01Three charges, not one
People say “customs” as if it were a single bill. It is usually three separate things, and only one of them is duty.
Customs duty
A percentage of the customs value, set by the product’s tariff code and the trade relationship between the two countries. Clothing, shoes, bags and watches sit in relatively high bands; electronics are often lower.
Import VAT or GST
Charged on value plus duty plus (in most markets) the freight. This is the bigger number in the EU and UK — 19–21% is normal in the eurozone, 20% in the UK.
Clearance or handling fee
Charged by the carrier or the broker for filing the entry: a flat fee per parcel, or a percentage with a minimum. It appears even when the duty itself is zero.
02Country-by-country in 2026
The old headline numbers ($800, €150, £135) are widely repeated online and most of them are now out of date. This is the position as of November 2026.
| Destination | Low-value relief | What it means in practice |
|---|---|---|
| United States | Suspended. $800 no longer applies. | China and Hong Kong origin lost the allowance on 2 May 2025; it was extended worldwide on 29 August 2025. Every parcel is now dutiable. Postal shipments may be charged a flat per-item fee instead of a percentage during the transition. Section 301 additional duties can stack on top for China-origin goods. |
| European Union | Ended 1 July 2026. | Under Regulation (EU) 2026/382 the €150 duty exemption is gone. Consignments up to €150 pay an interim flat €3 per distinct tariff subheading — so a tee and a watch in one box is two subheadings, €6. Import VAT has applied since July 2021 and is usually collected at checkout through IOSS. |
| United Kingdom | £135 duty relief still available. | Qualifying consignments at or below £135 can still clear without customs duty. This is duty relief, not VAT relief: VAT is normally collected at the point of sale. Removal has been signalled for around 2028–2029, not yet in force. |
| Canada | CAD $20 duty / $40 tax | One of the lowest thresholds anywhere. Practically every parcel is dutiable, and the courier adds a brokerage fee on top. |
| Australia | AUD $1,000 duty-free | Duty rarely bites on personal parcels, but GST is collected by the seller on low-value imports, so the tax is already inside the price you pay. |
| Japan | ¥10,000 | The general allowance is ¥10,000, but clothing and footwear are assessed at a much lower threshold, so apparel parcels are commonly taxed even when small. |
Thresholds above describe ordinary personal or commercial parcels. Gifts, excise goods (alcohol, tobacco, perfume) and controlled items follow separate rules and are usually outside any allowance.
03How the number is calculated
Four inputs decide the bill. Only the first one is under your influence, and only within the law.
-
Customs value
Usually the price you actually paid for the goods, converted to local currency at the official rate. Freight and insurance are added in most markets — the EU and UK include them, the US treatment depends on the entry type.
-
Tariff classification
Each product maps to an HS code, and each code carries its own duty rate. A cotton t-shirt, a synthetic hoodie and a leather bag are three different rates even though all three are “clothing” to a shopper.
-
Origin
Duty rates are set per origin country, and additional trade measures can apply on top of the base rate. Re-routing a parcel through a third country does not change origin — the goods are still made where they were made.
-
Collection route
Postal, express courier and consolidated line each clear differently, quote differently and charge different handling fees for the same parcel.
04Who pays, and when
“Tax included” and “tax on delivery” are the two endings to every parcel, and they are priced differently.
| Route type | Who settles the charge | What to expect |
|---|---|---|
| DDP / tax-inclusive line | The line or agent, inside the freight price | Higher freight quote, nothing to pay at the door. Clearance is handled for you. This is what most dedicated “tax prepaid” EU and UK lines do. |
| DDU / standard postal | You, on delivery or by invoice | Cheaper upfront, unpredictable at the door. The carrier may hold the parcel until the charge and its fee are paid. |
| Triangle routing | The line | Goods move through a third country with EU or UK VAT prepaid. Duty treatment depends on the specific routing and is not a way around origin rules. |
Ask one question before paying freight: “Is duty and VAT included in this price, and will I be asked for money on delivery?” If the answer is vague, assume you will pay at the door.
05The risk nobody prices in
Beyond duty, customs also enforces intellectual property and product safety. That is where parcels get seized instead of taxed.
Branded goods without authorisation are treated as infringing goods in the EU, UK and US. A customs officer who recognises a logo can detain the parcel, and the rights holder decides whether to consent to release. The typical outcome is destruction of the goods, no compensation for the goods, and no refund of the freight you already paid. Duty is a cost; seizure is a total loss.
This is the one risk that no shipping-line choice removes. The practical mitigations are unglamorous: order in quantities that look like personal use, avoid mixed parcels that combine many high-recognition brands, and understand that a low declared value does not create protection — undervaluation is itself a customs offence and is a common reason parcels get opened.
If a parcel is stopped, the decision rests with the destination authority, not with the agent or the seller. No platform can guarantee release, and any that does is guessing.
06Five things that reduce surprises
Get a landed-cost quote, not a freight quote
Ask for goods + freight + duty + VAT as one number for your country. A freight quote alone tells you half the story.
Ship one clean parcel rather than three small ones
Every parcel carries its own handling fee and, in the EU, its own flat interim duty. Consolidating inside the warehouse usually beats splitting to stay under a threshold that may no longer exist.
Check the tariff band before you commit
Leather bags, watches, shoes and outerwear carry higher duty than tees or accessories. When the budget is tight, the category you choose changes the landed price.
Keep the invoice
If a value is challenged, a payment record beats a screenshot of a listing. It is also what you need if you claim on insurance.
Never treat the declared value as a lever
Under-declaring shifts risk onto you for a saving that is smaller than the fine, and it voids most insurance claims.
If you are still choosing a line, the freight side is covered in the shipping cost guide — volumetric weight, line types and realistic transit times.
Read the shipping cost guide →07Questions people actually ask
Is there any way to avoid duty legally?
Will I be charged on a parcel worth less than €150 into the EU?
Does the freight cost count towards the value?
Who pays if the parcel is shipped DDP?
What happens if the parcel is seized?
Do watches and bags cost more to import than clothes?
Keep reading
Guides on the same subject, in the order most people need them.
China Shipping Agent Cost: Weight, Lines & Customs Duty
Actual versus volumetric weight, choosing a shipping line, cutting freight, realistic transit…
Read the guide →Paying a China Shopping Agent: Methods, Fees & FX Spread
Cards, PayPal, wallets and regional options — plus how exchange-rate spread quietly becomes…
Read the guide →Returns & Refunds With a China Agent: The Three Windows
The three windows where a return is still possible, what can and cannot be returned, who pays…
Read the guide →What Can't Be Shipped From China: Batteries, Liquids & More
Why batteries, liquids, aerosols and magnets cannot leave China by post — which lines accept…
Read the guide →