Troubleshooting duties and import taxes at checkout

If your collected duties and import tax are not what you expect, review these common issues.

Duties and import tax are not collected and your order indicates that duties and import tax may be collected at delivery

If you collect duties and import tax at checkout and encounter an order where no duties or tax is collected, then review whether the order matches the following scenario.

Missing or incorrect HS codes

When inaccurate HS codes are entered for products or if HS codes are missing, it might prevent duties and import taxes from being applied to the order at checkout. If duties and taxes are not applied, and the order contains a message that states that duties and import tax might be collected at delivery, then review the products in the order to verify that they have HS codes. If you encounter an unsupported HS code, then contact Shopify Support.

Duties and import tax are not collected on draft order invoices

If you collect duty and import tax at checkout and encounter an order where no duty or tax is collected on draft order invoices, then review whether the order matches the following scenario.

Shipping method selected in draft invoice

If a shipping method is selected when a draft order is created, then duties and import taxes are not applied to the order. Duties and import taxes are calculated only on the shipping selection page in your checkout. To charge duties and import taxes on a draft order, create a draft order without selecting a shipping method. The customer is prompted to select a shipping method when they complete the order, at which time duties and import taxes are calculated and applied.

Duties and import tax are calculated at 0

If you collect duties and import tax at checkout and encounter an order where duties and import tax are calculated at 0, then review whether the order matches one of the following scenarios.

Order is below the de minimis

If an order is below the de minimis threshold for a country or region, then the order is not subject to duties and import tax. Some countries include or exclude shipping from the calculation of the de minimis. If you're not sure whether the country or region you're shipping to includes these costs in de minimis calculation, then contact their tax authority or a local tax expert.

Missing tax registration

If you're registered to collect tax in the destination country or region, but you haven't entered your registration information in Shopify, then taxes on orders below the de minimis in the buyer's country are not calculated. Add your tax registration information in the Shopify admin.

Tax is collected but duties are not

If you collect duties and import tax at checkout and encounter an order where tax is collected but duties are not, then review whether the order matches the following scenario.

Order is below the duty de minimis

Some countries or regions have separate de minimis thresholds for duties and import tax. If an order is above the tax de minimis but below the duty de minimis, then it is only subject to import tax. Some countries include or exclude shipping from the calculation of the de minimis. If you're not sure whether the country or region that you ship to includes these costs in de minimis calculation, then contact their tax authority or a local tax expert.

The duties and import tax charged on the carrier invoice are greater than the duty and import tax collected at checkout

If you collect duties and import tax at checkout and encounter an order where your customer is charged less for duties and import taxes than it actually costs to ship to them, then then review whether the order matches one of the following scenarios.

Missing or incorrect HS codes

When inaccurate HS codes are entered for products or if HS codes are missing, it might prevent duties and import taxes from being applied to the order at checkout. Review the products in the order to verify that they have HS codes. If you encounter an unsupported HS code, then contact Shopify Support.

Customs authorities applied different HS codes

When your products cross a border, they might be evaluated by the destination country or region's customs authorities. These authorities might apply HS codes to your products that differ from the codes that were used to calculate duties and import tax. Review the products that have had different HS codes applied to them, and do one of the following:

  • Update your products to use the HS code that was applied by customs authorities.
  • If you're confident that the HS code that you use is correct, then contact your customs broker to investigate the cause of the discrepancy.

Product prices on the commercial invoice differ from product prices in the order

If the product prices on the commercial invoice are not the same as the prices that you charged to your customer, then the carrier might have incorrect pricing information for your products. Contact the makers of the app or integration that you use to create your commercial invoices and verify that they use the most recent product prices from your store, rather than a fixed list.

Foreign exchange rate fluctuation

The difference in value from your local currency to the currency of your customer might change in the time between when the order is placed and the time when you're charged to ship the order. Whenever there is a time delay in processing payments or refunds, there is a possibility that you might lose or gain money because of currency conversions.

You can minimize the difference caused by foreign exchange rate fluctuation by enabling your store to sell in multiple currencies. You can then use your customer's local currency on the commercial invoice.

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