International Customs and Duties: Complete Guide
International shipping involves more than just putting a label on a box. Every package crossing a national border passes through a customs clearance process, and how you fill out the required paperwork directly affects whether your package arrives on time, how much the recipient pays in duties, and whether the shipment is even allowed into the destination country.
Customs rules are set by destination countries, not carriers. A carrier can only do so much — if you provide inaccurate documentation or ship a prohibited item, the package will be held or returned regardless of which service you paid for.
How Customs Clearance Works
When a package enters a foreign country, it passes through that country's customs authority. The authority reviews the customs declaration form to determine what's in the package, its value, and whether it's allowed. Based on that review, customs may: clear the package for immediate delivery, assess duties and taxes that the recipient must pay before delivery, hold the package for inspection, or seize or return prohibited items.
The sender is responsible for accurate documentation. The recipient is typically responsible for paying any assessed duties and taxes. This distinction matters for ecommerce: if your customer expects to pay a certain price and then receives a duty bill, it creates a poor experience. Many sellers handle this with Delivered Duty Paid (DDP) shipping, where duties are estimated upfront and included in the purchase price.
ℹ️ Delivered Duty Paid (DDP) means the seller pays duties upfront. Delivered Duty Unpaid (DDU, also called DAP) means the recipient pays duties upon delivery. Most consumer ecommerce benefits from DDP — buyers dislike surprise charges.
Customs Declaration Forms
Every international shipment requires a customs declaration. USPS uses PS Form 2976 (CN22) for packages under $400 and PS Form 2976-A (CN23) for packages over $400 or any package requiring detailed description. Private carriers like UPS, FedEx, and DHL typically integrate customs declarations into their shipping label generation — you fill out the commercial invoice as part of the label process.
What you must declare: a complete and accurate description of the contents (not just 'clothing' or 'gift' — be specific, e.g., 'men's cotton t-shirt, size L'), the quantity of each item, the value of each item in US dollars, the country of manufacture, and the HS (Harmonized System) tariff code for each item.
- Item description: be specific — 'cotton polo shirt' not 'clothing'
- Quantity: number of each distinct item
- Value: actual transaction value, not discounted 'gift value'
- Country of origin/manufacture
- HS tariff code: 6–10 digit code that classifies the product internationally
- Shipper and recipient contact information
- Purpose: sale, gift, sample, return, personal use
How Duties and Taxes Are Calculated
Import duties are calculated as a percentage of the declared value of the goods, using the HS code to determine the applicable duty rate. Different countries have different duty rates for different product categories. For example, the European Union charges 12% import duty on most clothing from the US, while electronics often face lower rates. Value Added Tax (VAT) or Goods and Services Tax (GST) is applied on top of duties in most countries.
Many countries have a de minimis threshold — a minimum value below which no duties or taxes are collected. The US threshold is $800. The EU threshold dropped to €0 in 2021 for all commercial imports. Canada's threshold is CAD$20 for gifts and CAD$40 for commercial goods. Always research the destination country's de minimis before assuming small packages will pass duty-free.
⚠️ Under-declaring the value of a shipment to avoid duties is customs fraud. Penalties for the recipient can include package seizure, fines, and a flag on their import history. It also voids shipping insurance, since carriers cannot insure an amount higher than the declared value.
Prohibited and Restricted Items
Every country maintains its own list of prohibited and restricted imports. Common prohibited items include certain foods, plant materials, live animals, firearms and ammunition, counterfeit goods, and items made from protected species. Restricted items may be imported but require special permits, licenses, or inspection — pharmaceuticals, certain chemicals, and food products often fall into this category.
Before shipping internationally, always check the destination country's customs authority website and the carrier's international prohibited items list. USPS, UPS, FedEx, and DHL all publish country-specific restricted and prohibited item lists. When in doubt, contact the carrier directly before attempting to ship.
- Check USPS.com for its International Mail Manual (IMM) country-by-country restrictions
- UPS and FedEx publish country-specific prohibited items in their international shipping guides
- The World Customs Organization (WCO) provides HS code lookup at wcoomd.org
- Use a freight forwarder for complex shipments requiring permits or special handling
Tips for Smooth Customs Clearance
The most common cause of customs delays is incomplete or inaccurate documentation. Taking an extra five minutes to fill out declarations thoroughly is nearly always worth it.
- Use the correct HS code — incorrect codes can trigger manual review or incorrect duty assessment
- Include a commercial invoice for all B2B shipments and any package over $500
- Never mark a sale as a 'gift' — this is fraudulent and can result in package seizure
- Include the recipient's phone number on all international packages — customs authorities may call to clear shipments
- For the EU, include an EORI number for commercial shipments
- Ship DDP when possible to provide a better buyer experience and avoid refused deliveries
💡 For recurring international shipments, consider working with a customs broker. They handle documentation, HS code classification, and duty payment on your behalf — the fee is typically $50–$150 per entry and is often worth it for valuable or complex shipments.