You've found something perfect in an overseas shop, placed your order — and weeks later, a courier knocks with an unexpected bill before they'll hand over the parcel. Here's everything you need to know to avoid that happening.
Contents
What Are Customs Charges?
When a parcel crosses an international border, your country's customs authority has the right to charge taxes on the imported goods. These charges typically fall into three categories:
- Import duty (customs duty) — A percentage tax based on the declared value of the goods and what type of product they are. Rates vary enormously by country and product category.
- VAT or sales tax — Most countries charge their standard VAT or goods and services tax on imported items, just as they would on domestic purchases.
- Courier handling fee — FedEx, DHL, UPS and Royal Mail often charge an administration or disbursement fee for clearing your parcel through customs on your behalf. This can be £8–£25 in the UK, or €10–€15+ in the EU, regardless of the size of the actual duty.
De Minimis Thresholds by Country (2026)
Every country has a de minimis threshold — the minimum value below which no customs duty is charged. Below this value, your parcel passes through without a duty bill. Note that VAT may still apply even on low-value imports in many countries.
| Country / Region | Duty-Free Threshold | VAT/Tax Applies? | Notes |
|---|---|---|---|
| 🇪🇺 European Union | €150 | Yes — on all values | VAT collected at checkout if seller uses IOSS; otherwise at import |
| 🇬🇧 United Kingdom | £135 | Yes — on all values | Overseas sellers must collect UK VAT at checkout on orders under £135 |
| 🇺🇸 United States | No federal VAT | De minimis rules are in flux; check current rules for shipments from your country. All commercial imports, regardless of value, are now subject to applicable duties and full customs processing. | |
| 🇦🇺 Australia | AUD $1,000 | Yes (GST 10%) — on all values | GST collected by overseas seller if registered |
| 🇨🇦 Canada | CAD $20 (tax); CAD $150 (duty) | Yes — GST/HST applies | Very low threshold — most international orders attract taxes |
| 🇧🇷 Brazil | USD $50 | Yes (60% flat tax) | One of the most expensive countries for customs on low-value goods |
| 🇨🇭 Switzerland | CHF 65 | Yes (8.1% VAT) | Not EU — has its own customs process |
| 🇳🇴 Norway | NOK 350 | Yes (25% VAT) | Not EU — VOEC scheme for overseas sellers |
Thresholds change frequently. Always verify on your national customs authority's website before ordering high-value items. The EU de minimis duty threshold of €150 has been proposed for removal — check the latest before ordering.
How Are Customs Charges Calculated?
The calculation is based on the customs value of your parcel, which in most countries is:
Customs value = item price + shipping cost + insurance
This is known as the CIF value (Cost, Insurance, Freight). Some countries (including the US and UK) use a different method — just the item value — so shipping doesn't push you over the threshold.
Once the customs value is established:
- Import duty is calculated as a percentage of the customs value (e.g. 12% for clothing entering the EU)
- VAT is then charged on the customs value plus the import duty
- The courier handling fee is added on top
Example: You order a jacket from the US to Italy. Item: €120. Shipping: €20. Customs value = €140. Below the €150 duty threshold — but Italian VAT at 22% still applies: €30.80. Plus a courier handling fee of around €12. Total surprise cost: ~€43.
7 Ways to Reduce or Avoid Customs Charges
With DDP, all import taxes are calculated and collected at checkout. You pay the full landed cost upfront and your parcel arrives with nothing more to pay. This is the single most reliable way to avoid surprises. Look for "duties included" or "DDP" at checkout. Many premium international retailers now offer this — see our directory to find them.
Since 2021, overseas retailers selling into the EU can register for the Import One-Stop Shop (IOSS) scheme. If your retailer is registered, they collect EU VAT at the point of sale and your parcel clears customs without delay or additional charges. Check the checkout for an IOSS or VAT registration number.
If your order (including shipping) is under your country's duty-free threshold, you won't pay import duty — though VAT may still apply. Consider splitting a large order into two smaller ones if necessary, placed a few days apart. Be aware that some couriers may flag this if done repeatedly.
