Cross-border
Customs, duties and taxes, without the surprise bill
On a cross-border parcel, duty and import tax are owed by whoever the incoterm names. Choose DDP and you pay at checkout; choose DDU and your recipient is billed on arrival. We estimate both before you pay, so the decision is made with a number in front of you rather than after the parcel lands.
DDP or DDU: what actually changes
| DDP (Delivered Duty Paid) | DDU / DAP (unpaid) | |
|---|---|---|
| Who pays duty and tax | Sender, at checkout | Recipient, on arrival |
| Cost at checkout | Higher — includes the estimate | Lower — excludes duty and tax |
| Recipient experience | Nothing to pay, no action needed | Carrier contacts them for payment |
| Typical delay risk | Low | Higher — parcel waits for payment |
| Best for | Retail and B2C shipments | B2B where the buyer clears goods |
How the charge is built
1. Customs value
The declared value of the goods, usually plus freight and insurance depending on the destination's valuation basis. Understating it is fraud, and carriers increasingly cross-check against marketplace data.
2. Duty
A percentage set by the HS code and the trade relationship between origin and destination. A preferential trade agreement can reduce it to zero — but only if you supply a valid proof of origin.
3. Import tax
VAT, GST or a sales-tax equivalent, charged on the customs value plus the duty. This is why tax is usually the larger of the two lines, not the duty everyone worries about.
4. Carrier clearance fee
A flat handling charge for presenting the entry. It appears on almost every dutiable parcel and is the line most often mistaken for an error.
FAQ
Customs questions
Who pays customs duties and taxes — the sender or the recipient?
It depends on the incoterm chosen when the label is bought. Under DDP (Delivered Duty Paid) the sender pays duty and import tax up front. Under DDU or DAP (Delivered Duty Unpaid) the carrier bills the recipient before releasing the parcel. DDP costs more at checkout but is the only option that avoids a surprise for the recipient.
What is an HS code and do I need one?
The Harmonised System code is a six- to ten-digit number that classifies what you are shipping. Customs uses it to set the duty rate. It is mandatory on the commercial invoice for almost every commercial cross-border shipment; a wrong or missing code is one of the most common causes of a hold.
What is de minimis?
A value threshold below which a country waives duty, and sometimes tax, on an imported parcel. The threshold differs per destination and changes with policy, so we surface the current figure for the specific lane on the quote screen rather than publishing a static table that would go stale.
Which documents does an international parcel need?
At minimum a commercial invoice with an accurate description, quantity, unit value, HS code, country of origin and reason for export. Restricted goods, food, cosmetics and electronics may also need a licence, certificate of origin, or a battery declaration. Documentation errors, not tariffs, cause most delays.
Why is my parcel held at customs?
Almost always paperwork rather than policy: a vague description such as 'gift' or 'samples', a value that doesn't match the goods, a missing HS code, or unpaid duty on a DDU shipment awaiting the recipient's payment. Holds for prohibited contents are comparatively rare.