What are import duties?

Import duties, also known as import taxes or tariffs, are indirect taxes imposed on goods brought into a country. These taxes protect the domestic market from foreign competition by making imported goods more expensive.

When are import duties applied?

Import duties are applied when shipping goods to countries outside the European Union (EU). For example, if you send a package to China, import duties may be levied upon arrival in China, as it is not an EU member. It's crucial to differentiate between Europe and the European Union. Not all European countries are EU members. Check the official list of EU member countries to avoid confusion.

Who pays the import duties?

Typically, the recipient of the shipment pays the import duties. This practice is known as DAP (Delivered At Place) under Incoterms, which are international commercial terms defining the responsibilities of buyers and sellers. When shipping DAP, the recipient pays all applicable duties and taxes upon receiving the goods.

Alternatively, with DDP (Delivered Duty Paid), the sender covers the import duties. This method ensures that the recipient doesn't face unexpected costs, making it ideal for shipments to charities or gifts.

Do you want to find out more about all incoterms, our customer service can give you advice and help at any time. Contact one of our agents and be sure of choosing the right incoterms. 

How to calculate import duties

ParcelParcel offers an Import Duties Calculator that provides an estimate of import duties, VAT, and customs clearance fees within 10 seconds. Simply enter the required details to get an immediate estimate.

For a more detailed calculation, consider the following:

• Customs Value: The value of the goods, including shipping and insurance costs.

• Product Classification: Each product is classified under an HS code (Harmonized System), which determines the applicable duties.

For more info, go to our: ‘’import duties calculator”. 

Import duty rates and exemptions

Understanding import duty rates is crucial for cost estimation. Rates vary by product and country, electronic items like laptops may have a 2% duty in the US but 5% in Canada. Check specific rates for accurate calculations. Some countries offer duty-free allowances, such as the EU's exemption for gifts under €45. For detailed rates, visit the European Commission webpage here.

Documentation and compliance

Proper documentation ensures smooth customs clearance. Key documents include the commercial invoice, packing list, and certificate of origin, detailing shipment contents, value, and origin. Inaccurate documentation can lead to delays or fines. Customs brokers assist in navigating regulations, essential for businesses. Learn more about required documentation at the International Trade Administration.

Understanding VAT (value added tax)

VAT is a sales tax applied to goods and services. When shipping internationally, the destination country may impose VAT based on the product type and value. Unlike within the EU, where VAT on shipping costs is standardized at 21%, international shipments outside the EU do not incur VAT on shipping fees.

Handling customs clearance fees

Customs clearance fees cover the carrier's services for processing the import duties and interacting with customs. These fees are essential for ensuring that shipments comply with all regulations and reach their destinations smoothly.

Key insights on incoterms

Understanding Incoterms, such as DAP and DDP, is crucial for smooth international logistics. These terms define who is responsible for customs duties, VAT, and clearance fees. By mastering Incoterms, you can streamline your shipping process and avoid unexpected costs.

Additional information for shippers and receivers

• HS Code Tool: Use our HS-code tool to find the correct product classification for your shipment.

• Shipping to Non-EU Countries: Remember that different rules apply when shipping to countries outside the EU. Always verify the specific import regulations of the destination country.

• Import Duties Estimator: Visit ParcelParcel's website to use our Import Duties Calculator for quick estimates on potential import costs.

By understanding and preparing for these costs, you can ensure a seamless international shipping experience. If you have any questions about import duties, VAT, or the customs clearance process, feel free to contact us via Live Chat (weekdays 08:00-17:30). Our support specialists are happy to assist you with your inquiries. You can also reach us by phone or email.