How import charges work
The three kinds of money you can be asked for at the border, and which value each is worked out on.
Last reviewed 9 Nov 2026 · knowledge base v2026.11.12-r3 · Not legal, tax or customs advice.
Three different things
- Customs duty is a tax on the goods themselves. The rate depends on the product's tariff classification and, increasingly, on where it was made. Sources: taxation-customs.ec.europa.eu, everycrsreport.com
- Import VAT/GST/sales tax is charged on top in most countries (not the US). In the EU and UK it is worked out on the goods plus shipping plus duty. Sources: gov.uk, postnl.nl
- Handling or clearance fees are what the post or courier charges for paying customs for you. They are not taxes and are usually not refundable. Sources: royalmail.com, dhl.de, pe.usps.com
Who usually pays
- If the seller collected tax and duty at checkout (IOSS in the EU, UK seller VAT up to £135, Australian GST up to A$1,000, or 'delivered duty paid'), you should not be charged again at the door. Sources: taxation-customs.ec.europa.eu, gov.uk, ato.gov.au
- Otherwise the carrier pays customs and asks you to repay it, plus its fee, before delivery. Sources: ups.com, personal.help.royalmail.com
Rules follow the arrival date
- Customs applies the rules in force when goods arrive, not when you ordered. A parcel bought before a change but arriving after it pays the new rate. Sources: zonos.com