Understanding Customs

Customs is a term commonly used in international shipping pointing to the duties, fees or taxes charged on items being shipped from one country to another. Costs can vary depending on the items and countries being shipping from and into.

Each country has its own customs rules and guidelines, but no matter where you’re shipping, our online tools will accurately let you know what to expect.

Either the shipper or the receiver will be responsible for payment of duties, taxes and fees. In rare instances, these may be charged to a third party.

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.

If you do not have a UPS payment account, and are simply paying with a credit card, it will default to DDU, meaning the receiver will have to pay the duties, taxes and fees in order to receive their shipment. By opening up a UPS payment account, you can choose who will pay when you create the shipping label.

If the recipient will be responsible for these charges, we recommend you inform them of this before the transaction, to avoid any surprises. However, if the receiver does not pay, UPS may recover the outstanding amounts from you.

You will need to fill in a commercial invoice, which is required for all cross-border shipments. Our shipping tool will help you fill out your commercial invoice as you’re creating your shipping label.

Please make sure to provide accurate and specific information--in order to avoid customs delays.

We can transmit your commercial invoice digitally if you have a UPS account. (To enable Paperless^® Invoice, go to your account details screen. If you need an account, you can open one here and will be automatically enrolled.) Otherwise, be sure to print out three copies of the commercial invoice and include it with your parcel.

There may be other forms you need to fill out, based upon the details of what you are shipping. Again, our shipping tool will guide you through and help you fill in the required info, but you can also view a rundown of other customs forms here.

You will need a contract in order to ship special or dangerous goods. Learn more about how to ship special-care or regulated items.

Shipping regulations can vary country-to-country. We’ve outlined some general region-specific regulations, but you can also get country-specific guidelines from our handy import/export tool.

Include a shipment description with relevant details.
Make sure your commercial invoice includes a shipment description (describe the whole shipment and its products) as well as the product value of everything being shipped.

Send customs forms digitally.
We can help your shipment clear customs faster by transmitting your commercial invoice digitally, if you have a UPS account. (To enable Paperless Invoice, go to your account details screen. If you need an account, you can open one here.) Otherwise, be sure to print out three copies of the commercial invoice and include it with your parcel.

Find your Harmonized Tariff (HS) code.
Harmonized System Codes (or tariff codes) are used by customs authorities to identify products being shipped, so they can accurately assess any duties and taxes owed. An incorrect code can lead to customs delays or even fines.

While you don’t need to know your tariff code in order to ship, it is important that you provide an accurate, detailed description of the goods you are shipping (example: ‘men’s knitted jumper’ is better than ‘jumper’, ‘clothing’ or ‘gift’). This will allow us to determine the appropriate code for your goods.

However, to ensure accuracy, you can also look up your code before you create your shipping label.

Complete and accurate information about your shipment is necessary to avoid customs clearance delays. Select Incoterms^® carefully, research required permits and licences, and always provide an accurate commercial invoice with complete product descriptions.

Learn more about efficient customs clearance.

Ensure that you understand customs valuation and its importance in avoiding customs clearance delays. Read our step-by-step guide on how to provide complete documentation in order to determine proper customs valuation.

Download the checklist

Ensure that you understand whether or not you are shipping strategic goods. Due to their sensitive nature, export may be prohibited altogether or subject to specific conditions. Read our guide on how to ship strategic goods reliably.

Guide to Shipping Strategic Goods