Customs Duties Explained
What exactly are duties and taxes, and how do they work? If you're new to international shipping, this guide breaks it down clearly.
What are Customs Duties?
A customs duty is a tax on goods transported across international borders. It helps regulate imports and protect national economies.
Are duties and taxes the same thing?
Duties and taxes are both tariffs on imported goods, but they are not the same.
Taxes are typically VAT or GST, similar to sales tax, set by a country's tax authority.
Duties are product-specific tariffs set by customs authorities and vary by item type.
How are customs duties calculated?
Customs duties are typically calculated as a percentage based on:
The total purchase value of the goods.
The Harmonized Tariff System (HTS) code assigned to the goods.
The customs duty fee is calculated by multiplying the goods’ value by the HTS rate. For example, a $10,000 shipment at 4% duty equals $400.
Why do I have to declare items at customs?
Declaring items helps regulate imports and ensure compliance with local laws.
Failure to declare can result in fines, seizure, or penalties.
How does customs know what I bought?
Packages include an HS code that classifies goods and helps customs apply the correct duties.
What happens if I don't pay customs duties?
Your package will not be released. It may be stored, returned, auctioned, or destroyed.
Are there any exemptions?
Most shipments are subject to duties, but some fall under a de minimis threshold. Certain goods like alcohol or tobacco are always taxable.
Do I have to pay duties when ordering from US stores?
In most cases, you will have to pay duties and taxes when ordering from the US and importing goods into a different country (see exemptions above). However, there are other ways you can reduce costs! When you ship overseas with MyUS, you pay 0% US sales tax and can save up to 80% on international shipping with package consolidation.
Customs Duties FAQ
The de minimis value is a country-specific threshold below which no duty or tax is charged, and clearance procedures are minimal. Read our duties and taxes guide to learn more.
Harmonized System (HS) codes classify internationally traded goods. Each item in your shipment will be given an HS Code, which customs use to identify products and calculate taxes and duties accordingly.
Some products MyUS cannot legally ship internationally due to customs law, delivery company or airline restrictions, or bans specific to your country. Read our guide on prohibited and restricted items before you buy.
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