When shipping internationally, orders may be subject to import duties, taxes, customs fees, or brokerage charges imposed by the destination country. These charges are determined by local customs authorities and vary depending on the shipment value, product type, and destination country.
What are duties and taxes?
Duties
Import duties are taxes charged on goods shipped from one country to another. Duty rates vary based on:
- Product category
- HS (Harmonized System) code
- Country of origin
- Shipment value
- Freight cost
Taxes
Import taxes may include:
- VAT (Value Added Tax)
- GST (Goods and Services Tax)
- Sales tax
- Other regional customs taxes
Some countries also apply customs processing or brokerage fees.
Who Pays Duties and Taxes?
Depending on the shipping method selected, duties and taxes may be:
Prepaid (DDP - Delivered Duty Paid)
The sender pays duties and taxes. No additional payment is typically required upon delivery.
Benefits:
- Faster customs clearance
- Improved delivery experience
- No extra cost for your customer
Unpaid (DAP/DDU — Delivered at Place / Delivered Duty Unpaid)
The customer pays duties and taxes directly to the carrier or customs authority when the shipment arrives.
This may result in:
- Delivery delays
- Additional carrier handling fees
- Unexpected charges at delivery
Note if payment is refused this can end up being charged back to the sender.
How Duties and Taxes Are Calculated
Import charges are generally calculated using:
- Product value
- Shipping cost
- Insurance cost
- Product category / HS code
- Country of origin
- Destination country regulations
Some countries calculate duties using:
- CIF (Cost, Insurance & Freight) valuation
- FOB (Free on Board) valuation
Customs rules differ by country and may change over time.
On GoSweetSpot, we have added a Duties & Taxes Estimation tool: This will automatically calculate both duties and taxes for the total value of all products declared. (Note: this tool is only for estimation. It is not a guarantee of actual charges that get invoiced)
Why Am I Being Charged Duties & Taxes?
Governments apply import charges to:
- Protect local industries
- Regulate imported goods
- Generate tax revenue
International orders may require these charges before customs clearance and final delivery.
Additional Fees
Some shipments may include extra fees such as:
- Customs brokerage fees
- Carrier handling fees
- Storage fees
- Disbursement fees
- Merchandise handling Fees
These fees are determined by the shipping carrier or customs agency and may not always be included in checkout estimates.
Important Notes
- Duties and taxes are estimates and may vary at customs clearance.
- Incorrect or missing HS codes can affect duty calculations.
- Certain products or countries may not support prepaid duties.
- Customs authorities may apply additional inspections or charges.
FAQs
Will I be charged again on delivery?
If your order was shipped using DDP/prepaid duties, additional payment is usually not required unless customs applies unexpected charges.
Are duties and taxes refundable?
Duties and taxes are generally non-refundable once processed by customs authorities.
Why are the charges different from my estimate?
Final customs assessments may vary based on inspection results, product classification, or updated regulations.
How can I reduce customs delays?
Ensure:
- Accurate product descriptions
- Correct HS codes
- Valid invoice information
- Complete shipping details