Glossary
What are customs duties? E-commerce definition
June 4, 2026
Customs duties (customs duties, droits de douane) are import taxes levied 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 delivery costs. Unforeseen delivery charges degrade the experience and generate customer service disputes.
Summary
Definition: customs fees, VAT and import duties
Customs fees primarily refer to customs duties (import tariffs based 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 nomenclature). Import VAT / GST: consumption tax collected upon entry (distinct from duties, but often collected together). Customs clearance fees: administrative fees from the carrier or broker. Customs storage fees: if the package is pending customer payment.
Useful distinctions. Customs fees vs. delivery fees: postage pays for transport; customs taxes the import. Customs duties vs. import VAT: two different tax natures; VAT also applies within 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. EU intra-community: no customs duties between EU countries, but VAT applies according to distance selling rules.
In the same spirit, 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 or refused packages, or unhappy customers.
The essential points to remember are as follows. Customer experience: surprise "pay €45 to unlock 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 delivered 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 duties 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 sales 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" with "no fees on arrival" if DDU duties remain due.
In summary
The essential points to remember are as follows. Customs fees = customs duties and taxes on the import of cross-border goods. Separate from shipping costs, EU OSS VAT, and commercial invoices. 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: international sales concerned.
International delivery: cross-border transport.
Shipping fees: separate transport cost.
Shipping: process including customs documents.
Invoice: base for declared value.
FAQ
Customs duties and VAT: same thing?
No. Customs duties tax imports based on the product type. 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 the package is handed over). The merchant did not collect these amounts at checkout.
Sales from France to Germany: customs duties?
No for customs duties (both countries are in the EU). However, distance selling VAT rules apply depending on your OSS setup. Different from a sale from France to Switzerland or the United States.
How to avoid customs surprises on Shopify?
Enable 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 delivery page.
Going further
Sources: Shopify Help Center (Markets), customs and import-export taxation; validate with an accountant or customs broker depending on volumes.
Enzo
13 May 2026
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