Who pays for the duties or taxes that may be applicable at the destination country?
International shipments are subject to customs duties - taxes imposed on goods when transported across international borders. Customs duties protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.
Customs duties are assessed on the declared value of the goods shipped. To avoid excessive taxes, be sure that your customs forms indicate accurate values.
Each carrier provides different options for customs duties payment. We provide details about the following carriers:
When creating an international UPS shipment, you can select which party pays the customs duties/taxes: Recipient, Sender, or Third Party.
This is the default and when chosen as the payor of customs duties/taxes, there are optional fields for a UPS account number and the account number’s postal code. If provided, that account will be billed instead of the recipient paying in cash.
USPS makes the recipient responsible for customs duties and taxes.
According to the USPS website:
"Post Office facilities must collect a Postal Service fee from the addressee for each item on which customs duty or Internal Revenue tax is collected. The Postal Service fee is authorized by international postal agreements to reimburse the Postal Service for costs it incurs clearing items through customs and collecting customs duties at the time of delivery."
When shipping to another country, duties and taxes may apply to your shipment. The recipient of the shipment is generally responsible for paying any duties or taxes. However, there may be instances where you as the merchant will want to cover the cost of duties and taxes. When a merchant pays it is called Delivery Duty Paid or DDP.
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.
Have a comment to share about this article? We'd love to hear from you. You must be logged in to your Support Portal account to leave a comment.
Comments
0 comments