# Customs Duties

When redeeming NFTs and shipping the corresponding physical assets internationally, customs and tax obligations may apply.

### Redeemed Assets Are Treated as Commercial Goods

* When an NFT is Burned and the physical item shipped, it is treated as a commercial good
* Subject to import duties or taxes depending on the destination country's regulations
* Tax thresholds vary by country

### Holos Provides Transparent Documentation

* Invoices include item description and appraised value
* Users are notified in advance of possible customs fees
* Holos provides customs guidance and support through FAQs

This ensures smoother customs clearance.

### Customs and Duties Are the User’s Responsibility

* Holos does not prepay or cover import duties or fees
* Users are billed directly by local customs authorities
* Costs are disclosed before confirming redemption

Users are advised to check with local regulations when redeeming high-value items.

### Restrictions in Certain Countries

* Some countries may restrict the import of trading cards or specific items
* Holos notifies users in advance of ineligible destinations
* In such cases, users are encouraged to retain or sell the NFT instead of redeeming it