Different than local or domestic shipping, international shipping has an added level of complexity – a parcel has to pass through customs when it leaves its origin country, and it must pass through customs again to enter the destination country. As a shipper, you want to ensure you declare what is being shipped so your package makes it to the recipient without any issues.

What is Customs?

Customs in international shipping terms refers to the government authority or agency that is in charge of the export and/or import of goods from one country to another. Customs regulations cannot be avoided and all parties involved in the trade have to comply. Two main purposes of customs involves in international shipping:

1. To prevent any items that are classed as illegal or prohibited from exiting or entering the country.

2. Determining if goods being exported from or imported into the country are liable for taxes and duties, and if so deciding what amount of charges are to be applied.

Each country has different export/import regulations and customs tariffs - and it's your responsibility as the shipper/seller together with the receiver/importer/buyer to comply with those. If you want to check that your goods are ok to send, you can either visit the customs official website or contact them directly, or you may get in touch with our customer support team - who will be happy to advise you.

Note: Import duties, taxes, VAT, and any other fees levied by Customs are not part of the shipping costs charged by UrShipper.

Why the import duties and taxes matter in international shipping?

When you ship internationally, your customer as the importer may be asked to pay import duties and taxes on receiving their shipment.

Customs collect import duty/tax from shipments that come from other countries because they want to:

1. Protect domestic companies from foreign competitors

2. Control the flow of certain products

3. Raise revenue through duties and taxes

Duties and taxes if applied to international shipments are legal requirements that must be settled before your shipment can be released and delivered.

The customs clearance processes

 Here's a quick summary of what happens when you ship packages internationally:

1. As part of your booking process, we will ask you to declare what you are shipping in detail.

2. UrShipper will then generate customs paperwork (known as Commercial Invoice) and then transmit it electronically to the appropriate customs department - so the customs clearance process begins even before the shipment arrives at the destination country - allowing for swift processes.

3. When your shipment arrives at the destination country, customs will do screening or physical checking (if needed) - making sure your declaration matches the actual goods shipped. Then customs will determine the amount of import duty/tax that should be applied to your shipment (if any). These charges will as default, be billed to the receiver.

4. The receiver will be contacted and asked to pay any charges. They might also be provided with a copy of your customs declaration or a breakdown of the charges as a reference.

5. Once any charges have been paid, your shipment will be released by customs, and can continue to delivery.

Do import duties and taxes apply to all international shipments?

Not all shipments are subject to import duties and taxes. Collections of import duties and taxes on an international shipment depend on the country's "De Minimis Value" and the customs regulations of the destination country.

Tips to avoid customs, duties, and taxes issues

If your shipment is dutiable and/or taxable, the only way to have the parcel released from customs and continue to delivery is to pay those customs charges. If your customer refuses to pay the import duties and taxes, the shipment will be typically returned to you at your own cost -which includes the return shipping cost and the duty or tax of its reimportation back into the Indonesian customs territory. Please note that UrShipper and/or our carrier partner have no control over any charges applied to your shipment by customs.

So when you ship internationally, it's best to be self-aware and to educate your customers about things like duties and taxes on your shipping policy - so they know what to expect. Along with that, properly writing clear goods descriptions for customs and properly declaring the value of your goods will be best practices to avoid customs issues upfront.