Cross-Border Shipping Rules and Regulations

United States

With effect from January 11, 2025, the United States Customs and Border Protection (CBP) will begin full enforcement of Section 321 - the ‘de minimis’ rule. CBP will now be able to identify importers who do not adhere to this regulation across all modes of transportation. According to CBP, shipments eligible for de minimis entry must meet the following criteria:

• Value is under US $800.
• The US $800 de minimis limit applies to each consignee in the U.S. by One Person or Company, on One Day.
• Consolidated shipments to a single consignee are considered as one importation, across all modes of transportation.
• Importer must declare the value on a bill of lading or similar document such as a manifest.
• This is applicable regardless of mode of transportation, across carriers, and the entry type.

Shipments found with declaration details omitted or altered with intent to avoid the daily threshold may result in potential customs clearance holds or delays in delivery. Beyond the daily threshold, please be informed that shipments will be subjected to formal entry or informal entry depending on various circumstances.

• For formal entry, Merchandise Processing Fee (MPF) and duties and taxes as imposed by the customs, as well as UPS customs brokerage fees will be billed to shipper or consignee depending on the shipment’s bill term.
• For informal entry, UPS customs brokerage fees and applicable duties and taxes will be billed to shipper or consignee depending on the shipment’s bill term.

Shipments with vague descriptions can be delayed at origin. To avoid unnecessary customs delays or unexpected charges, please ensure that accurate and detailed description of goods are provided for all your shipments.

• For guidance, descriptions of goods should include the following information:

  • What it is
  • What materials it is made of
  • What the item is used for
  • What the item’s serial or part number is, if applicable.

• You may also visit here to identify the harmonized tariff code for your goods.

If you are shipping a single commodity that is valued over $2,500 you will be required to fill out an Electronic Export Information (EEI) form. EEIs are filed electronically with ACE, either by you or UPS on your behalf.

Filing options are as follows:

• Self-file at ACE: While free of charge, you’ll need to view the UPS Port of Export Guide to determine from which port the shipment left the U.S. (required by ACE).
• Print an EEI from a UPS shipping system: This can be through the UPS.com shipping app, UPS WorldShip ^® or UPS CampusShip ^® . We’ll need you to provide us with a completed Power of Attorney form to file. A small fee will apply.
• Provide your own company's printed EEI or a completed commercial invoice. A Power of Attorney form is required, and a small fee will apply.

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Latin America

To clear customs, most countries in Latin America need the receiver’s TAX ID or identification number.

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Mexico

Effective January 1, 2025, the New General Rules of Foreign Trade will come into effect and will apply to all imports destined for the Mexican market. Please see below for more information:

• Shipments missing the below information may face customs delays and will be returned to the sender, resulting in additional charges:

  • A consignee’s TAX ID will now be required for all shipments, regardless of value.
  • Shippers must provide complete importer/consignee information, including the name, address, phone number, and email.
  • Detailed and specific commercial descriptions of the merchandise will be mandatory.

• In all imports from any origin, under the de minimis regime, taxes will be applied, except shipments from the U.S or Canada whose value is between US$1 – US$50.

• The new global rate of 19% will be applied for shipments from any country.

• If the merchandise comes from the United States or Canada and its value is between US$50 and US$117, a rate of 17% will apply.

• Imports over US$2,500 cannot be processed through the T1 customs declaration and must be made through a formal entry. Additionally, it’s important to consider that imports over US$1,000 will require the import register.

• The import of products classified under HTS codes of chapter 87 (Motor vehicles, tractors, velocipedes, and other land vehicles; their parts and accessories; including motorcycles, bicycles, wheelchairs for people with disabilities, strollers, and child seats), must be import through a formal entry.

• The import of some products subject to countervailing duties must be imported through a formal entry.

There are also specific rules for shipping consumable goods to Mexico. Your recipient will need to obtain a pre-permit from the Health Ministry to receive items sent to Mexico for human consumption.

• Medicine: Mexican customs requires the receiver to obtain a permit from the Health Department for products regardless of whether they are shipped from a company or an individual. Such items are not authorized to be exported via UPS Worldwide Standard to Mexico.
• Food: A permit is required to ship non-perishable foods to Mexico. Prior to shipping, the permit must be obtained by the receiver from the Department of Health in Mexico. Food sold as sweets have additional taxes imposed by the government.

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Canada

Canada Border Services Agency (CBSA) Assessment and Revenue Management (CARM)

Starting May 20, 2025, all commercial B2B importers and non-resident importers who have an import value for duty over $3,300 CAD, or who import targeted or controlled goods as determined by CBSA, must provide financial security directly to CBSA – either a bond or a cash deposit, in order to qualify for the Release Prior to Payment (RPP) Program.

UPS can no longer use our bond and tax ID to obtain release of the shipment. Enrollment for Low Value Shipment (LVS) valued below $3,300 CAD commercial B2B imports will be mandatory in the 4th quarter of 2025.

If customers would like UPS to help them purchase the bond, a brokerage surcharge will apply. More information can be found in the Canada Rate and Service Guide C-type entry available on UPS.com/ca.

