Customs, Duties, and Taxes Guide for International Shipping

Overview

When you ship internationally, your package may go through customs clearance in the destination country. Customs may assess:

• Duties (import charges based on product type and value)
• Taxes (such as VAT/GST or local consumption tax)
• Customs fees (processing/clearance-related charges, depending on destination)

This guide explains how customs works, what documents you need, and how to avoid delays—so you can ship with fewer surprises.

Quick actions

• Fill your declaration correctly
• Prepare invoices/proof of purchase
• Check destination rules

What Happens During Customs Clearance?

Most international shipments follow the same sequence:

1. Your shipment is reviewed by customsCustoms evaluates what you declared, the shipment value, and whether the items are allowed.




2. Customs may request verificationThey may ask for invoices, proof of purchase, or additional item details.




3. Duties and taxes are assessed (if applicable)Charges depend on destination-country rules, item category, and declared value.




4. Shipment is released for deliveryOnce cleared, your shipment continues to the final-mile carrier.

If there is an issue, customs may place the shipment on hold until documents are provided.

Duties vs. Taxes vs. Fees (Simple Definitions)

Duties

Import charges that may apply based on:

• Item category (e.g., apparel, electronics, cosmetics)
• Declared value
• Trade rules and thresholds

Taxes (VAT/GST or similar)

Consumption taxes applied by many countries on imported goods. Taxes can apply even when duties do not.

Customs/clearance fees

Processing fees sometimes applied by customs authorities or carriers for handling clearance.

Who Pays Duties and Taxes?

In most cases, the receiver/importer is responsible for import charges required by the destination country. Depending on the destination and carrier terms, payment may be requested:

• Before delivery, or
• At delivery, or
• During customs processing

What Documents Do You Need?

The two most important items are:

1) Customs declaration

This lists what is inside the package, quantities, and values. Check step-by-step customs declaration on how to do it properly.

2) Invoice / proof of purchase

Customs uses invoices to verify value and match items to the declaration.

Depending on the destination and item type, customs may also request:

• Product details (brand/model)
• Ingredient lists (for cosmetics/supplements)
• Battery specifications (for electronics)
• Additional paperwork for controlled categories

How Customs Calculates Duties and Taxes (What Impacts Cost)

The final charges depend on several factors:

1. Declared value (and currency)Low or inconsistent values can trigger verification requests.




2. Item category and descriptionCustoms classification depends heavily on your description. Generic descriptions can cause delays.




3. QuantityLarge quantities can be treated differently than personal-use quantities.




4. Destination rules and thresholdsMany countries have de minimis thresholds, category rules, or special restrictions.




5. Shipping method and carrier requirementsSome services have stricter requirements for documentation and screening.

How to Avoid Customs Delays (Best Practices)

1) Use clear, specific item descriptions

Avoid “items” or “clothes.” Use descriptions like:

• “Men’s cotton t-shirts”
• “Running shoes”
• “Face moisturizer (cream)”
• “Mobile phone with battery installed”

2) Make sure values match your invoice

If customs requests proof of purchase and values don’t match, clearance can slow down.

3) Confirm restricted/prohibited items before shipping

Restricted items can delay the entire shipment or cause rejection.

Confirm destination rules before shipping any items.

4) Upload documents early (when available)

Providing invoices and clean declarations upfront reduces back-and-forth requests.

5) Avoid mixing restricted items with normal items

If one restricted item triggers a hold, the whole shipment may be delayed.

Common Reasons Shipments Get Held by Customs

• Missing or unclear item descriptions
• Value appears too low or inconsistent
• No invoice provided when requested
• Restricted items included (batteries, perfume, aerosols, supplements, etc.)
• Destination requires additional documents for certain categories

Country-Specific Guidance

Customs rules are not universal. For destination-specific duties, taxes, restrictions, and documentation expectations, check destination rules.

This is the best place to confirm what applies to your destination.