Understanding Customs

What is Customs?

Customs is a term commonly used in international shipping pointing to the duties, fees or taxes charged on items being shipped from one country to another. Costs can vary depending on the items and countries being shipping from and into.

Each country has its own customs rules and guidelines, but no matter where you’re shipping, our online tools will accurately let you know what to expect.

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Who pays duties, taxes or fees on international shipping?

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, fees or taxes, 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 do not have a UPS payment account, and are simply paying with a credit card, it will default to DDU, meaning the receiver will have to pay the duties, taxes and fees in order 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 responsible for these charges, we recommend you inform them of this before the transaction, to avoid any surprises. However, if the receiver does not pay, UPS may recover the outstanding amounts from you.

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Which customs forms are needed to ship internationally?

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.

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What should you do if you’re shipping special-care, dangerous or regulated products?

You will need a contract in order to ship special or dangerous goods. Learn more about how to ship special-care or regulated items.

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Are there special rules or regulations for shipping to certain countries?

Shipping regulations can vary country-to-country. We’ve outlined some general region-specific regulations, but you can also get country-specific guidelines from our handy import/export tool.

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Do you have any tips to avoid customs delays?

Include a shipment description with relevant details.
Make sure your commercial invoice includes a shipment description (describe the whole shipment and its products) as well as the product value of everything being shipped.

Send customs forms digitally.
We can help your shipment clear customs faster by transmitting your commercial invoice digitally, if you have a UPS account. (To enable Paperless Invoice, go to your account details screen. If you need an account, you can open one here.) Otherwise, be sure to print out three copies of the commercial invoice and include it with your parcel.

Find your Harmonized Tariff (HS) code.
Harmonised System Codes (or tariff codes) are used by customs authorities to identify products being shipped, so they can accurately assess any duties and taxes owed. An incorrect code can lead to customs delays or even fines.

While you don’t need to know your tariff code in order to ship, it is important that you provide an accurate, detailed description of the goods you are shipping (example: ‘men’s knitted jumper’ is better than ‘jumper’, ‘clothing’ or ‘gift’). This will allow us to determine the appropriate code for your goods.

However, to ensure accuracy, you can also look up your code before you create your shipping label.

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What are the most common UPS Brokerage surcharges that I should be aware of?

Disbursement fee, Warehouse storage fee and Additional tariff lines surcharge are the most commonly billed brokerage surcharges. For these charges, the charge applicable in the destination country will be assessed. A Duty/Tax forwarding surcharge will be charged when the duties and/or taxes are billed outside the destination country. Please see the surcharge descriptions below and the corresponding fees referenced below are for shipments destined to the U.S.

Disbursement fee: A fee of the amount paid or processed by UPS on behalf of the customer will be charged. Shipments to U.S. destinations will incur a fee of 2% of duty/tax (minimum $14.00).
Warehouse storage fee: This will be assessed when shipments remain in the UPS warehouse in the U.S. after the two free days, regardless of the customs broker. A minimum of US $25 + US $0.05 per lb. per day will apply after two days. The rate of $0.10 per lb. per day will apply after 7 days.
Additional tariff lines surcharge: A fee of $3/line applies when more than three entry lines are entered for shipments destined to U.S. destinations. UPS is not responsible for consolidating entry lines for customs clearance, including lines containing the same Harmonized Tariff Code and Country of Origin.
Duty/Tax forwarding surcharge: When the “Duty/Tax Forwarding Surcharge” billing option is selected, a surcharge of THB690.00 will be billed to the shipper.

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Provide accurate information

Complete and accurate information about your shipment is necessary to avoid customs clearance delays. Select Incoterms^® carefully, research required permits and licences, and always provide an accurate commercial invoice with complete product descriptions.

Learn more about efficient customs clearance.

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Understand customs valuation

Ensure that you understand customs valuation and its importance in avoiding customs clearance delays. Read our step-by-step guide on how to provide complete documentation in order to determine proper customs valuation.

Download the checklist

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Understand strategic goods

Ensure that you understand whether or not you are shipping strategic goods. Due to their sensitive nature, export may be prohibited altogether or subject to specific conditions. Read our guide on how to ship strategic goods reliably.

Guide to Shipping Strategic Goods

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Steel, Aluminum, and Copper

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.

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U.S. FDA Regulated Shipments

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:

1. Determine if FDA Regulation Applies (e.g. food items)
2. Prepare Required Documentation
3. File Prior Notice (PN) with the FDA before the shipment arrives to the border
4. Provide complete and accurate data on your entry submission

For more detail, visit the U.S. Food and Drug Administration web page.

Food Shipments

HTS Chapters: 7- 23 and 25

• All items must be labeled in English.

• A commercial invoice that includes complete description, country of manufacture, and value for each item must be written in English.

• Name and address of each manufacturer.

• Prior Notice must be provided for all food for humans and animals that is imported or offered for import into the United States.

  • 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.

  • UPS can also file a PNSI for you at a fee.

Cosmetic Shipments

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).

Medical Device Shipments

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