Customs Clearance Fee

Solved
Highlighted

Hey guys,

 

I have another business where I'm importing a consumer electronic. I ordered a sample and was charged a customs clearance fee by DHL.

 

My question is, how do I handle this for my customers? Will I have to pay a customs clearance fee every single time a customer's product arrives at their destination? Will my customers have to pay it? Is there a way I can include this in my product cost and then pay DHL ahead of time so my customer doesn't have to pay it?

 

Any help appreciated,

 

Thanks

1 Like
Highlighted
Shopify Staff
Shopify Staff
407 39 113

This is an accepted solution.

 

Hi @Yugen,

 

Thank you for reaching out with your question! This is a common query for merchants selling into other customs areas, and there are a few things you'll want to consider when approaching this.

 

Firstly, if a customer orders a product from another country from which duties must be applied, they are usually the ones who will be required to pay any extra customs fees upon delivery. If this is the case, you'll want to ensure that you mention this on your website - if you had an FAQs page, for example, you can mention here that orders to certain regions may include customs fees.

 

Some couriers do allow for merchants to shoulder the cost of any duties that will be applied, so if it looks like this is going to be a regular occurrence for your customers and you have this option, you may wish to absorb this cost yourself and adjust the prices of your products accordingly. You could then advertise this to customers and assure them that any customs fees will be covered by yourself and that they won't need to worry about any extra charges upon delivery.

 

You can check out our Help Centre article on duties here which provides more information on this. I'd also suggest taking a look at DHL's Shipper’s Guide to Duties and Taxes - from a cursory look, it seems they do indeed offer the option for merchants to accept the charges for duties rather than the customer through their DHL Express service.

 

I hope my advice proves helpful but please do let me know if you have any further questions.

 

Kind regards,

 

Victor | Shopify Social Care

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted

@Victor Thanks so much for your replay. It was super helpful. I have added the message on my site to let my customers know they may have to pay a small customs clearance fee. 

1 Like
Highlighted
Shopify Staff
Shopify Staff
407 39 113

 

Hi @Yugen,

 

No problem at all! I think that's probably the best solution - most consumers who regularly buy from abroad will be aware of potential customs taxes, but it's a solid idea to mention it on your site so they are aware that it's a possibility. It's more common for buyers to cover the costs so I don't think it'll work against you in any way by being transparent about this.

 

Thanks again for reaching out and have a great end to your week!

 

Kind regards,

 

Victor | Shopify Social Care

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
Shopify Partner
555 1 14

Let me get into little depth. DHL API allows options for duty payment by : 
- Shipper

- Recipient
- Third Party

 

In addition, there are various options of Duty Payment Type : 
- Delivered at Place

- Delivery Duty unpaid

- Ex works 

- Free Carrier
- Carriage Paid to

- Carriage and insurance paid to

- Delivered at Terminal

- Free Alongside Ship

- Free on Board

- Cost and Freight

- Cost Insurance & Freight

 

So you can see with the option of who pays duties to Duty payment type, everything is streamlined in the DHL API. In order to avail these features, you need to use a solution that makes use of the complete DHL API. You can try the Multi Carrier Shipping label app for this.

 

Product Owner @ PluginHive
Shipping Automation | FedEx shipping | Multi-carrier shipping | Shipment Tracking | Australia Post shipping
2 Likes
Highlighted
Tourist
3 0 2

So I just tried using DHL for the very first time because it popped up as a very reasonable option.  The customer paid $95 (USD) for the product and that is the full retail price.  DHL sent a message to my customer saying they owed $47 (Canadian dollars) in duties on this $95 product.  The exchange rate for USD and CAN dollars is pretty even so this is not a currency issue.  Our research shows that there should not be any additional charges if the value is $200 Canadian dollars or less.  We believe DHL is unfairly charging the customer to make up for such a low shipping rate.  Is there any way to dispute this?  We will make everything right for our customer regardless but I think Shopify should be aware that DHL does this and perhaps should reconsider offering DHL as a shipping option.

1 Like
Highlighted
Shopify Staff
Shopify Staff
407 39 113

Hi @purlandloop,

 

Thank you for bringing this to our attention. Is this something you've spoken to DHL about? I'd be interested in hearing their justification and explanation for this. If you haven't spoken with them, I'd recommend reaching out to them and asking why the customs fees were so high.

 

Kind regards,

 

Victor | Shopify Social Care

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes
Highlighted
Excursionist
42 1 3

Hello! I would like to share with you a Lifesaver App!: You can Upload Unlimited Tracking Info To PayPal 100% Automation 💪
Amazing Shopify App that will save your Paypal account from Disputes and Holds! ( Because Paypal will hold your funds if they see that you didnt enter tracking info for each transaction: tracking number + Shipping company)
So this app offers one-click automation, you set it up once and it will automatically synchronize tracking between your Shopify store and your PayPal account.
More information here > > https://synctrackinginfo.com


@Yugen wrote:

Hey guys,

 

I have another business where I'm importing a consumer electronic. I ordered a sample and was charged a customs clearance fee by DHL.

 

My question is, how do I handle this for my customers? Will I have to pay a customs clearance fee every single time a customer's product arrives at their destination? Will my customers have to pay it? Is there a way I can include this in my product cost and then pay DHL ahead of time so my customer doesn't have to pay it?

 

Any help appreciated,

 

Thanks




Good Luck!

0 Likes
Highlighted
Tourist
3 0 2
My Canadian customer replied to DHL but they never replied to her. I went on the website and it was virtual circle of no information. We only became aware of the duties once DHL picked up the package. Per info we found about the duties, the package was well below the threshold of $200 CAD and no duties should have been imposed. I reimbursed the customer for these costs and we agree not to ever use DHL ever again. It was the swiftest action that would preserve the customer relationship I could take.

Angela
1 Like
Shopify Staff
Shopify Staff
407 39 113

Hi @purlandloop,

 

Thank you for providing an update and I'm sorry to hear that this happened. It's difficult for us to offer too much guidance on this as the customs duties applied are passed on by DHL—it certainly seems that the customer may have been incorrectly charged in this instance, but we wouldn't be able to offer further insight into this. I'd suggest trying to reach out to DHL directly if you have not done so already.

 

If you have any further questions on this, please let me know.

 

Kind regards,

 

Victor | Shopify Social Care

 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

0 Likes