How customs charges actually add up at the destination
Last reviewed on April 27, 2026.
The shipping label is rarely the whole price. When a parcel crosses a border, the destination country may charge import duty, a sales-style tax (VAT or GST), and one or more handling or brokerage fees. The recipient pays — usually before the package is released. Underestimate this and the recipient refuses delivery; the parcel ships home and the sender swallows return shipping plus restocking.
This page walks through the components, the de minimis threshold that decides whether anything is owed at all, two worked examples, and the practical steps that minimize surprises.
A percentage of the declared value of the goods, set by the destination country and varying by product category. The product category is identified by an HS code (Harmonized System code) — a standardized international classification. Same goods, same code, very different rates depending on the country: a kitchen knife into Japan and a kitchen knife into Brazil land in different duty brackets.
Most countries charge a sales-style tax on imports. The rate is the country's standard rate (e.g., 19% in Germany, 20% in the UK, 10% in Australia, 5% in Canada plus provincial top-ups). Importantly, the tax is applied on top of the customs value plus the duty — not just on the goods price alone. We'll show that arithmetic in the worked example.
Private carriers (UPS, FedEx, DHL) charge for clearing the parcel through customs. This is separate from the duty and the tax — it goes to the carrier, not the government. Postal services (USPS handing off to the destination's postal service) generally charge a smaller flat handling fee instead. Brokerage on a small private-carrier parcel can sometimes exceed the duty owed.
A small fee for advancing the duty and tax to customs on the recipient's behalf. Some carriers fold this into the brokerage line; others itemize it separately.
Most countries set a value below which duty (and sometimes tax) is waived. Below the threshold, customs lets the parcel through without charging anything; above it, the full stack applies. The threshold is the single most useful number to know about a destination.
A few illustrative thresholds. Confirm the current value at the destination's customs authority before relying on these:
You're sending $250 USD of a craft good from the U.S. to Germany. Shipping costs $40. The HS code for this product attracts a 4% duty rate; Germany's VAT rate is 19%.
Total at delivery: $11.60 + $57.30 + ~$20 brokerage = roughly $89. The recipient pays that on top of the $250 they already paid you, before the parcel is released.
For the same parcel via USPS handing off to Deutsche Post, the brokerage is replaced by a smaller flat handling fee, which is part of why postal services are often the better choice for low-value cross-border parcels even when the transit time is longer.
By default, duties and taxes are billed to the recipient ("DDU" / "DAP" — Delivered Duties Unpaid / Delivered at Place). The carrier collects from the recipient before release. Your invoice or label can specify DDP (Delivered Duties Paid), in which case the duty/tax is billed back to you, the sender. DDP is common for B2B and cross-border e-commerce; DDU/DAP is default for personal shipments.
On the customs form:
Two practical approaches:
For most EU destinations, a useful rule of thumb is "expect 20–25% of the customs value back as VAT, plus duty if applicable, plus brokerage." For the UK, similar but with the £135 step. For Canada, much smaller — often only the brokerage matters on personal-value parcels.
Each major carrier has a landed-cost calculator on its business site. They're more accurate than a rule of thumb but require the HS code. For a one-off personal shipment, the rule of thumb is usually enough; for an e-commerce business with repeat shipments, classifying goods properly (an HS code per SKU) is worth the time.