Understanding International Customs Charges - DDU Payment Process
When shipping internationally, packages may be held by customs for additional charges before delivery can be completed. This guide explains what sellers and customers need to know about customs duties and taxes for international shipments.
Understanding Customs Duties and Taxes
What Are These Charges?
International shipments may be subject to several types of fees imposed by the destination country's customs authority:
- Government Charges: Import duties and taxes set by the destination country's government
- Sales Taxes: Local sales tax (GST/HST/VAT) applied to imported goods
- Other Government Charges: Additional regulatory or processing fees
- Carrier Brokerage Charges: Fees for the carrier handling customs clearance
- Brokerage Taxes: Sales tax applied to the brokerage services
Who Determines These Charges?
- Charges are determined by the destination country's customs authority, not by Cahoot or the carrier
- Amounts vary based on product type, declared value, country of origin, and current trade policies
- These charges cannot be avoided - they are required by international trade law
- Unfortunately, there's no way to predict exact amounts in advance
How Customers Pay UPS Customs Charges
Identifying Packages Held for Customs
Customers will see tracking statuses like:
- "Delivery Attempted: Funds Needed"
- "Held for Customs Clearance"
- "Payment Required for Delivery"
Payment Process (UPS Example)
1Go to the carrier's website (e.g., UPS.com)
2Enter the tracking number in the tracking field
3Look for a "Pay Now" button or payment option on the tracking page
4Pay using a credit card or other available payment methods
5Carrier will attempt delivery once payment is processed (usually within 1-2 business days)
Carrier Contact Information
- UPS Canada: 1-888-520-9090
- FedEx: 1-800-463-3339 (When prompted, please say “International Services.”)
- DHL: Contact local DHL office or check DHL.com
Proactive Customer Communication
Include this information in your international shipping policies and order confirmations:
"Your international order may be subject to customs duties and taxes imposed by your country's government. These charges are separate from shipping costs and must be paid directly to the carrier before delivery. Charge amounts vary by product type, declared value, and local regulations. Please be prepared to pay these additional fees when your package arrives."
Common Customer Questions & Answers
Q: Why wasn't I told about these charges before ordering?
A: Customs duties are determined by your country's government and cannot be calculated in advance. All international shipments are subject to potential customs fees.
Q: Can you pay these charges for me?
A: Currently, our system is set up so that recipients pay customs charges directly to the carrier. This is the standard international shipping process.
Q: What happens if I don't pay?
A: If payment isn't made within the carrier's deadline (typically 5-10 business days), the package will be returned to sender. Shipping costs are generally not refundable for refused international packages.
Q: Can I get a refund if I refuse the package due to high duties?
A: This depends on your return policy. Many sellers do not offer refunds for packages refused due to customs charges, as these fees are the customer's responsibility.
When Customers Refuse to Pay
If a customer refuses to pay customs charges:
- Explain that these are government-imposed charges, not optional fees
- Clarify that refusal will result in package return
- Inform them that shipping costs are typically non-refundable for refused packages
- Consider updating your international shipping policy to address this scenario
Package Tracking Shows Extended Delays
- Check if the tracking status indicates customs hold or payment required
- Contact the carrier directly using the phone numbers provided above
- Some countries have slower customs processing during peak seasons
Customer Disputes Charge Amounts
- Customs charges are set by government authorities, not by carriers or sellers
- Customers should contact the carrier directly to understand charge breakdown
- Remind customers that declared values and product classifications determine duty rates
When to Contact Cahoot Support
Contact support if:
- Package tracking shows no movement for 10+ business days
- Carrier is requesting documentation that wasn't provided with the shipment
- You need help understanding carrier requirements for specific countries
Update Your Shipping Policies
- Clearly state that international customers are responsible for customs duties
- Specify that shipping costs are non-refundable for packages refused due to customs charges
- Include estimated processing times that account for customs delays
- Consider adding a customs duties FAQ to your website
Ensure Accurate Declarations
- Provide accurate product descriptions and values in your product catalog
- Avoid understating values to reduce duties - this can cause additional delays and penalties
- Use clear, specific product names rather than generic descriptions
Educate Customers Before Purchase
- Add international shipping information to product pages
- Include customs duty warnings in the checkout process
- Consider providing links to destination country customs websites
- Send order confirmation emails with customs duty reminders
Quick Reference
Q: Can I avoid customs duties by marking packages as "gift" or lowering the declared value?
A: No. This is illegal and can result in package seizure, penalties, and account suspension. Always declare accurate values.
Q: Why do some packages get charged duties while others don't?
A: Customs authorities may randomly select packages for inspection, or certain product types/values may trigger automatic duty assessment.
Q: Can customers pay duties in advance?
A: Currently, our system uses DDU (Delivered Duty Unpaid) terms, so duties must be paid when the package arrives. DDP options are available for DHL only at this time. DDP may be available in the future for other carriers.
Q: How long do customers have to pay customs charges?
A: Typically 5-10 business days, but this varies by carrier and country. Check with the specific carrier for exact timeframes.
Q: What happens to packages that are returned due to unpaid duties?
A: Returned packages are sent back to the return address on file. For Cahoot-fulfilled orders, returns are sent back to Cahoot's return warehouse. Sellers are responsible for any return shipping costs and may need to arrange reshipment or refunds according to their policies.
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