Understanding Import Fees

What are import fees?

Import fees are charges that the government applies to goods imported into the U.S. Import fees can come in a few forms: duties, taxes and tariffs.

Import taxes are fees charged at a set percentage rate as established by the government. Common taxes of this kind include Value-Added Tax which can be a flat fee of 10% or 20% of additional cost, regardless of shipment characteristics.

Import duties are fees based on the shipment’s characteristics, such as value, material, or origin. Because of this, duties vary from shipment to shipment. To help ensure accurate duty charges, having an accurate Harmonized Tariff Schedule (HTS) code for the shipped goods is essential.

What are tariffs and how do they work?

Tariffs are taxes imposed by a government on imported goods, increasing their cost upon entry. These taxes serve various purposes, such as protecting domestic industries, generating government revenue and balancing trade relations. When a tariff is applied, the importer pays the additional duty at customs before the goods are released.

How do I pay the outstanding import tax and fees?

The best way to pay fees is online before delivery. Start by tracking your package on UPS.com. If a yellow banner appears, click the Pay Now link. You will be taken to a page to see details on the fees and view payment options.

Your delivery driver may also be able to accept payment at the time of delivery. However, a $12 surcharge will be applied; if so, payment options are limited.

For the best delivery experience possible and to avoid this surcharge, please pay online at UPS.com prior to delivery.

What happens if I do not pay the import taxes and fees?

UPS will attempt to collect payment from these invoices through the normal collections process. If after the collection process the invoice is still not collected from the receiver (a max 42-day process from the invoice date), the invoice will be reversed back to the origin to attempt to collect unpaid fees from the shipper.

How do I dispute a taxes or duties fee?

If you feel there is an error in the calculation of the duty and taxes assessed to your U.S. import shipment, you can contact the UPS Billing group by using the number listed on your UPS billing invoice or contact the UPS Post Entry Department at usspdutydiscrepancyreview@ups.com

Tax

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.

Duty

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.

Merchandise Processing Fee (MPF)

This fee is set by U.S. Customs and Border Protection and is based on the value of the imported goods. It helps cover the cost of processing certain imported shipments. Please note that UPS does not control this fee.

Alternate Broker Fee

This fee is charged when the shipper uses another service provider for brokerage clearance purposes but does not have a contractual arrangement with UPS to do so.

Customized Brokerage Service Fee

This fee is charged when UPS provides additional, customized brokerage services to meet specific importing and compliance needs. The fees for these customized services depend on the types of services requested.

Customs Entry Packets

This fee is applied when the customer asks for a copy of the shipment’s entry documentation.

Disbursement Fee (aka Customs Clearance Fee)

This fee covers the service UPS provides when we advance funds to pay duties and taxes directly to customs authorities. This helps speed up the clearance and delivery of your shipment.

Entry-Line Charge After First Three Lines

This fee is charged when the shipment’s Commercial Invoice includes more than three separate commodity line descriptions. UPS charges a fee for each individual line beginning after the third line.

Entry Preparation Charges

This fee is applied to Canada-to-U.S. shipments moving via ground transportation, regardless of duties owed. Entry prep fees enable UPS to provide brokerage services. These services include preparing and submitting the necessary clearance documentation to authorities so packages can clear customs.

International Collect on Delivery (COD) Fee

Packages requiring the payment of duties, taxes, and other government-related charges will be assessed an additional fee of $12 USD if those duties are not paid prior to delivery. The ICOD Fee will be charged to the U.S. recipient. Recipients can avoid this charge by paying the applicable duties electronically online at UPS.com prior to delivery.

In-Transit Bond (IT Bond)

A fee associated with transporting a shipment under U.S. Customs and Border Protection supervision until it is formally entered into the customs territory of the U.S. and duty is paid, or until it is exported from the U.S.

Marking Notice Processing

This fee is applied when special documents must be filed for a shipment which does not have Country of Origin properly marked.

Partner Government Agency (PGA) Clearance

Depending on the nature of the goods shipped, the contents may require declaration to various US government agencies. UPS charges a fee to transmit these documents to the receiving agency. PGA clearances fees are commonly required for filing with:

• U.S. Food & Drug Administration
• The U.S. Environmental Protection Agency
• Alcohol and Tobacco Tax and Trade Bureau
• APHIS Processing

PGA Disclaimer Fee

This fee is charged when UPS reviews and confirms that a shipped commodity is not subject to regulation by a Partner Government Agency and therefore does not have to file documentation on the shipment's behalf.

Post Entry Services

This fee is due when an importer requests to correct charges from U.S. Customs and Border Protection due to description discrepancy or misclassification on the customs entry.

Pre-Release Notification

This fee applies when prior contact is requested before a package clears customs or when contact is required to obtain missing information mandated by government regulations for customs clearance.

Single Entry Bond (SEB)

This fee is charged when UPS determines that a one-time import bond must be issued to ensure compliance with U.S. laws and regulations. If a Single Entry Bond (SEB) is necessary, UPS will contact the importer prior to customs clearance.

Special Handling Service (Hourly Rate)

This fee applies when additional, non-routine activities/services are required. Services offered include (but are not limited to) manipulations, labeling, inventory, auditing, customized reports, spreadsheets, key entry, general order processing, etc.

Temporary Import Under Bond

This fee covers special customs entry for merchandise to be brought into the country exempt of duty, provided the merchandise exits the country within a certain amount of time and under U.S. Customs and Border Protection supervision.

UPS Broker of Choice® Fee

This fee is charged when the shipper has a contractual arrangement with UPS to use another service provider for brokerage clearance purposes.

Warehouse Storage

This fee is charged when a shipment remains in a UPS warehouse after the standard 2 free days of storage.