Unlike domestic shipping, international shipping introduces an extra layer of complexity. Every parcel must clear customs twice: first when leaving its origin country, and again when entering its destination.
As a shipper, providing an accurate customs declaration is the best way to ensure your package reaches its recipient seamlessly.
What is Customs?
Customs refers to the government authorities responsible for regulating the flow of goods into and out of a country. Customs regulations are mandatory, and all international shippers and receivers must comply with them.
The customs clearance process serves two primary purposes:
Security: To prevent illegal, prohibited, or restricted items from entering or leaving a country.
Revenue & Regulation: To determine if imported or exported goods are subject to local taxes and duties, and to calculate those charges.
Each country enforces its own unique customs tariffs and regulations. While it is the joint responsibility of the shipper (seller) and receiver (buyer) to comply, our customer support team is always available to help advise you if you are unsure about an item.
💡 Note: Import duties, taxes, VAT, and any administrative customs fees are legally levied by the destination government. They are not part of UrShipper's shipping rates.
Why are Import Duties and Taxes Applied?
When shipping internationally, your customer (the importer) may be required to pay duties and taxes before receiving their package. Governments collect these fees to:
Protect domestic industries from foreign competition.
Control the flow of specific products.
Generate revenue through trade tariffs.
These charges are legal obligations and must be settled before customs authorities will release a shipment for final delivery.
The Customs Clearance Process: Step-by-Step
Here is what you can expect when sending a package abroad:
[1] Declaration ➔ [2] Electronic Invoice ➔ [3] Customs Screening ➔ [4] Receiver Payment ➔ [5] Delivery
Detailed Declaration: When you create a shipping label, you will be asked to describe exactly what you are shipping.
Paperwork Generation: UrShipper automatically generates a digital Commercial Invoice and transmits it to the destination customs department ahead of arrival to speed up the process.
Customs Inspection: Upon arrival, customs officers screen the package (and perform physical checks if necessary) to ensure the contents match your declaration. They then calculate any applicable duties and taxes, which are billed to the receiver by default.
Receiver Notification: The courier or customs office will contact the receiver to request payment. In some cases, the receiver may also need to provide proof of purchase or payment.
Release & Delivery: Once all outstanding fees are settled, customs releases the shipment to continue its journey to the recipient's doorstep.
⚠️ Important Note for FedEx:
FedEx may deliver the shipment first then collect the duties/taxes later. Sender is ultimately liable to pay the duty/taxes and the customs-related fees if the receiver refuses or fails to pay. Learn more
Do Duties and Taxes Apply to All Shipments?
No. Whether a package is taxed depends entirely on the destination country's regulations and its De Minimis Value—the threshold below which goods can be imported duty-free.
What Happens If a Receiver Refuses to Pay?
If a receiver refuses to pay the required fees, the shipment becomes "Undeliverable." UrShipper will contact you to resolve the issue. If you do not provide instructions within 5 working days, the package may be automatically returned to you at your expense.
You generally have three options:
1. Abandon or Dispose of the Shipment
This is often the most cost-effective solution if the goods are of lower value. However, please note:
Some countries do not allow abandonment and force a return.
Some local authorities charge disposal fees, which will be billed back to you.
2. Pay the Outstanding Fees Yourself
To save the sale and ensure delivery, you can request that UrShipper shift the financial responsibility to you. We will arrange payment on your behalf and pass the outstanding charges to your account so delivery can proceed.
3. Return to Origin (Not Recommended)
This is typically the most expensive outcome. You will be responsible for:
The return shipping fees (which are often much higher than outbound rates).
Re-importation duties and taxes when the package enters Indonesian customs territory.
Note: The de minimis value for shipments entering Indonesia is currently $3 USD, meaning almost all returned packages will incur significant local import charges.
Pro-Tips to Avoid Customs Issues
While UrShipper and our carrier partners have zero control over government-imposed fees, you can minimize friction by following these best practices:
Set Clear Expectations: Transparently outline potential import duties and taxes in your store's shipping policy so international customers aren't surprised by unexpected fees.
Be Precise: Always provide highly descriptive goods descriptions, accurate item valuations, and correct HS Codes on your customs declarations.
Ship DDP (Delivered Duty Paid): For a completely seamless customer experience, look into shipping via DDP Incoterm. This allows you to pay duties and taxes upfront so your customer never receives an unexpected bill at their door.