Cross border shipping refers to packages that cross international borders. This involves customs clearance and often the payment of any applicable custom duty and taxes. Shipping across the border has its challenges, but it can also provide a whole new market for selling your products.
1. Customs Clearance
When shipping from one country to another, the customs department of various countries will be stringent in enforcing their customs guidelines.
When a package arrives in the destination country, it must first clear customs. The customs process will determine the shipment’s eligibility for entering the country and check whether any duties or taxes apply. You may want to reference this list of international duty limits before you ship.
Typically the buyer is responsible for paying the duties, taxes, and any customs clearance fees. These charges vary and are dependent on the product (the item itself), the price, package weight and dimensions, origin country, and the taxes, duties, and fees of the destination country.
If your shipment is subject to duties and taxes, the recipient may be required to pay them either before or upon delivery. It is recommended to be clear and transparent with your customers by stating your policy clearly on your website and at checkout.
If you ship to the UK and EU the collection of value-added tax (VAT) is done at the point of purchase. Simply include an Import One-Stop Shop (IOSS) number for your EU shipments.
Customs has the ability to examine any package as they see fit. If any information is improperly declared, this can lead to your package being delayed or returned. Vague and generic descriptions will delay shipments and can impact delivery to your customer. This is why having a clear, detailed description and accurate value is important. Falsely declaring a shipment’s contents or value is illegal. Customers may ask you to do this so they don’t have to pay import taxes but remember, you will be liable if it is discovered.
Remember, delivery times are estimates and not guaranteed.
2. Prohibited & Restricted Items
Various countries restrict the entry of different items. It’s important to be diligent and research your products when shipping internationally.
There are differences between restricted and prohibited items. Find details in our previous blog post: Compliance: Prohibited vs Restricted.
3. International Shipping Address Format
Shipping can also take more time if you don’t adhere to the prescribed international shipping address formats. All countries have a specific address format and it’s important to understand this to avoid delays and missing information. USPS provides a great resource for international address formatting for their postage.
4. Tracking
Tracking allows you to follow your package along its journey. Depending on the service used to ship your international package, tracking may not be end to end. Read our previous blog post that breaks down how to track international shipments with Chit Chats.
By considering these factors international shipping can expand your client base and ultimately grow your business. It’s always important to do your research and understand the different nuances when shipping worldwide.