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International Duties and Taxes Made Easy [Interactive Map]

For many online businesses, international shipping can be tricky with unknown regulations, prohibitions, and restrictions. But with the right knowledge, expanding those boundaries can increase your business’ revenues and provide a source of income that isn’t directly tied to your home economy.

So what do you need to understand before you take the leap?

For one thing, many foreign governments collect taxes and duties on products entering their countries. There are two main classifications for tax and duty collection: Delivered Duty Unpaid (DDU) and Delivered Duty Paid (DDP).

international shipping duties and taxes

What’s the difference?

DDU means that the recipient needs to pay duties and taxes upon the package’s arrival. They will not be able to receive their item until these charges are paid.

DDP means that duties and taxes were paid prior to shipping (either by the merchant or customer), so there are no other charges due from the recipient at delivery.

Each country’s tax and duty protocol is different, so it’s important to get a good grip on them before you send a package across borders. In some cases, countries will have a liberal duty threshold (between $500 and $1000), so that you don’t have to worry about collecting duties and taxes unless you’re shipping big-ticket items. Yet other countries don’t collect duties and taxes at all – for example, Hong Kong. Knowing which countries have conservative or liberal duty thresholds can help you plan your international expansion.

As a tool to help online businesses understand international shipping policies, we’ve created the interactive map below to navigate the taxes and duties of popular countries. Just click on your package’s destination to find out what taxes and duties to expect.

Please note: The information provided below is based on the current May 2015 duties and taxes, which may be subject to change.

 

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Legend:

  • Liberal duty threshold. This includes countries that have no duties and taxes. It also includes countries that have a higher threshold for duties and taxes – ranging between $500-1,000 in value.
  • Moderate duty threshold. This includes countries that have a duty/tax threshold between $50-500.
  • Conservative duty threshold. This includes countries where duties and taxes are always applied or which have a threshold of up to $50 in value.
  • Countries with no regular duty threshold but that assess duties by CIF (cost, insurance, freight).
 
Title Category Address Description
Hong Kong Hong Kong Hong Kong is a duty free destination. No duties or taxes are collected.
Australia Australia Shipments valued below AUD 1,000 (FOB; roughly USD 750) are given a duty and tax waiver.
Peru Peru Anything under USD 200 is duty free.
Uruguay Uruguay Anything under USD 200 is duty free.
United Arab Emirates United Arab Emirates Shipments valued under 500 AED (roughly USD 130) are free from duty and tax.
Philippines Philippines

· Duty amount payable is set at PHP 10.00 (roughly USD 0.25)
· In practice shipments valued under USD 75 and under 10 kg in weight are duty free.

Turkey Turkey Shipments valued under EUR 75 (roughly USD 80) are duty free.
Mexico Mexico Anything under USD 50 is duty free.
Canada Canada Shipments valued under CAD 20 (roughly USD 15) are duty free and tax free.
India India There is effectively no duty/tax free threshold; most shipments will be subject to a range of duties and taxes
Chile Chile Anything under USD 25 is duty free.
Malaysia Malaysia

· Customs duty and sales tax may be payable on imports.
· Customs duties are generally below 10% and are assessed on the CIF value.
· 5%, 10% or 15% of sales tax is payable on imported goods; percentage is determined upon the CIF + duty value; there are some exemptions.

Russian Federation Russian Federation

· Duty and tax depend on an individual’s monthly import activity. The monthly allowance is currently a total value of 1,000 Euro (CIF value = value of goods + shipping) or a total weight of 31 kg.
· Duty and tax are payable at a combined rate of 30% of the value in excess of 1,000 Euro.
· For items exceeding a total of 31 kg, duty and tax are payable on the excess at a rate of 4 Euro per kg.

Singapore Singapore

· There is no duty payable on most products except alcohol, tobacco products, motor vehicles and petroleum products.
· A Goods and Services Tax (GST), currently 7%, is imposed on the CIF value. The GST is waived if the total CIF value is below SGD 400 (roughly USD 300).

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