5 step guide to overseas and cross-border shipping

• Customs controls what goes in and out of any given country. Most countries have similar customs requirements, so the rules are often the same, but some countries and regions can vary considerably.
• Customs declarations are essential for international parcel delivery, detailing the nature and value of the goods so that the customs authorities can determine that the correct import taxes are paid in the destination country and that the goods can legitimately enter or leave the country.

Customs officials assess duties and taxes, otherwise known as customs fees, based on information provided on the customs ‘’paperwork’’ (either physically attached to your parcels or provided electronically at the time of booking your parcel delivery with your carrier).

• Duty is a tax on goods - imposed on imports and exports of goods.
• Tax is an import VAT - is an in-country tax paid when receiving goods from abroad

Duties and taxes are imposed by countries to generate revenue, protect local industries against foreign competition, or both. The duties and taxes are usually paid before the goods are released from customs and are calculated depending on:

• Gift or sale - For e-commerce business the reason for sending a parcel internationally will likely always be ‘’sale’’.
• Product type – Customs authorities want to know what is being sent to your customer so detailing what is it, what is it made from and what is it used for all goes towards how much import tax is paid.
• Destination country – how much import VAT is paid each final destination country will have
• Incoterms – specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities – the shipper or the buyer?
• Vale of the item + cost to send the parcel – the import tax paid also considers the value of the items being received in the destination country as well as the cost the buyer or the shipper has paid for the parcel delivery and any parcel delivery cover/insurance.
• Origin Country (where was the good manufactured – not sold)

If you are an eCommerce business selling into Europe with a typical basket value of less than €150, then you can register for IOSS. It will provide your customers with greater transparency regarding import taxes during the checkout process, while enabling you to experience faster clearance and transit times. Read more about IOSS (Import One Stop Shop) here.

Incoterms specify who is responsible for paying for and managing the shipment, insurance, documentation, customs clearance, and other logistical activities. Will it be you as the seller or will your buyer be responsible? Whilst there are eleven types of incoterms terms available, the most common for e-commerce businesses are:

• Delivered Duty Paid (DDP)
  Under the DDP incoterm rules, the seller is responsible for all costs for delivering the goods to the named destination. The seller must pay both export and import formalities, fees, duties, and taxes.
• Delivered Duty Unpaid/Delivered at Place (DDU/DAP)
  Under DAP incoterm rules, the recipient of the parcel pays any applicable import fees, duties and taxes. The seller pays all freight charges. The recipient is sent a payment link to make duties and taxes payments or maybe contacted via phone for payment.

There are seven Incoterms for all modes of transport, plus another 4 which only apply to sea and inland waterway transport. For a detailed explanation of all Incoterms, refer to the International Chamber of Commerce.

• Shipper/Exporter and Receiver/Importer information: indicate the full name, full address (street, number, city, country, postal code) and contact details (phone number and email).
• Identification Number: if applicable, please indicate the Identification Number of the Shipper/Receiver, for example: VAT/GST Number and EORI Number.
• IOSS number: If selling goods to customers in the EU Import One Stop Shop is an online VAT registration scheme that simplifies the payment of VAT on goods sold to customers in the EU valued at  €150 or less.
  
• Goods Descriptions: line-item descriptions of the commodities (using detailed, precise, and plain language).
• Harmonised System (HS) Codes and Country of Origin: line-item HS Codes - also known as tariff or commodity codes - and the country of origin (typically the country in which the goods have been produced or manufactured).
  
• Values and Currency: line-item value of the goods, and additional breakdown of the applicable cost elements (e.g., insurance, freight, packaging, etc.), with the currency in which the transaction occurred
• Weight/Unit and Quantity: indicate the gross/net weight, unit (e.g., KG) and quantity (e.g., 2 items) on line item level.
• Incoterms: DDP or DAP/DDU? (or other applicable incoterm, depending on your method of shipping).
• Proof of Origin Statement: if applicable, include the Proof of Origin Statement on the invoice to qualify for preferential customs duty rates (also known as ‘Statement on Origin’, ‘Country of Origin Statement’, etc.)
• Reason for Export: e.g. Sale, gift, repair, return ect.
• Other Requirements: it is essential that you verify with your parcel delivery provider if any other requirements are applicable for your goods in the final destination country.

This will result in delays in your delivery, additional costs could be imposed or in some cases parcels are destroyed by in-country customs officials so accurate information is vital.

Customs inspections can occur for various reasons, including random checks or suspicion of non-compliance. The best way to ensure your goods are cleared quickly is to check all documentation is complete and accurate and that the packaging used is secure and clear. Be ready to respond to any queries from the Customs authorities promptly and to settle any outstanding duties and taxes.

When sending to a residential address some countries require you to supply the receiver’s personal, in-country, ID number to clear customs. The naming of this personal ID also varies by country.

Sending to a residential address within Europe: This is only applicable for shipments with a value of €150 or more.

• Cyprus – National ID number
• Estonia - Isikukood (Estonian ID)
• Finland - Social Security number
• Portugal - TAX ID / Personal ID
• Slovakia - Tax ID
• Slovenia - Personal No.
• Spain - Tax ID

Sending to a residential address, outside of Europe:

This is applicable for all shipments regardless of the parcel value

• Chile – Tax ID number
• Brazil – CPF number
• Argentina – Tax ID number
• South Africa – Tax ID number
• Saudi Arabia – Tax ID number
• South Korea – TIN (Tax ID number)
• Indonesia – Tax ID number
• China – Tax ID
• Taiwan – Tax ID

• Austria: 20% 
• Belgium: 21% 
• Bulgaria: 20% 
• Croatia: 25% 
• Cyprus: 19% 
• Czech: 21% 
• Denmark: 25% 
• Estonia: 20% 
• Finland: 24% 
• France: 20% 
• Germany: 19% 
• Greece: 24% 
• Hungary: 27% 
• Ireland: 23%
• Italy: 22%
• Latvia: 21% 
• Lithuania: 21% 
• Luxembourg: 17% 
• Malta: 18% 
• Netherlands: 21% 
• Norway: 25% 
• Poland: 23% 
• Portugal: 23% 
• Romania: 19% 
• Slovakia: 20% 
• Slovenia: 22% 
• Spain: 21%