Glossary
/
customs-duties
E-commerce customs duties: definition of import duties, DDP DDU VAT vs. shipping costs, Shopify Markets cross-border, and transparency tips.
Updated on
June 4, 2026
Customs duties (customs duties) are the import taxes collected by a country's customs authorities when goods enter its territory from abroad. In cross-border e-commerce, the customer (or the merchant in DDP mode) pays them in addition to the product price and sometimes shipping fees. Unexpected fees upon delivery degrade the customer experience and generate support disputes.
Summary
Definition: customs fees, VAT, and import duties
Customs fees mainly refer to customs duties (import tariffs depending on the nature of the product). In customer practice, the term sometimes encompasses other costs at the border.
Border components (depending on country and incoterm). Customs duties: percentage or fixed amount on market value (HS classification). Import VAT / GST: consumption tax collected at entry (distinct from duties, but often collected together). Customs clearance fees: handling fees from carrier or broker. Customs storage fees: if package is pending customer payment.
Useful distinctions. Customs fees vs shipping costs: postage pays for transport; customs taxes the import. Customs duties vs import VAT: two different tax categories; VAT also applies in the EU via OSS/IOSS on distance sales. DDP (Delivered Duty Paid) vs DDU (Delivered Duty Unpaid): DDP = merchant (or checkout) includes duties/taxes; DDU = customer pays upon delivery. Customs fees vs commercial invoice: the invoice documents the value; customs calculates the duties. B2C Import vs intra-EU trade: no customs duties between EU countries, but VAT applies according to distance selling rules.
In the same vein, HS Code (Harmonized System): product classification determining the duty rate.
Why customs fees are important in e-commerce
Selling outside your country without managing customs exposes you to blocked packages, refused deliveries, or unhappy customers.
The essential points to remember are as follows. Customer experience: surprise "pay €45 to release your package" (CX). Conversion: transparency at checkout reduces abandonment (purchase friction). Disputes: chargebacks, negative reviews, customer service tickets. Compliance: merchant reporting obligations depending on country and volume. Total cost: the customer compares the landed price, not just the site subtotal. Competition: local marketplaces sometimes include duties in the displayed price. Returns: return export procedure is more complex if customs have already been paid.
Exemption thresholds (de minimis) and rules vary by country and evolve. A cross-border merchant must monitor them with an expert or dedicated tools, without assuming "no customs under €X" without verification.
Customs duties and Shopify
Shopify facilitates cross-border commerce via Markets and the collection of taxes/duties at checkout (Shopify Help Center, Markets).
On Shopify, the settings to check are as follows. Shopify Markets: prices and taxes per target country. Shopify Tax / partners: estimated import duties and taxes (depending on country eligibility). DDP Apps: Zonos, Passport, FlavorCloud for landed cost calculation. Products: fill in country of origin, weight, HS code (metafields or apps). Documents: commercial invoice on package (delivery note + invoice). Carriers: DHL, UPS, FedEx offer DDP customs clearance services. Shipping policy: FAQ page explaining DDP vs. fees upon delivery.
Merchant checklist. Identify priority sales countries. Choose DDP or DDU and display it clearly. Complete HS codes on relevant products. Test checkout from a foreign address (VPN or test mode). Train customer service on customs-held packages and international returns. Consult an accountant / customs expert for high volumes.
EU B2C: distinguish IOSS/OSS (distance VAT) from customs duties outside the EU. Do not confuse "VAT collected at checkout" and "no fees on arrival" if DDU duties remain due.
In summary
The essential points to remember are as follows. Customs fees = duties and taxes on the import of cross-border goods. Distinct from shipping fees, EU OSS VAT, and commercial invoice. DDP (all paid at checkout) vs DDU (customer pays upon delivery). Key aspects: CX, conversion, disputes, compliance, HS code. Shopify: Markets, taxes/duties at checkout, DDP apps, carriers.
Associated terms, FAQ, and resources
Associated terms
Cross-border e-commerce: relevant international sales.
International shipping: cross-border transport.
Shipping fees: separate transport cost.
Shipping: process including customs documents.
Invoice: base of declared value.
FAQ
Customs fees and VAT: same thing?
No. Customs duties tax imports based on the product's nature. VAT (or GST) is a consumption tax, collected at import or via OSS/IOSS in EU e-commerce. The customer may pay both.
Who pays customs fees in DDU?
Under DDU, the customer pays duties, taxes, and customs clearance fees upon delivery (or before package hand-over). The merchant has not collected these amounts at checkout.
Sales from France to Germany: customs fees?
No for customs duties (both countries are in the EU). However, distance e-commerce VAT rules apply according to your OSS setup. Distinct from a sale from France to Switzerland or the United States.
How to avoid customs surprises on Shopify?
Activate Shopify Markets, estimate taxes/duties at checkout (Shopify Tax or DDP app), fill in HS codes, choose DDP if possible, and document the policy on your shipping page.
Go further
Sources: Shopify Help Center (Markets), import export customs and taxation; validate with an accountant or customs broker depending on volumes.
In brief
Customs duties = import duties and taxes on cross-border goods.
Distinct from shipping costs, EU OSS VAT, commercial invoice.
DDP (delivery duty paid at checkout) vs DDU (customer pays upon delivery).
Challenges: Customer Experience (CX), conversion, disputes, compliance, HS code.
Shopify: Markets, checkout taxes/duties, DDP apps, carriers.
Associated terms, FAQ, and going further
Associated terms
Cross-border e-commerce: relevant international sales.
International shipping: cross-border transport.
Shipping fees: separate transport cost.
Shipping: process including customs documents.
Invoice: base of declared value.
FAQ
Customs fees and VAT: same thing?
No. Customs duties tax imports according to the type of product. VAT (or GST) is a consumption tax, collected at import or via OSS/IOSS in EU e-commerce. The customer may pay both.
Who pays customs duties in DDU?
In DDU, the customer settles duties, taxes, and customs clearance fees upon delivery (or before package hand-off). The merchant did not collect these amounts at checkout.
Sales from France to Germany: customs fees?
No for customs duties (both within the EU). However, distance e-commerce VAT rules apply depending on your OSS setup. This is different from a sale from France to Switzerland or the United States.
How to avoid customs surprises on Shopify?
Activate Shopify Markets, estimate taxes/duties at checkout (Shopify Tax or DDP app), fill in HS codes, choose DDP if possible, and document the policy on your shipping page.
Go further
Sources: Shopify Help Center (Markets), import-export customs and taxation; validate with an accountant or customs broker depending on volumes.
Enzo
June 4, 2026
