Understanding Customs
We’ve outlined some basic info about customs as well as tips to avoid customs holds or delays.
Customs Basics
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, except for documents that have no commercial value. 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 package.
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.
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 package.
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.
Pro Tip
Be aware of De Minimis. This is the value threshold before duties and taxes are assigned. If the goods you are shipping are valued below the De Minimis, duties and taxes will not apply. De Minimis varies by destination country. As you’re creating a shipment in our system, you can view an estimate of duties and taxes.
Clear Customs Digitally and Avoid Delays
Opening an account automatically enrolls you in UPS Paperless® Invoice. Already have an account? You can sign up in three easy steps.
Your International Shipping Guide
Everything you need to cross borders and reach new customers around the globe.