Services like MyUS let you shop at US stores that don't ship internationally, then forward the parcel to you. They can consolidate multiple orders into one shipment, reducing shipping costs. However, the combined parcel value will be assessed for customs at your end — so factor this in. Some services also offer "suite-level" descriptions that help with accurate customs valuation.
Standard postal services (Royal Mail, national post operators) often have lower or no handling fees compared to commercial couriers like FedEx or DHL. If your order is close to the threshold, choosing a postal option can make a meaningful difference in total cost.
Not all goods are taxed equally. In the EU, children's clothing attracts 12% import duty, while books are zero-rated. Electronics vary: laptops may be duty-free under the WTO Information Technology Agreement, but smartwatches attract duty. If you're ordering something expensive, check the duty rate using your government's tariff lookup tool first.
Many countries have a separate, lower gift threshold for parcels sent person-to-person. For example, in the UK gifts up to £39 from an individual overseas can be duty and VAT-free. However, commercial orders labelled as "gift" are illegal and can result in your parcel being seized. Only use this route for genuine personal gifts.
What Is DDP Shipping — and Which Retailers Offer It?
DDP stands for Delivered Duty Paid. It's an international shipping term (from the Incoterms rules) that means the seller takes full responsibility for getting the goods to you, including paying all import duties and taxes at the destination country.
From a shopper's perspective, it means: no surprise bills on delivery.
Retailers and brands that commonly offer DDP shipping to many countries include:
- Farfetch — luxury fashion, DDP to most countries
- Net-a-Porter — designer fashion with duties included
- Nordstrom — US department store, ships to 200+ countries
- Bloomingdale's — via Borderfree, duties shown at checkout
- Saks Fifth Avenue — international shipping with taxes included
- Amazon — varies by marketplace; check product pages for "Import fees deposit" at checkout
What to Do If You're Incorrectly Charged
If you believe customs has charged you incorrectly, you have the right to appeal. Here's how:
- Gather your evidence — keep the original retailer receipt, the shipping invoice, and any packaging documentation showing the declared value.
- Check the valuation basis — customs charges must be based on the transaction value (what you actually paid), not an estimated market value. If they've used the wrong figure, this is grounds for a refund.
- Check the product classification — if the product has been classified under the wrong commodity code and over-taxed as a result, you can appeal this.
- Contact your national customs authority — in the UK this is HMRC; in the EU it's your country's customs office (e.g. Agenzia delle Dogane in Italy, Zoll in Germany); in the US it's CBP.
- Act quickly — most countries have a time limit (typically 30–90 days) for disputing a customs decision.
Courier handling fees are charged by the courier, not the customs authority, and are generally non-refundable even if the duty itself is later waived.
Frequently Asked Questions
Do I always pay customs on international orders?
No. If the value of your order is below your country's de minimis threshold, no import duty is charged. However, VAT or sales tax may still apply depending on where you live.
Does Amazon charge customs?
It depends. Amazon may show an "Import fees deposit" at checkout for international orders — this means they're handling the customs clearance for you. If this is shown at checkout, no further payment is required on delivery. If it's not shown, you may receive a bill from the courier when the parcel arrives.
Can customs charges be refunded?
Yes, in certain circumstances. If you return an item, you may be able to claim back the import duty paid. You'll need documentation from the retailer confirming the return. Contact your national customs authority for the correct process.
What happens if I refuse to pay customs charges?
The parcel will typically be held by the courier or customs authority. If uncollected after a certain period, it may be returned to the sender (who may charge a return shipping fee) or destroyed. Refusing to pay does not mean the charges go away.
Do SHEIN, Temu and similar low-cost retailers charge customs?
It varies. Many low-cost Asian retailers have historically shipped in ways that kept orders below de minimis thresholds. However, many countries including the US and EU have changed or are changing their rules, so always check the checkout carefully and factor in the possibility of additional charges on arrival.
What is the best country to shop from to avoid customs?
This depends on where you live. If you're in the EU, shopping from other EU countries means no customs at all — goods move freely within the single market. Outside the EU, look for retailers registered for IOSS (EU) or UK VAT, as this means taxes are collected at checkout rather than on delivery.
Find International Stores That Deliver to You — Duties Included
Browse our directory of international online stores. Filter by your country to find retailers that offer DDP shipping with no surprise customs charges on delivery.
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