Financing, tax rates, and accounting
Hi guys, I'm in Canada and I want to do a cross border business lately, so the US is my first choice. But I am confused about duty. If I want to ship my product to my US customers, how do I pay the duty for them?
Right now, I am using canada post as my domestic carrier. But I wonder if it is more reliable than ups,dhl in international shipping? Because for my experiences, I pay duty everytime when I use dhl and ups, but I still want to know your guys 's opinion.
On the other hand, the total value of my shipments usually does not exceed the price of $800. I looked up the internet and found out that this condition exempts me from paying customs duties.https://www.cbp.gov/newsroom/national-media-release/de-minimis-value-increases-800
But in general. I'm still confused. If anyone have ideas, please help me, much appreciated.
Hi @spongebobabka,
You can take responsibility for all duties and import taxes with a DDP model (delivered duty paid), meaning the customer will pay you for these fees at checkout rather than having to deal with them themselves when the product is delivered. This reduces the chances of the product being sent to a post office or pick-up point rather than the customer's delivery address, or for them to have to pay additional fees in order to receive the product.
Not all carriers offer DDP as a service, so it is worth speaking with your shipping provider or courier to find out what options are available. There are also Shopify apps such as Zonos Duty and Tax that are set up to help you better calculate the total landed cost of your products.
I would recommend checking out the resources Shopify offers below to learn more about this aspect of international selling:
If you are unsure of what duties or import taxes you are liable to pay, we would always recommend consulting with a professional to better understand your obligations.
Victor | Social Care @ Shopify
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