Tariffs and Their Impact on International Shipping
Curious about how recent tariff and de minimis policies may impact you? UPS has the resources to help you navigate these changes and streamline your international shipping.
Changes to De Minimis
Effective August 29th, de-minimis will be eliminated for all shipments importing into the United States (US) regardless of origin or value. All shipments will require entry to Customs Border Protection (CBP) and may result in duty, tax and brokerage fees being owed.
Tariff Basics
We’re here to help you understand tariffs and help your business adapt effectively.
Why am I being charged duties and taxes and what’s the difference?
When you order something from another country, you may see extra charges on your shipment. These fees are not added by the seller or the shipping company, they are required by the government. Here’s a breakdown of the common charges and how they differ:
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A customs duty (AKA tariff) is a charge imposed by a government on goods imported into a country. These charges help regulate international trade and protect domestic industries. The amount is typically based on several factors, including the product’s harmonized tariff code, country of origin, and declared value.
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Tax, on the other hand, is an additional cost applied to products, based on a standard percentage set by the government to fund public expenditures. Common taxes of this kind include Sales Tax and Value-Added Tax.
- Sales tax is a domestic tax applied to goods and services sold within a country. It’s charged at the point of sale and collected by local or state governments.
- Value-Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production and distribution.
- Other types of taxes may apply depending on the country, such as Excise Tax, which targets specific goods like fuel or alcohol.
Who pays the tariffs?
The responsible party for payment of tariffs imposed on foreign goods is based on the Incoterms® - or “International Commerce Terms” of the shipment. Incoterms® are a uniform set of international trade standards that outline who is responsible for transportation, cargo insurance, export and import formalities, payment of duties and taxes, and at what point risk transfers from the seller to the buyer.
How will the new tariffs impact me?
US trade policy changes will likely increase landed costs due to tariffs and require adjustments to import declarations. Businesses may need to adjust pricing or explore alternative supply chains to manage costs effectively.
How can I stay compliant with new regulations?
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Provide complete and accurate commercial invoice information including:
- Product details and description of goods
- Country-of-origin/manufacture of the goods
- 10-digit Harmonized Tariff Schedule of the United States (HTSUS)
- Quantity and value of items in the shipment
- For shipments requiring formal entry, an Importer Tax ID with Employer Identification Number (EIN) or Social Security Number (SSN) is required
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Include the recipient’s email and contact information to ensure UPS can contact the recipient for collection of duty and taxes or additional forms if necessary.
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Please click here to learn more.
How UPS Helps Businesses Navigate Tariff Impacts
Don’t let duties and taxes keep your business from thriving. Our cutting edge solutions can help you navigate the challenges of tariffs and cross-border shipping.
Guaranteed Landed Cost
With the UPS® Global Checkout API, you can offer customers a guaranteed landed cost - covering all duties, taxes and fees - right at checkout.
Simplified Customs Clearance
We have the tools to help you clear customs digitally, APIs to help ensure accurate documentation, as well as a secure online portal if you do encounter a delay.
Brokerage Services and Expertise
As your business grows, our 100+ years of brokerage experience help you navigate the complexities and nuances of getting your goods across borders.
Streamline International Shipping with UPS
From tariff impacts to trade regulations, UPS is with you every step of the way.
FAQ
We’ve listed our most commonly-asked tariff and de minimis questions below. For more in-depth information, read our full Trade Policy & Tariff Changes guide.
- The White House released an executive order revising tariffs rates with trading partners. Effective August 7, 2025, new tariff rates apply for all countries listed in Annex I. Any countries not listed will have a 10% tariff. Additional tariffs on the European Union countries will apply only when the rate is below 15%.
- The White House also released an executive order increasing Canada’s tariff rate. Effective August 1, 2025, U.S. imports of goods from Canada will be charged a 35% tariff rate, up from 25%. United States-Mexico-Canada Agreement (USMCA) qualified goods continue to be exempt.
- Goods transshipped to evade these tariffs will face a 40% additional duty, plus penalties.
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Provide complete and accurate commercial invoice information including:
- Product details and description of goods
- Country-of-origin/manufacture of the goods
- 10-digit Harmonized Tariff Schedule of the United States (HTSUS)
- Quantity and value of items in the shipment
- For shipments requiring formal entry, an Importer Tax ID with Employer Identification Number (EIN) or Social Security Number (SSN) is required
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Include the recipient’s email and contact information to ensure UPS can contact the recipient for collection of duty and taxes or additional forms if necessary.
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Please click here to learn more about the respective entry type based on shipment value, requirements and applicable fees for goods originating from China or Hong Kong SAR origins.
Shipments will be subject to formal entry or informal entry depending on various circumstances. The following will be billed to the shipper or consignee depending on the shipment’s billing terms:
Formal entry (for shipments valued over $2,500):
- Merchandise Processing Fee (MPF)
- Duties and taxes as imposed by customs
- UPS customs brokerage fees
Informal entry (for shipments valued up to $2,500):
- Duties and taxes as imposed by customs
- UPS customs brokerage fees
Additional tariff resources to help prepare your shipment:
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Harmonized Codes (HS codes), also known as tariff codes
- These codes are used internationally to classify traded products and determine the tariffs, duties and taxes due
- Identify the HS code for your goods here
Electronic Export Information (EEI) forms
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If you are shipping a single commodity that is valued over $2,500 you will be required to fill out an EEI form
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EEIs are filed electronically with Automated Commercial Environment (ACE) either by you or UPS on your behalf
- ACE is the U.S. Customs and Border Protection's (CBP) online platform
- ACE connects businesses with CBP and other federal agencies
Note
At the date of this publication, polices are evolving. This content is for informational purposes only. It does not constitute legal or professional advice. Information herein was obtained from government, industry and other public sources which are subject to change and have not been independently verified by UPS and is subject to change. Recipient has sole responsibility for determining the usability of any information provided herein. Before recipient acts on the information, recipient should seek professional advice regarding its applicability to the recipient’s specific circumstances.
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