A complete guide to import duty

This guide makes it simple. We’ll show you how to navigate customs with ease, manage duties and taxes, and keep your shipments moving – so you can focus on growing your business across borders.

What is import (customs) duty? 

Import duty – sometimes called customs duty – is a tax that customs authorities charge on goods when they cross international borders. It’s a way for governments to generate revenue, but it also helps protect local industries by making imported products more expensive than those produced domestically.

In practical terms, that means when your business ships goods from one country to another, customs officials may apply an import duty before your shipment is released for delivery.

How are import duties different from tariffs or import taxes? 

These terms often get mixed up, but they’re not quite the same. Here’s a quick breakdown to help you tell them apart:

Import duties

Also known as customs duties, these are taxes charged on imported goods. The rate depends on the product type, its value, and where it’s coming from.

Tariffs

Tariffs are a specific kind of import duty applied to certain goods. They’re usually a percentage of the item’s value and are often used to help protect local industries.

Import taxes

This is the broad term for all taxes on imported goods. It covers import duties and tariffs, plus other charges like VAT or sales tax.

Types of duties and taxes

Here’s a quick overview of some of the most common duties and taxes your business might encounter when shipping internationally:

How do import duties and taxes impact your shipment?

Import duties and taxes add to your total shipping cost, so it’s smart to factor them in early. They increase the landed cost of your products, and missing or incorrect paperwork can lead to delays, storage fees, or even fines.

For your customers, these charges can mean higher prices – or an unwelcome surprise at delivery if fees aren’t included upfront. Decide early whether to build them into your product price or charge them separately, and plan how you’ll communicate or pass on these costs so customers aren’t caught off guard.

How much is import tax?

The import taxes and duties you’ll need to pay depend on several factors, including:

• The value of the goods (including insurance and shipping fees)
• The goods description
• The country or region of origin
• The destination country’s tariff rates
• The goods’ HS Code(s)

Many countries also have a minimum order value – called a de minimis threshold – below which goods can enter without additional taxes or duties. If your shipment exceeds this threshold, the extra charges kick in.

Good news: you don’t have to guess these amounts. With DHL’s MyGTS tool, you can easily calculate import taxes and duties for your shipment before it leaves, helping you plan pricing, avoid surprises, and keep your customers happy.

Countries with the highest and lowest de minimis thresholds

The de minimis threshold – the value under which goods can enter duty‑free or tax‑free – varies widely by country, which can dramatically affect your shipping and pricing strategy.

Highest de minimis thresholds

• United States: Historically one of the highest at USD 800, but that duty‑free exemption ended as of August 29 2025.
• Australia: Still one of the more generous thresholds at AUD 1,000 (approx USD 670–700) for many imports.

Lowest de minimis thresholds

• Some countries have extremely low or effectively zero duty‑free thresholds, meaning all imports may be subject to duties/taxes regardless of value.
• The European Union applies VAT from “€0” on many goods, even when duties don’t apply until around €150 for certain items.
   

Country tariff rates

High‑tariff countries

Some markets charge significantly higher average tariff rates, which can add a meaningful cost and complexity for e‑commerce sellers. The Bahamas, for example, has an average tax rate of 18.56% on imported items¹.

If you’re shipping into such markets, expect higher landed‑cost add‑ons for duties – they’ll impact pricing, margin, and customer experience.

Low‑tariff countries

On the flip side, some countries maintain very low average tariffs, making them more accessible from a cross‑border shipping cost perspective. For instance, Switzerland and Japan both report tariff averages below 2–3%².

That means fewer duties to factor in, which gives you a bit more flexibility on pricing and logistics for your customers.

Who has to pay for import tax and customs duty?

When shipping across borders, knowing who pays import taxes and duties can get tricky. Let’s break it down.

Carrier

Your shipping service – for example, DHL Express – acts as a customs broker. They handle the documentation so your goods clear customs smoothly, and collect any import taxes and duties on your behalf.

Exporter and importer

In cross‑border B2C sales, you are the exporter, and your customer is the importer. Who actually pays duties depends on Incoterms – the globally recognized shipping rules agreed between exporter and carrier. The two most common options are:

• Delivered Duty Paid (DDP): You, the seller, cover shipping and all import taxes and duties.
• Delivered Duty Unpaid (DDU): You handle shipping, but the customer pays taxes and duties when the package arrives.

DDU might seem cheaper for your business, but surprise charges at delivery can frustrate customers – and hurt repeat sales.

Importer of Record

The party responsible for import compliance, paperwork, and paying duties is called the Importer of Record. In DDP shipments, that’s you; in DDU, it’s the customer.

Tip: Incorrect Incoterms are a common cause of shipping delays. Partnering with an expert like DHL Express ensures your shipments are smooth, compliant, and stress-free.
 

Key considerations when shipping internationally

• Prepare the right documentation: Accurate commercial invoices, waybills, and other documentation are essential for smooth customs clearance.
• Know the rules: Research your destination country’s customs regulations, import taxes, and duties to factor costs into your pricing.
• Pack and protect your goods: Use appropriately sized boxes, clear labels, and quality packaging to prevent damage and reduce shipping costs.
• Check for restrictions: Make sure your products aren’t prohibited or restricted, and secure any necessary permits or certificates.
• Plan for duties and taxes: Decide who pays (you or the customer) and leverage your logistics partner to calculate or even pay duties upfront to avoid delays.
• Choose a customs brokerage: Partnering with a logistics expert like DHL Express gives you access to global customs expertise, transparent costs, and tools to ensure shipments clear quickly.

For fast, international shipping, open a DHL Express Business Account.