Failure to meet this requirement may result in delays at the border and interruptions in the release of goods, where importers will have to file CARM Client Portal (CCP) is mandatory. Once set-up, importers will need to provide delegation of authority to assign various roles in the CCP, either to their employees by assigning user roles, or to service providers, including their customs broker, such as UPS.

Importers can watch this video: How to set up a delegation of authority for a third party service provider in the CARM Client Portal, to provide UPS access to their account in the CCP so that it allows us to transact business with the CBSA on their behalf.

Shipment Receiver Power of Attorney Document
The receiver will need to fill out a Power of Attorney (POA) document in the following instances:

• Commercial shipments
• Casual shipments valued above $3,300 CAD
• Shipments of restricted goods

Canada offers Non-Resident Importer status for businesses that obtain a Canadian Business Number. This means they can export to Canada without their receivers needing to fill out a Power of Attorney.

If the exporter doesn’t obtain Non-Resident Importer status, the shipment receiver will be contacted to designate a customs broker.

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European Union

VAT
Familiarize yourself with VAT regulations and the required registration process to get to the Import One Stop Shop (IOSS) platform for goods valued up to €150.

EORI Number
Europe-based businesses generally need to register for an Economic Operators Registration and Identification (EORI) number. Private individuals don’t always have to.

When exporting to the EU, the shipper will need to provide either the receiver’s EORI number (if applicable) or tax ID number:

• Bulgaria, Czech Republic, Greece, Lithuania, Romania, and UK require shippers to provide the recipient’s EORI number
• Most EU countries that do not require the consumer to have an EORI number will request the recipient’s tax ID number instead

ICS2
The EU has implemented a new release of the customs pre-arrival security and safety program, Import Control System 2 (ICS2). You can read more about ICS2 here.

To ensure compliance and a fast and efficient clearance process, it is recommended to provide:

• A 6-digit Harmonized System (HS) code for every item – we can help you determine your HS code.
• Your EU receiver’s EORI number (if applicable)
• An accurate description of the goods you are shipping – This should answer what is the item you are shipping, what it is made of and what it is intended for.

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Germany

Effective January 1, 2025, a new German postal law will require that parcels weighing between 10 and 20 kg, as well as those over 20 kg, display a clearly visible weight-class icon, for example, on the label.

To comply with this regulation, UPS shipping labels for parcels to Germany will be updated accordingly.

How to prepare:

• UPS Systems: Labels generated from UPS systems, such as UPS.com, CampusShip, WorldShip, and Ship API, will automatically include the required weight-class icon.
• WorldShip Users: Please ensure you are using the latest version, as only the most recent version will generate compliant labels.
• Custom Labels: Customers creating their own labels (e.g., Host to Host) will receive specific labeling requirements from UPS to comply with these new regulations.

Correct weight-class indication is essential for compliant labeling. It is crucial that customers provide accurate weight information when submitting shipment details to UPS.

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United Kingdom

All shipments of £600 GBP or more require an EORI number. For shipments valued less than £600 GBP, a temporary VAT number can be used.

Shippers do not need an EORI number if they are moving goods that are

• not controlled goods, AND
• for personal use only

Returns: Goods returned to the UK within two years can be done without duty and VAT, provided the item is in the same state as at the time of export

ICS2
Recent changes to the European Union’s Import Control System 2 (ICS2) does not impact most of the U.K. (England, Scotland, and Wales). However, if shipping to Northern Ireland, then data must be submitted as if the goods were going to an EU member state. This is due to there not being any border or customs clearance between Northern Ireland and the Republic of Ireland, which is an EU member.

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China

EEI
Electronic Export Information (EEI) filing is required for all shipments to China, regardless of value, and require an Export Commerce Control Number

Customs Clearance Process
All shipments require an Importer/Exporter Customs Registration Code (a 10-digit customs code) except:

• documents
• personal effects

It is especially important to have a detailed product description for shipments to China as China Customs has reinforced strict declaration.

Gifts
Gift exemptions are permitted on a case-by-case basis between individuals only. In order to clear customs, the shipper’s passport or the receiver’s China compulsory certificate (CCC) is required.

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India

Gifts and Samples

• Samples must be below 10,000 INR in value to file for duty free clearance. The term “sample” must be mentioned in the invoice for shipment.
• All shipments of gifts are subject to duties and taxes.

Shipping Medical Products
All medical products, devices, and supplies, including diagnostic kits, will require a No Objection Certificate (NOC) from the Health Department.

Shipments of medicine and vitamins require a No-Objection Certificate from the Assistant Drug Controller. Nutritional supplements require a NOC issued by the Drug Controller.

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Thailand

Effective July 5, 2024, the Thai Customs Department has commenced collecting 7% value-added tax (VAT) on imported goods into Thailand with a value ranging from 1 THB to 1,500 THB per package.

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Vietnam

Effective February 18, 2025, value-added tax (VAT) will apply to all import shipments into Vietnam, including low-value shipments valued at VND 1,000,000 and below. Low-value shipments continue to be exempted from import duties until further notice.

To ensure a smooth shipping process and to prevent any potential customs clearance delays in Vietnam, we strongly urge you to submit complete, accurate and detailed shipment information including the Harmonised System (HS) code, if any, as well as commodity descriptions and provide all relevant documentation for declaration. This will assist Vietnam Customs with determining the correct VAT charges to be applied to your shipment.

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