Import Taxes & Duties for International Shipping

If you ship internationally, you need to know the applicable tax and duties that might be payable when your items arrive in the destination country. Depending on the retail category and total monetary value, most packages that contain new items that travel across borders will incur tax and duties. The exact amount of tax and duties payable is determined by the local customs in the country the package is shipped to.

Most eCommerce parcels shipped internationally will go through a strict import procedure determined by the local customs office. The shipment will be considered cleared once it has been assessed based on the origin country, total value and overall quantity. Usually, the calculation of applicable customs duties and import taxes is based on the goods classified Harmonized System code (or HS/HST for short).

For example, if we were to ship a standard piece of clothing valued at $100 USD from USA to Canada, there would be 13% tax payable to Canadian customs for this fashion item. This is calculated by inputting the value of  $100 USD with the HS Code "4015.90" which covers "Articles Of Apparel And Clothing Accessories".

Easyship provides two separate prices for complete transparency. First and foremost is the shipping quote, the defined rate for eCommerce package delivery from one of our courier partners. This is known as the "shipping rate" or "shipment cost" and is based on the actual delivery price defined by the courier for the package size, weight and destination (including any Easyship pre-negotiated discounts). In addition to this, Easyship also calculates if there are any applicable tax and duty obligations. This allows you to make a clear and informed decision of the total "fully landed" delivery cost, including the combined shipping cost and any applicable customs charges.

As the sender of the eCommerce parcel, you can choose who pays for any applicable import taxes or customs duties. You can manage this decision within the Easyship platform easily by either selecting "sender" or "receiver". This is known as Delivery Duty Paid (DDP) if the charges are paid by the business sending the goods. Or Delivery Duty Unpaid (DDU) if you would prefer for the charges to be paid by the buyer that is receiving the goods. Please note that DDU may result in delivery delays, as usually the package or parcel will not be delivered until the customs duties or import taxes are paid to the local customs office or appointed agency.