Shipping your products internationally can significantly expand your customer base and boost sales. However, international shipping comes with unique requirements and considerations that differ from domestic shipments.
Understanding HS Codes
What are HS Codes?
Harmonized System (HS) codes are standardized numerical codes used worldwide to classify traded products. These codes:
- Consist of 6 to 10 digits
- Are used by customs authorities in over 200 countries
- Help determine applicable duties and taxes
- Are required for all international shipments
How to Find the Correct HS Code
- Product Classification: Identify the specific category your product falls under
- Search Tools: Use Skupreme's built-in HS code lookup tool or visit official customs websites
- Verification: Double-check codes as incorrect classification can lead to delays or penalties
- Multiple Products: Assign appropriate HS codes to each product type in your inventory
Commercial Invoice Requirements
A commercial invoice is a legal document between you and your international customers that:
- Serves as proof of sale and ownership
- Helps customs officials determine the true value of goods
- Identifies parties involved in the shipping transaction
Required Information on Commercial Invoices
- Complete seller and buyer information (name, address, contact details)
- Invoice number and date
- Detailed description of goods
- HS code for each product
- Country of origin
- Quantity, unit value, and total value of goods
- Currency used
- Terms of sale (Incoterms)
- Shipping method and carrier information
Skupreme automatically generates commercial invoices with this information based on your product catalog and order details.
Country-Specific Requirements
Import Restrictions
Different countries have varying restrictions on what can be imported. Some common regulated categories include:
- Food and agricultural products
- Cosmetics and personal care items
- Electronics
- Clothing and textiles
- Pharmaceuticals and medical devices
Documentation Variations
In addition to standard requirements, some countries may need:
- Certificates of origin
- Product certifications (CE, FDA, etc.)
- Special permits or licenses
- Fumigation certificates
- Quality inspection certificates
Specific Regional Considerations
European Union
- EORI number required for commercial shipments
- GDPR compliance for customer data
- VAT regulations and IOSS registration for orders under €150
Asia Pacific
- Japan requires detailed product specifications
- Australia has strict biosecurity measures
- China requires importers to be registered with customs
Americas
- Brazil has complex customs procedures and high import taxes
- Canada requires bilingual labeling (English/French)
- Mexico has sector-specific import permits
Understanding Duties and Taxes
Types of Import Charges
- Import Duties: Taxes imposed on imported goods
- Value-Added Tax (VAT)/Goods and Services Tax (GST): Consumption taxes
- Excise Duties: Extra taxes on specific goods like alcohol or tobacco
- Customs Processing Fees: Administrative charges
Calculation Methods
Duties and taxes are typically calculated based on:
- Product value (ad valorem)
- Weight or quantity (specific duties)
- Combination of both (compound duties)
De Minimis Thresholds
Many countries have minimum value thresholds below which duties and taxes aren't charged:
- US: $800
- EU: €150 (for VAT exemption)
- UK: £135
- Canada: CAD $20
- Australia: AUD $1,000
Recommended Billing Practices
Store-Level Duty and Tax Collection
We strongly recommend collecting duties and taxes at the checkout level for these reasons:
- Improved Customer Experience: No surprise charges upon delivery
- Higher Conversion Rates: Transparent total cost reduces cart abandonment
- Faster Delivery: Pre-paid duties minimize customs processing time
- Reduced Returns: Customers are less likely to refuse shipments with unexpected charges
How to Implement with Skupreme
- Enable Delivered Duty Paid (DDP) shipping in your Skupreme settings
- Configure the tax calculation engine to display accurate duty and tax estimates
- Add clear messaging on your checkout page explaining that all fees are included
- Consider absorbing some duty costs to maintain competitive pricing
Best Practices for International Shipping
- Accurate Product Information: Ensure detailed and accurate product descriptions, weights, and values
- Packaging Optimization: Use appropriate packaging to minimize dimensional weight
- Insurance Coverage: Purchase shipping insurance for high-value orders
- Tracking Solutions: Offer end-to-end tracking for international shipments
- Clear Return Policy: Establish and communicate your international return policy
- Customer Communication: Send proactive updates about customs clearance and potential delays
Troubleshooting Common Issues
Customs Delays
- Provide all required documentation upfront
- Respond quickly to customs inquiries
- Consider using a customs broker for complex markets
Lost Packages
- Implement a standardized claim process
- Maintain communication with affected customers
- Utilize Skupreme's package tracking integration
Returns and Refunds
- Create market-specific return policies
- Consider local return options for key markets
- Factor return shipping costs into your pricing strategy
Conclusion
International shipping offers tremendous growth opportunities when managed effectively. By understanding the complexities of customs, duties, and international requirements, you can provide a seamless shopping experience for your global customers. Skupreme's international shipping features help simplify this process, allowing you to expand your business globally with confidence.
For more specific questions or assistance with international shipping setup, contact Skupreme Support at support@skupreme.com.