Understanding Customs
Customs refers to the duties, fees or taxes applied when shipping items between countries. These costs can vary depending on the items and countries being shipped into and from.
Changes to U.S. Customs Policy May Affect Import Costs
Effective August 29th, de minimis was eliminated for all shipments imported into the U.S. regardless of origin country or shipment value. All shipments need to go through U.S. Custom Border Protection (CBP) and could be subject to duties, taxes and brokerage fees. Typically, these costs are the responsibility of the person receiving the shipment. We’ve outlined some key details to help you understand import fees as well as the latest tariff and de minimis updates.
Who pays customs duties, taxes or fees?
Either the shipper or the receiver will be responsible for payment of duties, taxes and fees. In rare instances, these may be charged to a third party.
When the shipper pays duties, taxes or fees, it is called Delivery Duty Paid (DDP). This can improve the customer experience by providing additional clarity and transparency during the buying process. Delivery Duty Unpaid (DDU) means the receiver will need to pay.
If You’re the Shipper:
If you do not have a UPS payment account and are simply paying with a credit card, the shipment will default to DDU. This means the receiver will be responsible for any duties, taxes and fees required to receive their shipment. By opening up a UPS payment account, you can choose who will pay when you create the shipping label.
If the recipient will be covering these charges, we recommend you inform them of this before the transaction, to avoid any surprises. Please note: if the receiver does not pay, UPS may recover the outstanding amounts from you.
If You’re the Recipient:
You may have received a notice that you owe additional charges on your international shipment. We’ve compiled a list of the most common import charges along with definitions of each.
Which forms are needed to clear customs?
You will need to complete a commercial invoice, which is required for all cross-border shipments, except for documents that have no commercial value.
There may be other forms required for your shipment, depending upon the details of your shipment. We’ll provide this info and help you complete these forms online as you’re creating your shipping label. We’ve also provided an overview of the most common customs forms along with details about when each is required.
If you have a UPS account, we can transmit your customs forms digitally (to enable Paperless® Invoice, go to your account details screen to enroll your account). If you don’t have an account, you can open one here and will be automatically enrolled. Otherwise, be sure to print out three copies of the commercial invoice and include it with your package.
How to Avoid Customs Delays
An accurate and complete commercial invoice is critical for customs clearance. Here are a few other tips to avoid customs holds.
Additional Guidance for Regulated Goods
We’ve outlined a few specific items below, but we also offer a full list of hazardous or special-care items along with shipping guidance.
Many products, including their packaging, contain these metals or derivatives of these metals and must comply to the following:
- Steel articles and derivatives subject to Section 232 must include country of melt and pour, content value, and content weight.
- Aluminum articles and derivatives subject to Section 232 must include country of most recent cast, country of largest smelt, country of 2nd largest smelt, content value, and content weight.
- Copper articles and derivatives subject to Section 232 must include content value, and content weight.
Be sure to follow the required process for shipments containing food items to the U.S. that are regulated by the Food and Drug Administration (FDA). All required documentation must be accurate and complete to avoid delays, penalties, refusal of entry, and potential risk of abandonment. The FDA reviews entries to determine compliance with U.S. regulations and may require a secondary inspection.
In general, shippers must:
- Determine if FDA Regulation Applies (e.g. food items)
- Prepare Required Documentation
- File Prior Notice (PN) with the FDA before the shipment arrives to the border
- Provide complete and accurate data on your entry submission
For more detail, visit the U.S. Food and Drug Administration web page.
HTS Chapters: 7- 23 and 25
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All items must be labeled in English.
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A commercial invoice that includes complete description, country of manufacture, and value for each item must be written in English.
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Name and address of each manufacturer.
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Prior Notice must be provided for all food for humans and animals that is imported or offered for import into the United States.
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Customers are encouraged to file and provide the Prior Notice System Interface (PNSI) number as part of their shipments to avoid delays (click here for details and guide).
- It is recommended to attach the document containing the PNSI number.
- Alternatively, the number may be entered in the invoice line reference field or the invoice comments sections.
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UPS can also file a PNSI for you at a fee.
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Specific requirements apply to shipments containing cosmetics (HTS Chapters: 33, 3401, 9616)
- The product labeling must be labeled in English.
- The commercial invoice must include a complete description, country of manufacture, and value for each item / product. The commercial invoice must also include the Product Identification Number and be written in English.
- The name and address of each manufacturer must be included.
- Branded goods (patented name and / or product) must have an authorization letter from the corporate owner of the brand (if shipped by a third party).
Specific requirements apply to shipments containing medical devices (HTS Chapter 90)
- All items should be labeled in English
- Manufacturer FDA Registration Number
- Exporter FDA Registration Number.
- Name and address of the manufacturer
- Product Medical Device Listing Number
- Product PMN (510k) Number, if applicable
- FDA product code
- Intended use by importer
- Shipments containing sunglasses or lenses require an Impact Resistance or Drop Ball Certificate
Your International Shipping Guide
Everything you need to cross borders and reach new customers around the globe.