How Do I Handle Duties and Import Taxes for International Shipping in Shopify?

When you sell internationally, customs authorities may charge your customers duties and import taxes when their shipment crosses borders. Shopify allows you to calculate and collect these fees at checkout, helping you provide transparent pricing, reduce refused deliveries, prevent shipping delays, and minimize disputes.

What Duties and Import Taxes Are

Duties and import taxes are government-mandated fees applied to cross-border shipments. Charges depend on the destination country, product value, HS code, country of origin, and applicable trade agreements.

Shopify Duties Calculator Transaction Fee

Current temporary fee: 0.5%

Standard fee (after reduction ends):

• 0.85% with Shopify Payments
• 1.5% with third-party payment gateways

HS Codes and Country of Origin Requirements

• HS codes and country of origin must be added to every product
• Missing HS codes cause inaccurate duty calculations
• Products without HS codes, descriptions, or categories will not calculate duties
• Admin Path: Settings → Taxes and duties → Customs information

Carriers and DDP Label Support

As of August 28, 2025, Canada Post shipments from Canada to the United States must use DDP.

• Canada Post
• DHL Express
• DHL Express Canada
• DHL eCommerce

Incoterms and Duty Collection

DDP (Delivered Duty Paid)

• Duties collected at checkout
• Prepaid to carrier
• Transparent pricing
• Lowest refusal risk

DAP / DDU (Delivered Duty Unpaid)

• Duties collected at delivery
• Higher refusal and return risk

How to Enable Duty Collection

1. Go to Settings → Taxes and duties
2. Under Duties and import taxes, click Setup
3. Confirm DDP carrier support
4. Select supported destination countries
5. Fix missing HS codes and origin values
6. Review terms and activate

Types of Customs Fees

• Customs Duty – Based on HS code and origin
• Low-Value Goods Tax – EU, UK, AU, NZ, NO, CH
• Import VAT/GST – Above de minimis thresholds
• Brokerage Fees – Not included by Shopify

Shipping Agreements

• CIF: Shipping included in duty base
• FOB: Shipping excluded (US, CA, AU, NZ, ZA)

De Minimis Thresholds

As of August 29, 2025, US de minimis no longer applies.

Special Rule: Canada from US/Mexico

• Duty threshold: $150 CAD or more
• Tax threshold: $40 CAD or more

Advanced Settings (After Enabling Duty Collection)

Admin Path: Settings → Taxes and duties → Duties and import taxes → Manage → Related settings

Preferential Trade Agreements

• Toggle: Reduce rates when preferential treaties allow
• Default: ON
• Turn OFF if you cannot provide Certificates of Origin

Postal Duty Rates (US Shipments)

• Toggle: Use postal duty rates into the United States
• Applies to all US checkouts

Section 232 Tariffs (Steel/Aluminum)

• Enter steel/aluminum percentage
• Default: 100%
• Applies only to US imports

Key Takeaways

• Add HS codes and country of origin to all products
• Enable duty collection before advanced settings
• Use DDP for transparent pricing
• Canada Post → US requires DDP (Aug 28, 2025)
• US de minimis removed (Aug 29, 2025)
• Advanced settings path: Settings → Taxes and duties → Duties and import taxes → Manage