Overview of Puerto Rico Customs Duties and Fees
Summary:This article provides an overview of Puerto Rico's customs duties and fees. Import duties and other taxes are calculated on the FOB price. Tariffs range from 0% - 37.5% with an average of 5.63%, and some goods are exempt. It participates in free trade agreements and has preferential tariffs with origin requirements. The standard sales tax rate is 7.25%, with some goods having a 0% rate. There is a $200 tariff threshold, but VAT is levied regardless. Consumption tax on tobacco and alcohol is mentioned.
[Overview]
Whether individuals or business entities import goods into Puerto Rico, they must pay import duties and other taxes. Import duties and fees are all calculated on the value of the goods, i.e., the free on board (FOB) price. However, there are some imported goods where the taxes and fees are calculated partly on the value of the goods and partly on the quantity. At the same time, imported goods may be subject to sales tax. (Note: Puerto Rico belongs to the customs territory of the United States, so the customs codes and tax rates are based on the applicable standards of the United States, but it has its own fiscal jurisdiction. All goods imported from the United States are exempt from customs duties, but sales tax is still levied.)
[Tariffs]
Puerto Rico's tariffs can be levied either ad valorem (a percentage of the value of the goods) or ad valorem (in US dollars per cent). The general tariff rate ranges from 0% to 37.5%, with an average rate of 5.63%. Certain goods are exempt from tariffs, such as certain electronic products, original paintings over 100 years old, and antiques.
[Preferential Tariffs]
As part of the US customs territory, Puerto Rico participates in free trade agreements between the United States and several countries. To enjoy preferential tariff treatment, the imported goods must comply with the rules of origin in the Rules of Origin Agreement, and the certificate of origin is a necessary condition for enjoying preferential tariff treatment. For relevant examples, please refer to the North American Free Trade Agreement.
[Sales Tax]
Puerto Rico's standard sales tax rate is 7.25% (5.5% federal tax and 1.75% local tax), sales tax = standard sales tax rate 7.25% × (CIF price + certain applicable tariffs). The sales tax rate for certain goods such as food and medicine is 0. (Note: Goods imported from the United States are exempt from tariffs, but sales tax is still levied.)
[Tax threshold]
Imported goods with a value of no more than US$200 are exempt from tariffs. However, regardless of the value of the imported goods, value-added tax is levied.
[Tax threshold]
Consumption tax is a tax levied on tobacco and alcohol products. Puerto Rico's tax overview is not included for the time being, please follow up.