For US-based account holders, certain ShipStation Carriers will offer Pre-Paid Duties and Taxes Guaranteed on supported services when shipping packages from the US. With this guarantee you and your customer will not be hit with hidden fees at delivery, your customs fees will be paid at the same time you create the label. Pre-Paid Duties and Taxes Guaranteed is currently available with qualifying UPS from ShipStation, FedEx from ShipStation, and DHL Express from ShipStation shipments.
When the guaranteed option is selected, Shipstation, together with our logistics network, handles payments of applicable duties & taxes to the relevant customs and tax authorities, to help ensure that your shipments pass as efficiently as possible through customs and to their intended destination, without extra charges or delays.
To use Pre-Paid Duties and Taxes Guaranteed you will need to accept the Pre-Paid Duties and Taxes Guaranteed Terms and Conditions pop-up and ensure you include Harmonization codes (HS Code or commodities code) in your shipments. You can add the Harmonization Code to the Customs description of your Product Details so it automatically populates for an order. You can also add it manually to the customs declaration section of the Shipment Details before creating your label.
Once you have enabled Pre-Paid Duties and Taxes Guaranteed you will see Duties and Taxes (Guaranteed) as an additional line item in the Cost Review pop-up. This cost will be deducted from your balance, and it will be the final cost that is paid for the duties and taxes.
For US-based accounts the default DDP setting Set Guaranteed Prepaid Duties and Taxes as default for all International orders is enabled. You can adjust this setting by going into your International settings.
This section provides answers to frequently asked questions (FAQs) about the calculation, payment, and benefits of using Guaranteed Prepaid Duties and Taxes in Shipstation.
Pre-Paid Duties and Taxes Guaranteed gives you transparency and security at order creation. With this guarantee you and your customer will not be hit with hidden fees at delivery, your customs fees will be paid at the same time you create the label. ShipStation's Guarantee will help ensure that your shipments pass as efficiently as possible through customs and to their intended destination, without extra charges or delays.
There are no specific restrictions on duty- and tax-inclusive shipments, however, goods that are restricted from import in the country of destination are not supported for non-duty and tax inclusive or inclusive shipping.
We encourage these shipments to be sent promptly, as country-specific duties and taxes may change over time. Shipments sent significantly later than the original label purchase and duty/tax calculation may be subject to additional charges if the applicable duties and taxes differ at the time of shipment.
For more information, please see our terms and conditions.
Duty and Tax amounts can vary depending on several factors. Different items may have a different duty rate due to the materials (e.g., cotton, polyester, fur) or methods (e.g., knitting, crocheting, weaving) used to create them, or due to the country of manufacture.
Additionally, Duty and Tax charges can be applied only on orders exceeding a certain value. For instance, there is currently no duty on orders destined for EU countries where the value is under 150 Euros (VAT does still apply).
Duty and tax amounts are set at a country or regional level and take into account factors such as the materials or method used to produce the goods, the country of manufacture, and their value. It may be that the specific items you are sending qualify for free trade or a duty and tax exemption in the country of destination.
For shipments that do not qualify for Pre-Paid Duties and Taxes Guaranteed you may be able to use a Delivered Duty Paid (DDP) method. Review the Bill International Duties to Payor of Shipping Charges workflow guide for more information on how to create a DDP label.
The Duty-and-Tax calculation includes import duties and carrier fees. It also covers Value Added Tax (VAT) or similar required import taxes like GST, PST, or HST that exist in different countries.
VAT and similar taxes are typically set as a percentage at the country-level and have low variability among different types of goods.
Duties are calculated on an item-specific basis, and can vary significantly for individual items depending on the item type, materials and methods used for production, country of manufacture, and item values.
When using a guaranteed Duty-and-Tax inclusive method, import fees such as disbursement fees and handling fees are also fully included. There will not be additional or subsequent fees, assuming the information provided for the items is correct.
To ensure the calculated duties are correct you will need to enter accurate customs declarations for each item in the shipment. See Customs Declarations for more information on adding harmonization codes, country of origin, and item value.
If the HS code provided is incorrect, it is possible that the duties and taxes calculated will not match the duties and taxes that are charged on import to the country of destination for the shipment. In this instance, there is the possibility that a subsequent charge for the corrected duty and tax amount will be charged to you.
No, it will not result in customs delays, Pre-Paid Duties and Taxes Guaranteed will allow shipments to pass more efficiently through customs and be delivered to their destination without the receiver being contacted.
Please note that incorrect item information, such as HS codes, item descriptions, or item values, may result in questions from customs authorities and shipment delays until resolved.