Home > Blog > Do I Pay Duties on U.S. Packages?

By George Matthews, Marketing Director

Last updated: September 25, 2026

Yes, in most cases. A package forwarded from the U.S. travels in your name, so your country bills you, not the store. Whether you pay depends on three things: your country's duty-free cutoff, the value on the customs form, and what the item is. Taxes and courier fees often add more than the duty itself.

Has a courier ever handed you a bill bigger than the duty you expected to pay? If so, you've likely asked whether it's really you who has to foot the duties bill on U.S. packages. Read on to find out.

• Do I pay duties on packages from the U.S.?
• What are the four charges people mix up?
• Where does your country draw the duty-free line?
• How does your declared value get decided?
• How do you work out the cost before you buy?
• What actually lowers the bill?
• Are duties prepaid or paid on arrival?
• FAQ
• Know the number before you click buy

Do I pay duties on packages from the U.S.?

In most cases, yes. Who pays customs duties comes down to whose name the package travels in. A forwarded package travels in yours, so your country bills you rather than the store that sold the item. Whether money changes hands comes down to three things:

• Your country's cutoff: Every country lets goods in duty-free up to a set value, from zero to AUD 1,000 depending on where you live.
• The value on the customs form: Customs works from the declared value, not from what the item feels worth.
• What the item is: Rates change by category, and a few categories never qualify for an exemption at all.

Each of those is published, so you can work out the full cost of a package before you place an order. For the basics, see What Are Duties and Taxes on Imports?

What are the four charges people mix up?

A low duty rate sounds harmless until the bill arrives at triple that figure. Four separate charges can land on one package, and only the first is actually called a duty.

• Import duty: A percentage set by what the item is and where it was made. For many everyday goods, the rate is zero.
• VAT, GST, or sales tax: Your country's consumption tax. It applies far more often than duty, and it's usually calculated on the goods plus the duty.
• Handling or clearance fee: A flat charge for customs paperwork, such as Royal Mail's £8 in the UK or the CAD 9.95 fee Canada Post applies to every taxable item.
• Advance payment fee: What the courier charges for paying your taxes upfront. On July 20, 2026, FedEx raised this fee to the greater of $17.50 or 2.5% of the duty and tax. DHL charges a similar fee.

On a small package, the last two often beat the first two. For instance, a £40 parcel entering the UK can carry £8 in VAT and another £8 in handling, so half the bill is fees rather than tax.

Where does your country draw the duty-free line?

Every destination sets a value below which packages clear without duty, known as a de minimis threshold. These figures are current as of September 2026:

• European Union: The €150 duty exemption ended on July 1, 2026.
• United Kingdom: Duty starts above £135, while VAT applies below that line.
• Canada: Taxes above CAD 40 and duty above CAD 150 by courier from the U.S. By post, both apply above CAD 20.
• Australia: AUD 1,000, and we collect the 10% GST below it.
• New Zealand: NZD 1,000, and we collect the 15% GST below it.
• Japan: JPY 10,000, with personal purchases valued at 60% of the overseas retail price. That 60% rule ends on April 1, 2028.
• Brazil: Depends on how the store ships. See below.

Why the EU's €3 flat rate skips your package

Since July 1, 2026, stores that sell and ship to you directly pay a temporary €3 duty per item category. A forwarded package works differently, because you bought the item at a U.S. address and arranged the international leg yourself. The European Commission says the €3 rate does not apply when the buyer arranges the transport. With the old €150 allowance gone, expect the normal duty rate for your item's category.

Why Brazil's relief skips it too

Remessa Conforme covers stores registered with Brazil's tax authority, and those purchases up to US$50 now pay 0% import tax. A forwarded package travels outside the program, so Receita Federal charges 60% import tax plus state ICMS. Brazil's rules change often, so confirm before you order.

How does your declared value get decided?

The declared value is the value you write on the customs form. It starts with the price you paid. Australia, Brazil, and Japan also tax the shipping along with the goods. The UK tests the £135 line on the goods, then charges duty on goods plus postage once a package crosses it.

The number has to be right. If you don't declare the correct amount, you'll need to fix it before we can ship your package. That figure is the base your government uses for every charge in this guide.

Under-declaring costs you twice. Insurance pays out on the declared value or the invoice value, whichever is less, so a $400 camera declared at $50 is insured for $50. Customs can add seizure, fines, and extra screening on everything you ship afterward.

How do you work out the cost before you buy?

