Why is there customs duty on my package? (2024)

FAQs

Why is there customs duty on my package? ›

Customs Duty is a tariff or tax imposed on goods when transported across international borders. The purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

If you need to pay import duty on a delivery, US customs will automatically let you or your courier know, and they'll contact you. They'll tell you how much you need to pay, and when it's due, so you won't need to worry about calculating it yourself (unless you think a mistake has been made).

Customs duties and taxes are assessed, generally, if the item sent is dutiable and if the value of the item is above the threshold set by the country's laws. Each country assesses customs, duties, and taxes. Visit the website of that country's customs service for information regarding duties and taxes.

Tell the seller explicitly that the item is for personal use. Import duties typically apply to items imported for commercial use (business or resale)—not personal or retail sales. If you're importing something for your own personal use or as a gift for someone else, you don't have to pay them.

VAT and Customs Duty Tax when shipping from the USA

As the USA is not a member of the EU, a customs duty may apply on top of a 20% VAT payment. VAT and duty amounts are dependant on the mode of transport used to import the goods, the goods themselves as well as the country of origin.

Up to $1,600 in goods will be duty-free under your personal exemption if the merchandise is from an IP. Up to $800 in goods will be duty-free if it is from a CBI or Andean country. Any additional amount, up to $1,000, in goods will be dutiable at a flat rate (3%).

Do I have to pay duty on items shipped to the US? Yes. Any goods valued over $800 USD (de minimis value) are subject to import duty tax. However, items valued below $800 are exempt from duty, unless they fall under the De Minimis exception list.

You are permitted to bring 100 cigars or 200 cigarettes (one carton) into the US duty free, or one roll (“stock”) of snuff into the US duty free. You may import furniture, dishes, linens, libraries, artwork and similar household furnishings for your personal use free of duty.

Remember, just because customs can only “hold” your package for five days doesn't mean you can expect to clear customs within five days. If customs is congested, it may take several days (or even weeks) to clear customs simply because the line for customs is that long.

The easiest way to pay a fee is online. Once we've received your payment we will arrange for your item to be delivered. Alternatively, you can pay the charge and collect your item in person from the address on the front of the 'Fee to pay' card.

Does USPS collect customs fees? ›

Post Office facilities must collect a Postal Service fee from the addressee for each item on which customs duty or Internal Revenue tax is collected.

When the shipper pays duties, fees or taxes, it is called Delivery Duty Paid (DDP). This can improve the customer experience by providing additional clarity and transparency during the buying process. Delivery Duty Unpaid (DDU) means the receiver will need to pay.

The Basics of Duty Deduction

U.S. Customs and Border Protection (USCBP) allows the deduction of certain costs and expenses incurred for the transportation and import of your international shipments when submitting your customs entry, which can reduce your overall duty spend.

The customs fees and duties you may have to pay when buying something online from outside your country depend on various factors, including the value of the item, the country of origin, and the customs regulations of your country.

Delayed delivery: If you refuse to pay the customs fees or taxes, your package may be held by customs and delayed. This can result in your package taking longer to reach you, or in some cases, being returned to the sender.

Remember, just because customs can only “hold” your package for five days doesn't mean you can expect to clear customs within five days. If customs is congested, it may take several days (or even weeks) to clear customs simply because the line for customs is that long.

When a passenger arriving into the United States acquires merchandise abroad (by purchase, gift, otherwise), they must declare it to U.S. Customs upon returning to the United States. If they do not, the merchandise will be subject to forfeiture and the person can receive a penalty.