Buying products from overseas can give you access to a much wider range of products and potentially better prices. However, international shipping involves more than simply paying for the delivery.
Depending on where you are buying from, where you live and what you are importing, your package may be subject to customs duties, import taxes, GST, VAT and other charges when it enters your country.
These charges are separate from the shipping and package forwarding fees you pay to get your purchase delivered.
Understanding how these costs work can help you avoid unexpected charges and give you a better idea of the true cost of buying internationally.
Customs duties are taxes charged by a country when certain goods are imported. The amount you pay can depend on what you are importing, its value, where it was manufactured and the rules that apply in your destination country.
Different products can have very different duty rates. Clothing, electronics, footwear, food and other products may all be treated differently by customs authorities.
The country where the product was manufactured can also be important. This is known as the country of origin and isn't necessarily the same as the country you bought the product from.
For example, buying a product from a US retailer doesn't necessarily mean the product is considered to be of US origin. It may have been manufactured in China, Vietnam, Mexico or another country.
Import taxes are charges applied when goods enter your country. Depending on where you live, these can include GST, VAT, sales tax or other consumption taxes.
Some countries collect these taxes at the point of purchase, while others collect them when the goods arrive at customs.
The rules can also depend on the value and type of goods being imported. Some countries have thresholds below which certain taxes or duties don't apply.
These thresholds are commonly referred to as de minimisthresholds.
A de minimis threshold is a value below which imported goods may receive simplified customs treatment or be exempt from certain duties and taxes.
The threshold varies considerably between countries. Some countries have relatively high thresholds, while others apply taxes or duties to relatively low-value imports.
It is important to understand that a de minimis threshold does not necessarily mean that every tax or charge disappears below that value. Different countries have different rules covering customs duties, GST, VAT and other import charges.
The rules can also change, so you should check the current requirements in your destination country before placing an international order.
This depends on the shipping service and the terms used for the shipment.
With many international shipments, the recipient is responsible for paying any applicable duties and taxes before or when the package is delivered.
However, some shipping services allow the sender to pay these charges in advance. This can make the delivery process simpler because there should be fewer unexpected charges when the package arrives.
Your package forwarder should tell you whether the shipping service you select includes duties and taxes or whether these will be collected separately.
You may see the terms DDP and DDU when comparing international shipping services.
DDP (Delivered Duty Paid) generally means that the seller or shipping provider is responsible for arranging and paying the applicable import duties and taxes. This can give you a clearer idea of the total delivered cost.
DDU (Delivered Duty Unpaid), or services using similar terms such as DAP, generally mean that import duties and taxes are not included in the shipping price. You, as the recipient, may need to pay them before the package can be delivered.
The exact arrangements can vary, so check the terms of the particular shipping service rather than assuming that every carrier handles duties in the same way.
Customs authorities normally require an accurate declaration of the goods being imported and their value.
The value used for customs purposes can be based on the purchase price of the goods, although the exact rules vary between countries and circumstances.
Your package may also require information about the type of goods, their quantity, country of origin and other details needed by customs.
It is important that your customs declaration is accurate. Deliberately undervaluing a package or describing goods incorrectly can result in delays, additional charges, penalties or the package being seized.
This depends on the customs rules in the destination country.
Some countries calculate duties and taxes using the value of the goods alone, while others may include shipping, insurance or other costs when determining the taxable value.
This means that you shouldn't assume that a package valued at $100 will always be assessed for customs purposes at exactly $100.
Check the customs rules that apply in your destination country if you want to calculate the likely cost before ordering.
Customs duties and taxes aren't necessarily the only additional costs associated with importing a package.
Depending on the shipment, you could also encounter:
Not every shipment will incur these charges. They depend on the carrier, destination, type of goods and the circumstances surrounding the import.
International carriers such as DHL, FedEx and UPS often provide customs clearance services as part of their international shipping operations.
Your package forwarder may also provide information or assistance with customs documentation, but the exact service varies between companies.
Customs authorities ultimately determine whether goods can enter the country and what duties and taxes are payable.
Providing accurate information and the correct documentation can help reduce the risk of delays.
Most international packages pass through customs without significant problems, but delays can occur.
A shipment may be held if customs authorities need additional information, the declared value appears incorrect, duties or taxes have not been paid, the goods require additional documentation or the contents are subject to import restrictions.
Customs processing times can also vary depending on the country, time of year and volume of international shipments being processed.
Using a package forwarder doesn't normally remove your responsibility for complying with the customs rules of your destination country.
The forwarder receives your purchase and arranges international shipping, but the goods are still being imported into your country.
This means that duties, taxes and import restrictions can still apply, even if the retailer originally sold the product for domestic delivery only.
Some forwarders can help with customs documentation or offer shipping services where duties and taxes are collected in advance. However, you should always check what is included before selecting a shipping option.
The rules around low-value international shipments are changing in many countries. Governments are increasingly reviewing or removingde minimis exemptions as cross-border e-commerce grows. These exemptions were originally intended to simplify the treatment of relatively small imports, but the enormous growth in low-value international shipments has put them under increasing scrutiny.
The United States is one of the most significant examples. The US has suspended the duty-free de minimis exemption for qualifying imports valued at $800 or less, meaning that the previous assumption that small international purchases could enter the country without duty is no longer valid. The suspension applies broadly across countries and transport methods, subject to specific rules and exceptions. The US has also introduced new procedures for collecting duties on low-value shipments. © US Customs and Border Protection
This change is happening at the same time as a much broader period of tariffs and trade restrictions. The US is currently using tariffs as a significant part of its trade policy, with duties potentially varying according to the product, country of origin and the particular tariff measures that apply. For anyone using a package forwarder to send goods into the US, this means that the cost of an international purchase can no longer be judged simply by looking at the product price and shipping charge. Duties, tariffs, customs fees and other import costs can make a significant difference to the final price. The US government has also continued the suspension of duty-free de minimis treatment in 2026. © The White House
This is an area that is likely to continue changing. If you are sending goods internationally, particularly into the US, always check the current customs and tariff rules before ordering rather than relying on older information about de minimis thresholds.
There is no way to avoid legitimate duties and taxes, but there are several things you can do to avoid surprises.
The landed cost is essentially the total cost of getting your purchase from the retailer to your door.
This can include the purchase price, domestic delivery to the package forwarder, forwarding fees, international shipping, insurance, customs duties, GST or VAT and any customs or carrier fees.
Looking at the landed cost rather than simply the advertised price of a product can give you a much more accurate picture of whether an international purchase is actually good value.
International shipping doesn't end when your package leaves the retailer or package forwarder's warehouse. Once your shipment crosses an international border, it may be subject to customs duties, taxes and other import charges.
The amount you pay depends on where you are importing the goods, what you are buying, the value of the shipment, its country of origin and the shipping service you choose.
Customs rules and international trade policies can also change, so information that was correct a few years ago may no longer apply.
When comparing package forwarding options, don't just compare the international shipping price. Consider the complete landed cost, including forwarding fees, duties, taxes and any customs or carrier charges.
Understanding the full cost before you buy can help you avoid unexpected charges and make a better decision about whether international shopping is worthwhile.