How do customs duties affect worldwide dropshipping from China?

alinazaluika
Tourist
9 0 1

I plan to dropship from China worldwide, but I don't have an understanding of custom duties in this case. Someone, please explain! Would be so thankful! Some say: "Best answer I can come up with? Don't drop ship from China. Contract with or create a distribution company in the US, bulk ship your product from China to them. Pay duties and taxes once, not hundreds of times. Not only will you save a ton of effort with customs on both sides, you may qualify for a lower price per item. Obviously, you'll need good connections in the US for this, but trying to run everything from China is a good way to go broke while going crazy." But I'm not planning to stay in Russia or anythere this year or next so I can't hold any warehouse and dropshipping seems as a good option here, but does it? How much it can cost me? Also another opinion was: "you don't have to pay tax if you are buying under a certain amount. While drop shipping, you only ship one or a few pieces at a time, correct? If so, no tax." Even if there is no tax still other costs are high. How custom duties work when you dropship from China worldwide and if there are complications how to solve them? Or how it's usually done?

Replies 3 (3)

dropship_helps
Shopify Expert
1823 56 280

Hi @alinazaluika 

 

The custom duties and taxes only the buyer responsible. 

ShipAntdotcom
Pathfinder
168 6 16

The custom duties mainly refers to EU countries and Canada. You can make note in the store but it still affect the refund rates and package abandon rates due to the custom tax. 

 

If you dropship from China to EU or Canada, I suggest you apply prepaid tax solution if you do not register VAT and add the cost into the product price, in this case, your clients wont need to pay tax again and it also save you lots of aftersale time.

ShipAnt.com - Chinese dropshipping agent - reliable sourcing agent

Pablo1801
Excursionist
15 1 0

Hi Alina, how did you end up resolving your issue?