Cross-Border Shipping Rules and Regulations
Stay up-to-date on the latest regulations or tax updates for your international shipments. Get country-specific compliance details here.
New tariff impacts
An Executive Order was issued on 1 February 2025 which took effect starting 4 February 2025 imposing an additional 10% tariff on goods exported to the U.S. with a country of origin in China and Hong Kong SAR. This Executive Order also stated that U.S. de minimis treatment will no longer be available to impacted goods.
An amendment to the Executive Order issued on 1 February has taken effect that delays the suspension of de minimis treatment of goods originating in China, including Hong Kong SAR until notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue. Additional details will be provided as they are made available.
Please be informed that non-de minimis shipments will be subjected to formal entry or informal entry depending on various circumstances.
- For formal entry, Merchandise Processing Fee (MPF) and duties and taxes as imposed by the customs, as well as UPS customs brokerage fees will be billed to shipper or consignee depending on the shipment’s bill term.
- For informal entry, UPS customs brokerage fees and applicable duties and taxes will be billed to shipper or consignee depending on the shipment’s bill term.
- You may also visit here to identify the harmonized tariff code for your goods.
The Latest on Reforms
Effective January 1st 2025
- For parcels weighing between 10 and 20 kilograms and those over 20 kilograms, delivered in Germany
- A small ‘package’ icon noting the weight class (10+ or 20+) needs to be added to the package
- Labels generated from UPS systems, such as UPS.com, CampusShip, and the Ship API will automatically display this new requirement as of 26 December 2024, adding the icon to the middle upper area of the label
- Correct indication of the weight class is essential for compliant labelling. Customers must provide precise weight information when transmitting shipment details to UPS.
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Important
As of January 1st, UPS Worldship users are requested to apply weight class stickers to parcels weighing between 10 and 20 kilograms and those over 20 kilograms, that will be delivered in Germany until they upgrade to Worldship version 28.0.3 (available in the course of January).
The same applies to Host to Host customers experiencing difficulties programming their own labels. If you need these labels, please contact Customer support.
Stickers will later be available for order in the customer material order system on UPS.com.
Changes for parcels sent from Great Britain to Northern Ireland
From 31 March 2025, the current HM Revenue and Customs (HMRC) waiver scheme for parcels moving from Great Britain to Northern Ireland will be replaced with new arrangements under the new Windsor Framework.
Rules will vary based on the type of business model adopted.
- For Great Britain to Northern Ireland shipments, customs clearance on arrival in Northern Ireland will be required.
- B2B shipments will require individual customs declarations and UPS requires extra data and commercial invoices mirroring those required for international destinations.
- B2C, C2C and C2B shipments will not require individual customs declarations and are classed as NOT AT RISK, but GB shippers will still need to provide UPS with extra data and commercial invoices mirroring sending to international destinations.
- Northern Ireland Importers, and some Great Britain shippers can apply and be authorised by HMRC for the new UK Internal Market Scheme (UKIMS) to avoid paying customs duties.
- B2B goods considered ‘not at risk’ can benefit from the green lane process if the customer (shipper or NI Importer) is authorised under the new UK Internal Market Scheme (UKIMS). B2B goods considered ‘at risk’ must have Duty/VAT paid, which can be reclaimed from HMRC if customer can prove the goods remained and were consumed in Northern Ireland. Postponed VAT Accounting (PVA) may apply.
For additional and specific guidance:
Background information
The New Computerised Transit System (NCTS) is a system used to submit Common Transit declarations for Ground/Road movements. The NCTS ensures that ‘goods in bond’ (goods contained in all shipments transiting Europe with the status NOT CLEARED) can move more easily between the countries of the European Union (*) and the countries of Norway, Liechtenstein, Andorra, Iceland, San Marino, Switzerland, Republic of North Macedonia, Montenegro, Serbia, Turkey, United Kingdom and Ukraine (hereafter ‘NCTS countries’).
NCTS - Phase 5 - will be implemented in stages and will come with new data requirements which include 6-digit Harmonised System (HS) codes on commodity line level.
NCTS 5 will be implemented in two phases: (1) TRANSITION phase and (2) POST TRANSITION phase.
- Transition phase:
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Transitional rules are being applied to allow seamless implementation during the period in which phases 4 phase 5 of the NCTS will coexist. Therefore, there are country variations regarding the mandatory 6-digit HS code for NCTS at commodity level.
- As transitional rules apply, some of the countries have indicated that the inclusion of a 6-digit HS code is optional until the end of 2024, for both import and export movements.
- When the transition phase ends and, therefore, the countries have implemented NCTS Phase 5, each shipment transported by road using this customs procedure must include a 6-digit HS code.
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Start dates of the customs procedure vary depending on the country.
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- Post Transition phase:
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- A 6-digit HS code for NCTS at commodity level will be mandated for all NCTS countries as defined above.
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Some countries are reporting delays in the implementation of the HS code, therefore, the target date may vary by country.
