The Definitive Guide to Bermuda Import Duty, Customs Fees and Landed Costs in 2026

A typical imported purchase may involve:

• the overseas product price
• foreign sales tax, VAT or GST that was not removed or refunded
• international freight
• cargo insurance
• Bermuda customs duty
• wharfage where applicable
• courier, broker or freight-forwarder charges
• local delivery or collection costs

Not every charge applies to every shipment. The key distinction is that total landed cost is not the same thing as customs value.

A practical consumer calculation is: landed cost = product price + unrecovered overseas tax + shipping + insurance + customs duty + wharfage + clearance and handling fees + local delivery.

Customs duty itself is calculated separately: customs duty = customs value x applicable tariff rate.

The customs value must be determined under Bermuda's valuation rules. It should not be assumed to equal the full amount paid to the retailer, courier or freight forwarder.

No. Bermuda does not impose a general VAT or GST on imported consumer goods.

This is one of the most common errors in third-party Bermuda shipping articles. Some websites add a supposed Bermuda VAT after customs duty. That is not part of the ordinary Bermuda import calculation.

A retailer may still charge foreign sales tax, VAT or GST at checkout. That is an overseas tax. Where a foreign tax is included in the price used for Customs purposes, Bermuda Customs' valuation guidance says it may generally be deducted from the transaction value.

The official term is the customs value or value for tax. For many ordinary non-commercial purchases, the starting point is the sales price shown on the invoice or receipt. Depending on the transaction, the value may include:

• the price paid for the goods
• packing or special crating charges
• labour charges for assembling or servicing the goods
• extended warranty charges
• royalties or licence fees
• other sums accruing to the seller

The treatment depends on the charge and transaction. Customs' guidance also identifies overseas sales tax, freight, delivery, insurance and certain handling fees as amounts that may generally be excluded where they are built into the invoice price.

Assume an invoice shows the product and overseas shipping separately.

If the $100 is identifiable overseas freight and no other adjustment applies, the starting customs value may be $900, not $1,000. The $100 shipping cost still belongs in the total landed cost.

Assume a US retailer charges $500 for the product and $30 in US sales tax.

If the foreign sales tax is clearly identified and qualifies for deduction under the valuation guidance, the customs value may start at $500. The buyer still bears the $30 unless it is refunded.

A genuine discount applied at the time of purchase may reduce the transaction value. Customs guidance gives examples such as cash discounts, volume discounts, loyalty discounts and special-offer discounts.

A contingent discount may not be deductible where it depends on future action by the buyer. A down payment is also not a reduction in the value of the goods merely because it is subtracted from the final balance invoice.

Where one shipment contains products with different tariff classifications, declared values and relevant charges may need to be allocated between the different records. Additions and deductions should be prorated rather than placed entirely against one product line.

Every imported product must be assigned a tariff code under the First Schedule to the Customs Tariff Act 1970. The classification can determine:

• the applicable import-duty rate
• the unit on which duty is calculated
• whether wharfage is payable
• whether a permit or licence may be required
• whether any relief or concession might apply

The Government publishes a consolidated Bermuda Customs Tariff for public convenience, but cautions that the Act and current schedules remain the legal sources.

Broad claims such as electronics are one rate, furniture is one rate or appliances are one rate should be treated cautiously.

A broad retail category may contain products classified under several headings and subheadings. An electronic device may be classified according to its principal function, whether it transmits or receives data, whether it records images, whether it is a complete product or part, its power source and its construction.

The importer is legally responsible for tariff classification, even where a courier, customs broker or freight forwarder completes the declaration. Incorrect classification can lead to penalties, duty arrears, delay or seizure.

Bermuda duty rates vary widely. A tariff entry may use a percentage of customs value, a specified amount per litre, kilogram or item, a combination of value-based and specific duty, a zero rate or a reduced rate under an authorised relief.

Many consumer examples use ad valorem duty. If the customs value is $800 and the duty rate is 20%, duty is $160.

Some products, especially alcohol, tobacco and certain other tariff categories, may attract duty based on quantity, strength, weight or another prescribed unit. A simple percentage calculator may be inappropriate for those goods.

Wharfage is separate from customs duty. The Corporation of Hamilton levies wharfage on goods landed or discharged in the Port of Hamilton. The Corporation of St. George's levies it on goods landed or discharged at the Port of St. George's and L.F. Wade International Airport.

Customs assesses and collects the charge. The standard wharfage rate is 1.25% of customs value.

Published exemptions include goods imported by post, accompanied personal goods, specified tariff classifications, listed end-use reliefs, temporary imports under the Sixth Schedule, qualifying complete duty-remission imports and certain Government, diplomatic and international-organisation imports.

This distinction matters when comparing local and imported prices. Government charges can include customs duty, wharfage, postal processing fees where applicable and statutory fees for particular procedures. Private charges may include:

• overseas freight
• consolidation
• dimensional weight
• fuel surcharges
• customs clearance or brokerage
• document preparation
• terminal handling
• storage
• delivery
• oversized or difficult freight

Two importers buying the same product can pay the same customs duty but have very different landed costs.

When goods arrive through a courier service, the courier normally makes the customs declaration for the importer. The importer should provide an accurate invoice, proof of payment if requested, a clear product description, information needed for classification and a CAPS ID where a relief is being claimed.

