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How do I know if I have to pay customs on a package?

Published in Customs Duty 4 mins read

You will typically be notified directly by U.S. Customs and Border Protection (CBP) or, more commonly, by your shipping courier if customs duties or taxes are owed on your incoming package.

How You Are Notified About Customs Duty

When a package arrives in the United States and is determined to be subject to import duty, U.S. Customs will automatically inform either you or your chosen courier. They will then contact you directly. This notification will clearly state the exact amount you need to pay and the due date, so you generally won't need to calculate it yourself unless you believe a mistake has been made.

Who Notifies You?

  • Shipping Courier: For most international shipments, the shipping company (such as FedEx, UPS, DHL, or even your local postal service like USPS) will act as a customs broker and contact you. They handle the customs clearance process on your behalf and will then bill you for any duties, taxes, and their own processing or brokerage fees.
  • U.S. Customs and Border Protection (CBP): While less common for individual packages, CBP can directly send you a notification or a bill for duties owed, particularly if the package was sent via standard mail services or if there are specific issues.

What the Notification Will Include

When you receive a notification, it will typically provide:

  • An invoice: Detailing the customs duties, taxes (like the Merchandise Processing Fee or excise taxes), and any courier-specific brokerage or handling fees.
  • The total amount due: A clear sum you need to pay.
  • Payment instructions: How and where to make the payment (e.g., online, by mail, or to the delivery driver).
  • The payment deadline: When the amount must be paid to ensure timely delivery.

Factors That Trigger Customs Duties

Several factors determine whether a package is subject to customs duties and taxes upon entry into the U.S.:

1. Value of the Goods (De Minimis Threshold)

The U.S. has a "de minimis" threshold for imports. If the total retail value of the goods in a shipment is below this amount, it typically enters duty-free.

Category De Minimis Threshold Notes
Most Goods $800 USD For most individual shipments, excluding certain exceptions.
Alcohol & Tobacco No de minimis Always subject to duty and excise taxes regardless of value.

This means if you receive a gift or purchase an item valued under $800, it's highly likely no duty will be assessed.

2. Type of Goods

Certain types of goods are always subject to duties, specific taxes, or restrictions, regardless of their value. These include:

  • Alcoholic beverages
  • Tobacco products
  • Perishable goods
  • Items subject to quotas or specific regulations (e.g., some textiles, agricultural products)
  • Controlled substances or prohibited items

3. Country of Origin

The country from which the goods are imported can also impact duties due to various trade agreements or tariffs. For example, goods from countries with Free Trade Agreements (FTAs) with the U.S. might be eligible for reduced or zero duty rates.

4. Purpose of Import

Whether the package is a commercial shipment, a gift, or personal effects can sometimes influence the duty assessment, though the de minimis threshold generally applies to all non-commercial shipments.

Tips for Monitoring Your Package

While you will be notified if duty is owed, it's good practice to:

  • Track Your Package: Use the tracking number provided by the sender or courier to monitor its journey. Tracking updates often indicate if a package is held in customs or if duties are pending.
  • Check Carrier Notifications: Be attentive to emails, text messages, or physical mail from your shipping carrier, as this is the most common way you'll be informed about customs charges.

By understanding these notification methods and the factors that trigger customs duties, you can anticipate and manage any potential payments for your international packages.