary by shipping route.

d. IOSS and Customs Clearance: While IOSS simplifies tax collection, it does not guarantee faster customs clearance. Clearance time depends on local customs procedures.

e. Double Taxation: If your parcel uses IOSS services, Mulebuy pays the VAT on your behalf. However, this does not guarantee avoidance of additional customs charges. Should this occur, cooperate actively with local customs. After receiving the parcel, you can contact Mulebuy to request a refund for the additional tax payment by submitting the tax receipt and payment certificate.

f. IOSS Number Privacy: To protect user and platform interests, Mulebuy cannot provide the IOSS number used for your parcel.

4. Parcel Submission & Declaration Guide

a. Parcel Submission Tips

i. Parcel Weight: The weight plays a key role in classification as personal or commercial. A 10kg parcel is more likely to be regarded as commercial.

ii. Excessive Quantity of Same Product: Shipping a large quantity of the same product may trigger classification as a commercial parcel. Avoid sending excessive identical items in a single shipment.

iii. Sending Medicines: Due to customs regulations, consider carefully before sending medicines.

b. Declaration Methods

i. Personalized Declare: The system auto-generates a declaration based on product attributes, but you can customize the declared type, quantity, unit price, and total price.

ii. System Declare: You fill in the total declared amount, and the system auto-generates the declaration based on this amount and product attributes.

c. Declaration Risks & Advice

i. Unreasonable Declaration Examples: Item doesn't match its price (e.g., 3 pairs of shoes declared at $1); Item doesn't match its weight (e.g., a 10KG product declared as a ring); Declared value much higher than actual value (e.g., ~$200 value declared as $1000).

ii. Declaration Advice: It is recommended to declare according to the actual value of the goods. Some customers choose to declare at $12-15$/KG for reference. Do not make exaggerated declarations. Customs inspection is random, so do not worry excessively.

iii. Risk Warning: Unreasonable declarations may affect customs clearance.

5. Customs Clearance Instructions & Risk Warning

a. Clearance Responsibility

i. For non-tax-exempt routes or those not supporting IOSS proxy services, clearance fees are the recipient's responsibility.

ii. Customs inspection is typically random, but special parcels (e.g., large, heavy, sensitive) may lead to customs contacting the recipient for invoices/clearance documents, with costs borne by the recipient.

iii. If a parcel is returned or destroyed due to failure to cooperate with clearance or contact the recipient, the recipient is responsible for associated costs.

b. Customs Risk Warning

i. When you place an order, the system assesses potential risks. Upon warehouse arrival, a low-risk shipping route is recommended based on product characteristics and experience.

ii. Some products carry inherent customs risks (e.g., returned packages, fines, taxes). You are responsible for such risks.

iii. The possibility of customs duties depends on inspection frequency and may be affected by policies.

iv. Heavy or high-value goods may increase inspection likelihood. Avoid overly heavy packages or those with many similar goods.

c. Other Services: If you require a customs clearance invoice, download it directly from Mulebuy or contact online customer service.

6. General Note

The above information is based on internet-collected data and is for reference only. It should not be considered a standard or definitive guide.