Getting Started with International Shipping

Moving into international markets is a big step for a growing business. It can seem intimidating, confusing and perhaps too expensive to start. This guide will go through what you need to know about shipping beyond the borders in simple terms, the forms and taxes expected, and how to utilize ShipWorks for your international shipments.

Let’s start by going over the major difference between domestic and international shipping.

A comparison of domestic and international shipping flows. Domestic starts at warehouse then goes to the destination. International starts at warehouse, then customs, before the destination.

Customs

The very basic purpose of customs is screening incoming products to ensure they comply with the laws of the land and can be taxed appropriately. How do they do this without opening your packages? Customs forms! (Also known as Commercial Invoices, Declarations, etc.) These forms declare what the package contains, how much it costs, where it came from and where it should go.

Before You Ship

These are a series of considerations to take before picking a carrier or filling out forms.

1. Learn the Harmonization Code for your products

New Harmonized Code Requirement for the EU

As of March 1, 2023, all shipments to and passing through most countries in the EU will require HS (Harmonized System) codes included on customs forms along with a more detailed description of the package contents.

This means that descriptions such as "Clothes" will not be accepted. Instead, a more detailed description such as "Men's Cotton Shirt" or "Women's Leather Shoes" will be required.

Learn more about the new HS code requirements from the following resources:

Look up HS codes for your products using the following resources:

Harmonized Tariff Schedule page
GlobalPost HS Classification Tool (may limit the number of codes you can look up in a 24-hour period)

Harmonization codes (also known as Tariff Codes) are internationally recognized codes to classify the product for tax purposes. You will need to look up your products’ codes through the official government website.

Within ShipWorks, you can input the Harmonization Code on your product records. This helps automate the process of creating customs forms within ShipWorks.

Learn more about shipping to the EU.

Harmonization Code FAQ

Q: Do I need the HS code or will the product description suffice?

A: Most destination countries use the Harmonization Code system so it’s recommended to include at least the code. A few countries require the description instead. It is best practice to include both the HS code and a description.

Q: Which HS code do I pick?

A: The codes range from general to specific when classifying goods. Ideally, you want to be as specific as possible to avoid delays or potential seizure of your goods.

You can look up your product codes on the Harmonized Tariff Schedule page. If you need further assistance classifying your product, contact the US International Trade Commission.

2. Pick Countries to Ship to

Shipping internationally does not mean you need to ship everywhere in the world right away. Sometimes, it makes more sense to limit shipping to countries where you know there is a demand for your product.

It’s critical to know the following details:

Does the country allow imports from your home country?
Is your product legal to import to that country?
Does the country require a tax or duty on the product?
If so, what is the tax rate?

Pick a Country FAQ

Q: Where can I learn about import limitations by country?

There are a few official resources to check with:

The International Trade Administration
The US Embassy within the destination country
The US Post Office
Shipping to the EU
Shipping to Mexico

Q: What taxes are levied upon my goods?

The two main taxes you might have to pay: Duties and Value Added Tax (VAT).

However, it will depend on the destination country whether or not these taxes apply to your shipment. Some countries only have duty taxes or VAT. In some cases, you may not have to pay either!

Q: What are duties?

Tariffs are a tax retailers must pay when selling products internationally. Like VAT, each country uses a unique percentage to calculate duties. However, instead of using a single, set percentage, duties are calculated based on the value and quantity of the items being imported plus the cost of shipping and any insurance.

Q: Who pays these fees?

Well, duties can be paid by the merchant (you) or your customer. The two types of duties are: delivery duty paid (DDP) and delivery duty unpaid (DDU). With DDP, the merchant (you) is responsible for all applicable duties and fees. The total is paid upfront by the carrier, and the merchant receives a bill.

If your customer pays it’s called Duties unpaid. With DDU, the recipient (your customer) must pay the duty. If you go with DDU, make sure it’s extremely, exceptionally, extraordinarily clear on your checkout page!

3. Picking a Carrier

Arguably, one of the more challenging things to decide is which carrier you want to use for international shipments. Each carrier has their own advantages for international shipments.

The major things to consider beyond price are:

Availability in the destination country
Ability to export your particular product
Time it takes to deliver
Features for International shipments such as insurance or express delivery
Whether the whole process is handled by the carrier or if it changes hands after customs

To help with this research, here is a list of the carriers within ShipWorks that offer International services:

Mini-FAQ

Q: What is a consolidator service?

A: Consolidation will put multiple shipments into one large cargo shipment and ship everything in a larger container. This is a good solution if you have a high volume of international orders.

Creating an International Label

ShipWorks' goal is to make the process for international shipping as seamless as it is for domestic shipping.

An international order will have custom declarations in the order details. It will be filled in with all your items’ harmonization codes, weights, and dimensions (adding international shipping details to your product records will ensure these details are filled in automatically).

Carriers have two primary methods of handling customs: Electronic Submission or Printed Hard Copy.

Carriers that support electronic customs will send all custom information to the customs office for you. The label will have an icon on it to denote that customs information was sent. There is generally no further action necessary on your part.

Carriers that do not have electronic customs require you to print out custom forms and include them with the shipment. You can print your customs forms and/or Commercial Invoice from ShipWorks when creating the label.

Note

Some carriers like USPS print customs directly onto the label so there is no need to print an additional form.

Q: Where can I find a blank customs form to fill out myself?

A: You can usually find the appropriate forms on the carrier website.

FedEx Customs Forms

UPS Customs Forms

Q: What is a commercial invoice? Is that the same as a customs form?

A: A commercial invoice includes all the information necessary to get through customs. It is considered a customs document.

Q: Do I need to include other forms?

A: This will depend on the content and destination of your shipment. Dangerous goods, perishable goods and high value goods can require additional forms.

Additional Reading

Check out theses articles to learn even more about shipping internationally in ShipWorks.

Still Need Help?

Please feel free to reach out to one of our awesome Technical Support Representatives in St. Louis. We are happy to help.

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