What are Duties and Taxes?
When transporting goods across international borders, shipments are subject to duties and taxes as determined by customs in the destination country.
Shipper’s Guide to Duties and Taxes
When shipping internationally it’s important to understand duties and taxes.
Whether a shipment is a gift or not, it must still go through an import procedure as determined by customs law in the destination country.
The calculation of duties depends on the assessable value of a dutiable shipment. For the purpose of this calculation, dutiable goods are given a classification code that is known as the Harmonized System code.
This system has been assigned by the World Customs Organization and continues to evolve.
|Who is Responsible for Payment?|
The payment of duties and taxes are typically the responsibility of the receiver, although DHL Express does offer the opportunity for DHL account holders to pay for them.
In that case, after shipment delivery, DHL invoices customers for the duties and taxes we paid on their behalf at destination, plus a small administration fee.
|Taxation Across Borders|
Taxes are imposed on goods when they are moved across a political boundary (although some free trade zones exist around the world). Taxes are usually associated with protectionism, the economic policy of restraining trade between nations.
Taxes are usually imposed on imported goods, although at times may also be imposed on exported goods.
Receiver’s Guide to Duties and Taxes
Did you receive a package and need to understand your obligations to pay duties and taxes?
|Goods Purchased Online for Personal Use|
You may be charged customs duties and taxes for something purchased online because:
Duties and taxes are most typically not included in the price of the goods you purchase online, and might not be included in the overall shipping costs you pay to the online retailer.
When purchasing goods online, some or all of these goods may not originate in the country you reside in, therefore are subject to a customs duty, which is a tariff or tax imposed on goods when transported across international borders.
When goods are not shipped domestically (within your country) or within a single customs union, such as the European Union, you are liable to pay any inbound duties and taxes which your local customs authority deems appropriate.
To ensure the DHL courier can deliver your goods in shortest possible time after entering your country or customs union, DHL pays the customs authority on your behalf for any duties and taxes that are due on the goods.
Once the duties and taxes are fully repaid to DHL the goods will be delivered to you
What is payable, if anything, depends on where the goods are sent from, the type of goods, their transactional value and the weight of the package
When buying goods online, you should always check whether they are either being sent to your address from:
Outside your customs union country
Note: Different rules apply when buying goods for commercial use.
|Gifts Bought Online|
A gift is defined as something sent directly by one private individual to another and such goods do not attract import tax if the value is below stated local thresholds.
Ordering and paying for goods that originate outside of your country or customs territory for shipping to a person other than the purchaser, does not satisfy the customs definition of being a gift.
For more information on importing goods into Canada for personal use please visit the Canada Border Services Agency’s website.