Frequently asked questions

What is the difference between DAP and DDP?

Under DAP, the seller transports the goods to the named destination, but the buyer normally handles import clearance and pays import duties and taxes.

Under DDP, the seller is responsible for import clearance and applicable import charges.

Is DDU still a valid Incoterms® rule?

No. DDU was removed from the official Incoterms® rules in 2010. DAP is now generally used instead.

Some sellers and carriers still use DDU informally to mean that import duties and taxes are not included and must be paid by the recipient.

Will I have to pay customs charges when my parcel arrives?

It depends on the shipping arrangement:

• Under DAP or DDU, the recipient normally pays.
• Under DDP, covered import charges are normally handled by the seller.
• Under PDDP, covered charges are normally paid through the postal operator.
• Under IOSS, eligible EU VAT is collected at checkout, but other charges may still apply.

What happens if the recipient refuses to pay customs charges?

The carrier may hold, return or dispose of the shipment, depending on its terms and local customs rules.

The sender may also be charged for storage, return transportation, customs processing or disposal.

Are DDP and PDDP the same?

No. DDP is an official Incoterms® rule. PDDP is a service offered by certain postal operators and carriers.

They have a similar objective—handling import charges before delivery—but their rules, availability and covered costs may differ.

Does DDP guarantee that there will be no additional charges?

DDP is intended to place responsibility for import clearance, duties and applicable taxes on the seller.

However, unexpected charges may still arise if information is incorrect, the goods are reclassified, the customs value is adjusted or a fee is outside the seller’s shipping arrangement.

Does IOSS cover customs duties?

No. IOSS is primarily used to collect and report EU VAT on eligible imported goods.

It does not automatically cover customs duties, postal handling charges, courier brokerage fees or other import costs.

Can IOSS be used for orders worth more than €150?

No. IOSS applies only to eligible distance sales imported in consignments with an intrinsic value not exceeding €150. Other VAT and customs procedures must be used when the consignment exceeds this limit.

What does intrinsic value mean?

Intrinsic value generally means the price of the goods themselves. Separately stated transportation and insurance costs are normally excluded, although the precise calculation depends on the applicable rules.

What is the EU €3 customs duty?

From 1 July 2026, certain e-commerce consignments valued at no more than €150 and imported into the EU may be subject to a temporary customs duty of €3 per tariff-classified item. It is separate from VAT and can apply whether VAT is handled through IOSS or another arrangement. Exceptions may apply.

Is the EU €3 charge applied to every parcel?

The charge is calculated per tariff-classified item rather than simply per parcel or physical product. For example, several identical products with the same classification may count as one item, while products with different classifications may result in more than one charge.

Can customs charge VAT twice on an IOSS order?

The same VAT should not normally be charged again when a valid IOSS number has been transmitted correctly. Duplicate VAT can occur if the IOSS information is missing, invalid or not transmitted electronically. The customer should retain the order invoice and proof that VAT was paid.

What should I do if I am charged VAT twice?

Keep the customs receipt, delivery documentation and original order invoice. Contact the seller or marketplace that collected the VAT. Depending on the circumstances, it may provide a refund or explain the process for recovering the duplicated charge.

Is an HS code the same as a commodity code?

The terms are often used interchangeably, but they are not always identical. The international HS system uses a standardised six-digit classification. Countries and customs unions may add extra digits to create more detailed commodity or tariff codes.

How do I find the correct commodity code?

Use the official customs tariff database for the country where the declaration will be made. You will normally need to know:

• What the product is.
• What it is made from.
• What it is used for.
• How it works.
• How it was manufactured.
• How it is packaged or presented.

If classification remains uncertain, specialist advice or a binding classification decision may be appropriate.

Can I use a general description such as “gift” or “clothing”?

A customs description should identify the actual goods. Descriptions such as “gift”, “sample”, “parts”, “accessories” or “clothing” may be too vague. A clearer description would be “men’s cotton T-shirt” or “stainless-steel bicycle component”.

Does marking a commercial order as a gift avoid customs charges?

No. A commercial purchase should not be declared as a gift. Gift relief usually applies only to qualifying non-commercial shipments sent between private individuals. Incorrectly declaring goods as gifts can cause delays, reassessment or penalties.

Can I declare a lower value to reduce customs charges?

No. Customs information must be complete and accurate. Deliberately understating a value may result in delays, additional charges, seizure of the goods or penalties.

What value should be used for a free sample or replacement?

Goods supplied free of charge may still require a realistic value for customs purposes. The correct valuation method depends on the reason for shipment and the destination country’s rules. “No commercial value” does not necessarily mean zero customs value.

