International Shipments, Understanding Taxes & Duties
International Shipments: Taxes and Duties
Shipments entering the U.S. with a retail value under $800 USD generally do not incur taxes and duties. However, various factors can influence duties and taxes for international shipments, such as:
- Destination country
- Shipment value
- Shipment contents (both in terms of items and content type like Merchandise, Gifts, Returned Goods)
Accurate and clear declarations of shipment contents and values are crucial for seamless customs processing.
De Minimis (Import Limits)
Each country has specific import limits (de minimis). As a shipper, you should be aware of these limits before shipping. For instance, shipments to Australia exceeding $1000 AUD might necessitate formal customs clearance, leading to additional fees. Refer to this list of international duty limits for more information.
Paying Taxes and Duties
Should duties and taxes apply, recipients might need to settle them before or upon delivery. These can delay delivery times due to extended customs clearance. Most postage options don't allow for pre-payment of these fees, categorizing them as delivered duty unpaid (DDU) services. If recipients decline to pay the duties, shippers are liable for any customs fees.
For certain destinations, like the European Union (EU) and Great Britain, advance payment of taxes and duties is possible, known as delivered duty paid (DDP). The Chit Chats International Tracked service offers DDP postage for select destinations.
Customs Tax Reference Numbers
Businesses selling to the EU and UK should collect value-added tax (VAT) at the point of purchase and provide an Import One-Stop Shop (IOSS) number for EU shipments. Learn more about this here.
When creating shipments for these regions via your Chit Chats account, you can enter a customs tax reference number (up to 15 characters).
Retail value limits for customs tax requirements are:
- UK Addresses: $220 CAD
- EU Addresses: $215 CAD
Note: Values can vary due to currency exchange rates.
For packages exceeding these values, choose a DDU postage option. Not providing an IOSS number might result in additional fees, delays, or non-delivery.
Important Reminder
Chit Chats International Tracked shipments are labeled as "Merchandise" on customs declarations. They aren't suitable for gifts. For international gifts, consider our USPS international postage options. However, USPS International postage is currently unavailable for the EU, Great Britain, and Ireland.