International Shipping FAQs: Duties, Customs and Insurance
Sending something across a border raises questions that domestic shipping never does: who pays the taxes, why is my parcel stuck, and is it covered if it breaks? This international shipping FAQ collects the most common questions about duties, customs and insurance, with straight answers. Rules vary by country, product and carrier, and they change, so treat this as orientation and confirm details with the official customs authority or your carrier.
Duties and taxes
What are import duties and taxes?
When goods enter a country, the authority may charge customs duty (based on the type and value of the goods), value-added tax or sales tax, and sometimes excise or other charges. The combination is often called “landed cost” when added to product and shipping costs.
Who pays them, the sender or the recipient?
It depends on the terms agreed. Under some arrangements the recipient pays on delivery; under others, such as delivered duty paid, the sender covers them in advance. Online shops should state which applies at checkout. If it is unclear, ask before you order or ship.
How are duties calculated?
Generally from the product’s classification, its customs value (which may include shipping and insurance, depending on the country) and the rates that apply for the origin and destination. Trade agreements can reduce rates for qualifying goods.
Is there a minimum value below which no duty is charged?
Many countries have low-value thresholds, but they differ widely and have been changing. Check the destination’s official customs website for the current rules rather than relying on a number you saw online.
Why was I charged a handling fee on top of duty?
Couriers and postal operators often charge a fee for paying duties on your behalf and processing the declaration. This is separate from the government’s charges.
Can I avoid duties by marking a shipment as a gift or lowering the value?
No. Misdeclaring value or contents is illegal in most places and can lead to penalties, seizure or delays. Declare accurately.
Customs clearance
What is customs clearance?
It is the process by which customs authorities check documents, assess duties and taxes, and decide whether goods may be released. Some shipments are cleared automatically, while others are selected for document checks or physical inspection.
What information is needed?
Usually a detailed description of the goods, quantity, value, country of origin, product code where required, and the details of sender and recipient. For commercial shipments, a commercial invoice, packing list and transport document are normal; see our export documents checklist.
Why is my shipment held at customs?
Common reasons are missing or inconsistent paperwork, unclear descriptions, unpaid duties, restricted or regulated items needing permits, valuation queries or random inspection. Contact your carrier or broker, who can tell you what is being asked for.
How long does clearance take?
It can be quick when paperwork is clean and slow when documents are missing or inspection is needed. There is no universal timeframe. Build buffer into your delivery promises.
What items are restricted or prohibited?
Rules differ, but commonly restricted categories include food and plant products, animal products, medicines, weapons, certain electronics and batteries, and goods that infringe intellectual property. Check both the origin’s export rules and the destination’s import rules before sending.
Do I need a customs broker?
Not for every shipment. Couriers often handle declarations for small parcels, while larger or regulated freight benefits from a broker.
Incoterms and who handles what
What does “DDP” or “DAP” on a quote mean?
They are delivery terms. Under DAP (delivered at place), the seller delivers to the named place and the buyer handles import clearance and duties. Under DDP (delivered duty paid), the seller also handles import clearance and pays duties. Our guide to Incoterms explains the full list.
Does free shipping mean free of duties?
Not necessarily. Free shipping usually refers to the carriage charge. Import duties and taxes may still apply unless the seller has agreed to cover them.
Insurance and liability
Is my parcel automatically insured?
Carriers generally offer limited liability, often at a modest level that may not match the value of your goods, and it may exclude certain risks or items. Do not assume the full value is covered.
What is cargo insurance and do I need it?
Cargo insurance is a separate policy that can cover loss or damage during transit, sometimes against a wider range of risks than the carrier’s liability. For valuable, fragile or irreplaceable goods, many shippers consider it worthwhile. Check what is excluded, such as poor packing, delay, or certain goods.
How much insurance should I buy?
Typically based on the value of the goods, potentially plus freight and a margin, depending on the policy and sale terms. Confirm with the insurer or your forwarder.
What should I do if something arrives damaged?
1. Note the damage on the delivery receipt where possible, and take photographs of the packaging and goods.
2. Keep all packaging.
3. Notify the carrier and insurer promptly in writing, since claim deadlines can be short.
4. Gather your invoice, packing list and transport document.
5. Follow the claim procedure and keep copies of everything.
Who is responsible if goods are lost?
It depends on who holds the contract, the terms of sale and the insurance. Read your carrier’s terms, and see freight forwarder vs direct carrier for how roles differ.
Delays and tracking
Why is tracking not updating?
International parcels move through multiple handlers, and some scans are not shared across systems. Gaps do not always mean something is wrong. If there is no update for an extended period, contact the carrier with the tracking number.
What are common causes of delay?
Customs holds, address errors, weather, strikes, port or airport congestion, missed connections and peak-season volumes.
Can I change the delivery address after shipping?
Sometimes, through the carrier, with a fee or delay. Customs implications may also change.
Choosing a method
What is the difference between express, standard and freight services?
Express services prioritise speed and usually include door-to-door tracking. Standard or economy services are slower and cheaper. Freight services suit larger consignments. For larger loads, see sea vs air freight.
Conclusion
Most international shipping problems come down to unclear terms, inaccurate paperwork and assumptions about insurance. Agree who pays duties before shipping, declare goods honestly, pack well, insure what matters and keep documents for any claim. When in doubt, ask the carrier or customs authority before the parcel leaves.