What is the difference between declared value and customs value?

The declared value is the amount entered on the customs documentation. The customs value is the value determined under customs valuation rules and used to calculate duties and taxes. Customs may adjust the declared amount by including transportation, insurance, royalties or other relevant costs.

Is the country of origin where the parcel was shipped from?

Not necessarily. The country of origin is generally where the goods were produced, manufactured or sufficiently transformed under the applicable origin rules. A parcel can be shipped from one country while containing goods originating in another.

Does a trade agreement automatically mean zero duty?

No. The goods must meet the agreement’s origin rules, and valid proof of origin may be required. Simply buying or shipping goods from a country covered by a trade agreement does not automatically make them eligible.

What is an EORI number?

An EORI number identifies businesses and certain other parties dealing with customs authorities in the EU or UK. A business may need one to import, export, submit customs declarations or use customs systems.

Does an individual customer need an EORI number?

An individual importing ordinary goods for personal use does not normally need an EORI number. An EORI or another customs registration may be required for commercial activities, controlled goods or particular customs procedures.

Who can be the Importer of Record?

Depending on the destination country and shipping arrangement, the Importer of Record may be:

• The buyer.
• The seller.
• A related company.
• An authorised customs representative.
• Another eligible party.

Not every party is legally permitted to act as Importer of Record in every country.

What is a customs-clearance fee?

It is a charge for processing a shipment through customs. It may be charged by a postal operator, courier, customs broker or government authority. It is separate from customs duty and import tax.

What is a brokerage fee?

A brokerage fee is charged by a courier or customs broker for preparing declarations, communicating with customs and arranging clearance. It may apply even when no customs duty is due.

Why is the carrier charging a fee for advancing duties?

Some carriers pay duties and taxes to customs on the recipient’s behalf so that the shipment can be released. The carrier may charge a disbursement, advancement or administration fee for providing this service.

Can a shipment have zero duty but still have other charges?

Yes. A shipment can have a zero customs-duty rate but still be subject to:

• VAT or GST.
• Excise duty.
• Brokerage fees.
• Clearance fees.
• Postal handling charges.
• Storage or inspection fees.

What happens when a shipment is held by customs?

Customs or the carrier may request:

• A commercial invoice.
• Proof of payment.
• A clearer product description.
• A commodity code.
• Evidence of origin.
• An import licence.
• Identification or tax-registration information.

The shipment is normally released after the required information is provided and applicable charges are paid.

How long does customs clearance take?

Clearance time depends on the destination, carrier, type of goods and accuracy of the documentation. A routine shipment may clear quickly, while inspections, missing information, restricted goods or payment issues can cause delays.

Who is responsible for customs delays?

Responsibility depends on the cause and the agreed shipping terms. The seller may be responsible for incorrect export documents, while the buyer may be responsible for missing import information or unpaid charges under terms such as DAP.

Can customs open or inspect a parcel?

Yes. Customs authorities may inspect, scan, sample or open shipments under local law. Inspection does not necessarily mean that there is a problem with the shipment.

What happens if goods are prohibited or restricted?

Customs may hold, return, seize or destroy prohibited or non-compliant goods. Restricted goods may require licences, certificates, product registrations or other approvals before they can be imported.

What is a commercial invoice?

A commercial invoice provides customs with details of the international sale, including:

• Seller and buyer information.
• Product descriptions.
• Quantities and prices.
• Currency.
• Commodity codes.
• Country of origin.
• Shipping terms.
• Transportation and insurance costs.

It is one of the main documents used for customs clearance.

What is a pro forma invoice?

A pro forma invoice is a preliminary document commonly used for quotations, samples, gifts, temporary exports or goods supplied without a standard sale. Customs may still require a realistic value and detailed description.

Are shipping and insurance included when calculating import charges?

Sometimes. The treatment of shipping and insurance depends on the destination country and the type of tax or duty being calculated. They may be excluded from one threshold but included in the customs value used to calculate charges.

What does landed cost mean?

Landed cost is the total cost of getting a product to its destination. It may include the product price, shipping, insurance, customs duty, VAT or GST, brokerage, clearance and handling fees.

Who should I contact about an unexpected customs charge?

Start with the postal operator, courier or customs broker handling the shipment. Ask for a breakdown showing:

• Customs duty.
• VAT or GST.
• Brokerage.
• Clearance fees.
• Advancement fees.
• Other handling charges.

If the charge appears incorrect, you may also need to contact the seller, marketplace or destination-country customs authority.

Can customs rules and thresholds change?

Yes. Duty rates, tax rules, value thresholds and documentation requirements can change. Check current official guidance for the destination country before shipping or quoting a landed price.