We’re based in Canada and had our first order from the USA. We have our “shipping” set up for 2 regions (Canada and USA). We have to input our HS codes for our products, which we will do. How do I know how much customs duty has to be paid? And who pays the duty? Us or the customer. We are on the basic Shopify plan. Where do I download a customs form? Any advice would be much appreciated. Thank you.
Topic summary
A Canadian store receiving its first U.S. order asks how to determine customs duty, who pays it, and where to get customs forms. They plan to add HS codes (Harmonized System tariff classifications) for products and are on the Basic Shopify plan.
Key points:
- By default, duties/taxes are paid by the customer upon arrival/prior to delivery (collect on delivery).
- Shopify can, if eligible, collect international duties/taxes at checkout to avoid surprise charges for customers. A resource link was provided for setup details.
- HS codes will be used for classification, but no method or tool was provided in-thread to calculate exact duty amounts.
- The question about where to download a customs form was not directly answered.
Status: Guidance provided on who typically pays and an option to collect at checkout; specifics on calculating duty and obtaining customs forms remain unanswered/ongoing.
Hey, @EsmeandSita
Great question! By default, this additional charge would fall onto the customer upon arrival at their residence/prior to being delivered. Duties/Taxes can be an unexpecting additional cost for customers that aren’t expecting it. So I definitely see why you want to clarify how it works.
The nice thing is with Shopify, if you are eligible, you can activate the ability to collect international duties/taxes from the Shopify checkout so your customer won’t be surprised with the cost down the road. Feel free to check out our resource here to learn more about the feature.
If there is anything else I can help you with, please let me know.
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