How much duty will you pay on a package from the U.S.? It takes four steps:

1. Find your cutoff: The country list above tells you whether your package clears the line.
2. Look up the rate for your category: Clothing, electronics, and leather goods carry very different rates. Your customs office's tariff tool confirms the exact figure.
3. Add your country's tax: Apply it to the goods plus the duty, not the goods alone.
4. Add the handling or advance fee: On a small package, this forgotten step often produces the largest number.

Example: a CAD 200 jacket to Canada

Say you buy a CAD 200 jacket made outside North America and ship it to Canada by courier. Under CBSA's courier rules, anything above CAD 40 gets taxed, and duty joins in above CAD 150, so this jacket pays both.

Duty at a common jacket rate of 17% adds CAD 34. Federal tax of 5% then applies to CAD 234, adding about CAD 12, with provincial tax on top in most provinces. The courier's advance fee adds roughly CAD 12 more, bringing your jacket to about CAD 258 before shipping. Rates move by category and province, so confirm the rate for your own item.

What actually lowers the bill?

There are legal ways to lower customs costs, and there are stories people repeat in forums. Here's how they separate:

• Ship through our Oregon warehouse: Oregon has no sales tax, so purchases delivered to our Tualatin, Oregon warehouse skip the roughly 10% you'd pay on a California delivery. The saving happens at the store's checkout, before customs.
• Consolidate your packages: Combining purchases into one box cuts shipping, and because several countries tax the freight, a smaller shipping bill can trim the tax too. Duty on the goods stays the same.
• Choose the shipping method with fees in mind: Post and courier charge different clearance fees, and on a low-value package that difference can be the biggest number on the bill. Compare shipping methods first.
• The gift box won't help: Gift relief (£39 in the UK, CAD 60 in Canada, €45 in the EU) only covers one private person sending to another. A forwarded purchase doesn't qualify, and marking it as a gift won't avoid duties.

Are duties prepaid or paid on arrival?

Stores that prepay your duty at checkout ship DDP (delivered duty paid). Everything else travels DDU (delivered duty unpaid), with the bill waiting at the border. Packages you forward through us travel DDU, so plan for charges on arrival.

The exception is Australia and New Zealand, where we collect the GST at mailout on shipments under the threshold and remit it for you. To tell which one you have, check your store receipt. A line for import tax or duties means the store handled it.

If you don't pay, the carrier decides what happens next. UPS clears customs in-house and adds a service fee when it collects your duty. If DHL doesn't hear from you within five days of your package arriving in your country, it can be returned or destroyed, and return shipping usually costs about triple our rates.

FAQ

What is a de minimis threshold?

A de minimis threshold is the value below which your country lets a package in without charging duty. Each country sets its own figure, which is why the same purchase clears free in Australia and carries a bill in the EU. Some countries still charge VAT or GST below the line, so a package can be duty-free but not tax-free.

Why did the courier charge me extra on delivery?

The invoice bundles the duty with the courier's handling and advance fees, which often exceed the duty itself on a small package. Couriers charge you for paying your taxes upfront so the package keeps moving. Every carrier publishes its fee schedule, so ask for an itemized breakdown to see which part is tax and which part is the courier's fee.

Does my declared value include shipping?

That depends on the destination. Australia, Brazil, and Japan tax the goods and the shipping together. The UK tests its £135 line on the goods alone, then charges duty on goods plus postage once a package crosses it. Check your country's rules, and always declare the real price you paid, since customs compares it against market prices.

If I mark the package as a gift, do I still pay?

Yes. Gift relief only covers parcels one private person sends to another, such as a relative mailing you a present. A forwarded purchase is something you bought from a store, so it never qualifies. Marking it as a gift won't avoid duties or taxes, and a false declaration can lead to fines or seizure.

Do I pay Australian GST twice?

No. We collect the 10% GST at mailout on shipments of AUD 1,000 or less and remit it to the Australian government for you, so no second bill waits at your door. If you have an ABN on file with us, we skip the collection at mailout. Shipments over AUD 1,000 are taxed at the border instead.

What happens if I never pay the bill?

The package goes back to the sender or gets destroyed, depending on the carrier. With DHL, you have five days after your package arrives in your country to respond. Return shipping then lands on you, usually at about triple our rates, so an ignored bill costs far more than the bill itself.

Know the number before you click buy

A surprise bill at the door can turn a good deal into an argument with a courier. Before you order, check your country's cutoff, check what you can't ship, and review our customs FAQ. Selling to customers abroad? Shipito for Business can help.

Open a free account and check your shipping costs, so the number at your door is one you already saw coming.