A freight forwarder may provide an overseas delivery address, consolidation, air or ocean transport, customs declaration services, collection or home delivery. Before buying, check whether the quote includes retailer-to-warehouse shipping, foreign sales tax, international freight, dimensional-weight adjustments, customs duty, wharfage, brokerage, terminal handling, storage and Bermuda delivery.

For postal imports, invoices or receipts must be provided for purchases. Bona fide gifts worth no more than $30 per postal packet may be duty-free. Goods imported by post are exempt from wharfage, and the Post Office charges a $5 processing fee on dutiable postal packets.

The published $30 relief is for bona fide gifts per postal packet or courier package. It does not mean every purchase below $30 is duty-free.

Goods carried in accompanied baggage follow a different process from courier or cargo imports. Bermuda currently provides a BDA $300 allowance for other accompanied personal goods acquired overseas by residents and people otherwise entitled to reside in Bermuda. Visitors have a BDA $50 allowance for other accompanied goods that will remain in Bermuda. Separate allowances apply to tobacco and alcohol.

The Government says personal baggage may be imported up to 90 days before or after the traveller's arrival without payment of customs duty, subject to the relevant baggage-in-advance-or-arrears procedure and Customs Procedure Code. That should not be treated as a general way to ship newly purchased goods duty-free.

Used goods can still attract customs duty. The fact that an item is pre-owned does not remove the need to determine its customs value, tariff classification, applicable rate and relief eligibility.

Keep evidence supporting the declared value, such as an invoice, marketplace listing, proof of payment, photographs, age and condition, comparable resale values and product specifications.

Returning residents and first-time residents may qualify for relief on used personal and household effects in certain circumstances. Government guidance states that qualifying goods generally need to be more than six months old and that shipped goods require a Transfer of Residence Certificate.

The Customs Tariff Act includes end-use reliefs, temporary importation reliefs and miscellaneous reliefs. An end-use relief allows eligible people or organisations to import qualifying goods at a reduced or zero rate where the goods will be used for a prescribed purpose.

Do not assume a product qualifies because it appears environmentally friendly, medical, educational or charitable. The importer, product and use must match the legal relief.

Certain goods brought into Bermuda temporarily may qualify for full or partial relief where they will later be exported. Conditions may include an export deadline, security for the relieved duty, restrictions on sale or disposal and evidence that the goods were re-exported.

The Bermuda Customs Declaration, or BCD, is the principal entry form for imports and exports. The Government states that BCDs must be submitted electronically through the Customs Automated Processing System or the Customs Web Trader Service. Manual BCD submission is not permitted.

Ordinary consumers using a courier or freight forwarder will often have the declaration completed by the provider.

Customs values must be declared in Bermuda dollars. Bermuda Customs publishes official foreign-exchange rates weekly, generally for Thursday through Wednesday. The rate used for the customs declaration may differ from the retailer, card provider, Google or bank rate.

Most ordinary consumer goods can be imported through normal Customs procedures, but some goods are prohibited or require approval. Extra checks may apply to medicines, agricultural goods, weapons, transmitting equipment and controlled materials.

For a normal consumer import, retain the retailer invoice, order confirmation, proof of payment, shipping invoice, insurance invoice where relevant, details of discounts, evidence of foreign tax, product description and specifications and any relief certificate or approval.

A generic description such as electronics, parts or household goods may not provide enough information to support accurate classification.

Importers and travellers should use accurate values and descriptions. The Government's passenger guidance says a false declaration will normally result in a civil penalty equal to three times the duty evaded, in addition to the outstanding duty.

Goods may be held, moved to a Government warehouse, incur additional charges or ultimately be treated as abandoned if amounts remain unpaid. Customs decisions and penalties may be appealable within the stated period, subject to the applicable requirements.

Assume a $750 product, $80 international shipping, a 20% duty rate, wharfage and a $45 courier clearance fee. The $750 is the adjusted customs value.

The shipping is included in the total landed cost but not in this example's customs value.

Assume a retailer invoice of $1,200 product, $72 foreign sales tax and $128 international shipping. The deductible amounts are separately identifiable, duty is 25%, wharfage applies and the broker fee is $65.

The overseas tax remains part of the buyer's cost unless refunded, even though it is excluded from the customs value in this example.

Assume a $100 purchase, $20 overseas postage, a 20% duty rate and postal import.

Goods imported by post are exempt from wharfage.

• adding a fictional Bermuda VAT or GST
• charging duty on international freight automatically
• assuming every product in a retail category has one rate
• ignoring wharfage where it applies
• treating courier brokerage or handling as Government tax
• treating all low-value parcels as duty-free
• using the wrong exchange rate
• assuming used goods are automatically exempt
• claiming relief without the right procedure or evidence

• confirm the retailer's product price
• check whether foreign sales tax will be charged
• get realistic shipping dimensions and weight
• identify the likely tariff classification
• apply the current tariff rate to the estimated customs value
• add wharfage if applicable
• get current provider charges
• add local delivery or collection costs
• compare the landed estimate with the local price
• account for warranty, returns, delay and classification uncertainty

A product that appears cheaper overseas may no longer be cheaper after freight and clearance fees. A compact high-value product with a favourable duty rate may still be worth importing.