Shipments impacted:
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Type: Ground/Non-Document. COO Status: different from ‘C’ (not cleared)
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Movement Origin: Any of the NCTS countries listed above.
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Movement Destination:
- Either any of the NCTS countries listed above (can be within the same country as origin)
- Any non-EU country
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References:
To find out how to easily identify the appropriate tariff code for your product watch this video and then visit the government website.
If you want more guidance on how to fill your Commercial Invoice correctly, watch this video.
* Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
CBAM is a price adjustment tool introduced to equalize the price of carbon emission between EU domestic products and imports. This applies to imports into the EU for designated goods based on their CO2 emissions in the production process outside the EU. The aim is to prevent carbon leakages.
As of 1 October 2023, we have entered the transitional period, during which importers of CBAM goods are required to submit quarterly reports containing various information such as, among others, quantities, origin countries, greenhouse gas emissions and (If applicable) carbon price due in the country of origin.
If you wish to know more about CBAM you can download a factsheet with more information about CBAM here and visit the official CBAM European Commission dedicated page.
Disclaimer:
Following the adoption of the EU Regulations (EU) 2023/956 (10/5/23) and (EU) 2023/1773 (17/8/23) the Carbon Border Adjustment Mechanism (CBAM) has started to apply with a transitional period until 31 December 2025.
Pursuant to these Regulations, UPS has a possibility to opt out of the CBAM reporting obligations for importers established in a Member State.
Hereby, UPS notifies its decision not to carry out the CBAM reporting obligations provided in Articles 33 and 35 of the CBAM Regulation, on behalf of those importers established in a Member State for which UPS is acting as an indirect customs representative.
Therefore, it will be a legal obligation of such importers, to submit a report (“CBAM report”) containing information on the goods that they import into the EU during a given quarter of a calendar year, no later than one month after the end of that quarter. This report must be submitted to the CBAM Transitional Registry.
We invite you to contact the National Competent Authority for CBAM purposes (NCA) of the Member State where you are established for further information on CBAM-related reporting obligations.
You may also find relevant information on CBAM on the European Commission’s dedicated webpage.
If you are shipping into or via the European Union (EU) countries, Norway, or Switzerland, please be aware that from 1st March 2023 (subject to a deployment window), the EU has implemented a new release of the customs pre-arrival security and safety programme, Import Control System 2 (ICS2). You can read more about ICS2 here.
To ensure compliance and a fast and efficient clearance process, please provide:
- 6-digit HS code for every item - To learn how to identify the right tariff code easily for your product, you can visit the government website.
- Your EU receiver’s EORI number - To know more about the EORI number, watch this video.
- An accurate goods description – This should answer what is the item you are shipping, what is made of and what is intended for.
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If you want more guidance on how to fill your Commercial Invoice correctly, watch this video.
Find out what changed on 1 July 2021 and how it may impact your business when exporting to customers in the EU. We do not control or oversee governmental regulations, including the EU VAT reform rules and regulations. We are providing information that may assist you with your shipments into the EU, and should not be relied on as legal or tax advice.
If you have registered for an EU Import One Stop Shop (IOSS) number, we can store it in our UPS shipping systems, eliminating the need for you to provide this number each time you make a shipment.To do so, please complete and provide the below Power of Attorney (POA) document to your account executive.
Download the POA Form To Submit Your IOSS Number to UPS for Storage
If you do not provide UPS with the Power of Attorney document, please ensure that your IOSS number is entered in your UPS shipping system for each shipment that meets the criteria.
In order to register for the Import One Stop Shop (IOSS) you must have an EU-based establishment. If you do not, you will need to appoint an intermediary to register and settle VAT for applicable EU imports via the IOSS platform on your behalf.
UPS has selected the tax consultant PwC* to offer IOSS intermediary and compliance services for our customers who do not have an EU-based establishment.
If the UPS customer chooses to work with PwC, the IOSS intermediary and compliance services on offer include:
Managing the application for an IOSS number
- Preparing and submitting IOSS VAT returns based on sales data provided by the UPS customer
- Managing communications with the VAT authorities
- Providing monthly information regarding VAT payments
- Relevant updates that might affect UPS customer’s business by means of periodic newsletters.
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You can find further information about the IOSS intermediary and compliance services on the PwC website.**
*PwC refers to PwC Business Advisory Services bv. The performance of the services by PwC will be subject to a client acceptance procedure and necessary independence approvals and clearance. The word “client” throughout this text refers to UPS customers which choose to work with PwC and which pass PwC’s client acceptance procedure.
**UPS cannot take responsibility for pages maintained by external providers and takes no responsibility for information contained on external links from this website. UPS referrals are made for convenience only and UPS makes no representations or warranties related to any services provided by PwC or for the fitness or ability of PwC to provide such services. UPS does not assume responsibility and shall have no liability for the content or accuracy of any advice offered by PwC.
