Hello, we have applied discounts to an order (see screenshot) to be shipped internationally. The discounts are reflected in the invoice sent to the customer, but the customs form generated by Shopify ignores the line item discounts and references the full non-discounted price of the products.
In this case the customer will be paying duties on an order value of $799, when the actual price they paid for their order with discounts was only $259. This is a pretty significant difference so is there any plan for Shopify generated customs forms to reflect the price actually paid by the customer?
Nick here from Shopify. Great question!
I looked into this for you and spoke to some higher level support teams about why this might be happening. The is because the customs form does not reform to the discounted price is that Shopify is defaulting the full price in the customs form, not the discounted price because it is being based on the selling price/fair market value. Another reason is that customs forms will default to the full value of a product to avoid falsifying information to governments but can be changed by store owners when filling out the forms. Some countries pay duties and tax on the full value and it is in the store owners best interest to research what is being adjusted on the customs forms to the amount paid vs the full product value.
I hope this helps and explains the why behind this for you.
All the best, Nick
Hi Nick, thanks for the response. The only issue I can see is that we have a wholesale app that uses the Draft Orders API so it shows wholesale prices by applying a discount to a product. I think at this point most wholesale apps are using the Draft API instead of duplicating variants so I imagine this could be a problem at some point.
Is there any way you know of to automate the customs form creation? Perhaps an API or other app that could take this into account?
Yes, there is a way to create a customized customs form should you need to. You would do this in the Shipping label creation aspect of an order. If you are shipping internationally you would need to complete a customs form when buying the Shipping label. You would do this by taking the following steps:
From your Shopify admin, go to Orders > Click the number of an international order that needs a separate customs declaration form > Click More actions, and then click Create shipping label > In the Items section, click Edit customs information and you will see something similar to the image below:
Shopify has a helpful guide going through all of the steps for this also which you can see here.
Hope this helps and answers your question!
Hi Nick + Shopify Team,
This question is very similar, except that I use a third party app for my international shipping. Is it possible to pass through the discount information to the third party app that is calculating customs for me? Because right now they are calculating duties based on our single unit price, which doesn't accurately reflect the customer cost when they order multiple units in bulk and receive an automatic discount from us.
Thanks for reaching out. That is a great question and I'll be honest, I am not 100% sure. I believe this is something worth asking the app developers directly since they would be the ones calculating the customs for you. Because of that, they would know their capabilities much better than anyone else.
Could you share the name of the app and I can find the app developer for you? I will also investigate this further on the Shopify side of things to see if I can find a more concrete answer for you.
I spoke to our third-party app support team about this. They mentioned that this is something you would need to talk to the app developers about. The reason for this is that Shopify has discount/price rule APIs, and discounts are serialized on orders, so for instances like this, it is a matter of what the app supports. If the app developers need support on something, they can reach out through their Shopify Partner dashboard.