Duties and Taxes

Learn the fundamental difference between Duties and Taxes when shipping worldwide and understand if you are always obliged to pay duties and taxes immediately.

Duties calculated

Customs duties (the customs value) are calculated on the basis of the documents accompanying a shipment (e.g. commercial invoice or preference documents) and the agreed freight costs / Incoterms from the point of entry into the European Union customs area.

For the purpose of this calculation, dutiable goods are given a classification code that is known as the Harmonized System code.

Taxation across borders

Taxes are imposed on goods when they are moved across a political boundary (although some free trade zones exist around the world).

Taxes are usually associated with protectionism, the economic policy of restraining trade between nations.

Who is responsible for payment?

The payment of Duties and Taxes are typically the responsibility of the receiver, although DHL Express does offer the opportunity for the sender to meet these costs at origin.

The sender receives an invoice after shipment delivery for the Duties and Taxes that DHL Express has paid on their behalf at destination, plus a small administration fee.

Payment Deferment

DHL Express also offers a deferment account. Customs duties generally have to be paid immediately, otherwise the shipment will not be cleared by the customs authorities. DHL Express cannot deliver the shipment to the recipient until the authorities have received payment of the requisite import duties. With a deferment account, DHL Express pays the import duties to the customs authorities and bills the recipient of the goods later. The recipient is not therefore required to pay duty or tax immediately and does not need to organise bond, cash or credit payment. In other words, a deferment account also benefits the recipient of the goods. For this service a 2% disbursement fee is applied to the import duties paid.