Everything You Need to Know About 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, also known as customs duty, is a tax imposed by customs authorities on goods crossing international borders. This tax not only helps governments generate revenue but also protects local industries by making imported products relatively more expensive than domestically produced items.

In practice, this means that when your business ships goods internationally, customs officials may assess an import duty before your shipment is cleared 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, import duties and fees can result in higher costs or unexpected charges upon delivery if they aren’t disclosed in advance. Decide early whether to include these costs in your product pricing or bill them separately, and plan how you’ll communicate them clearly to ensure customers aren’t surprised.

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 set a minimum order value, known as a de minimis threshold, under which goods can enter without incurring taxes or duties. Shipments that exceed this threshold are subject to additional charges.

The good news is you don’t have to guess these costs. With DHL’s MyGTS tool, you can quickly calculate import taxes and duties before shipping, helping you set accurate pricing, prevent unexpected fees, and keep your customers satisfied.

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 other hand, some countries have very low average tariffs, making them more cost‑effective for cross‑border shipping. For example, Switzerland and Japan both have average tariffs below 2–3%.

Lower duties mean fewer additional costs to consider, giving you greater flexibility in 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 Importer of Record is the party responsible for ensuring import compliance, handling documentation, and paying any applicable duties. In DDP (Delivered Duty Paid) shipments, this responsibility falls on you, while in DDU (Delivered Duty Unpaid) shipments, it rests with the customer.

Tip: Using the wrong Incoterms is a frequent cause of shipping delays. Working with a logistics expert like DHL Express helps ensure your shipments are compliant, efficient, and hassle-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.