When shopping internationally on Drip or any other platform, understanding customs, import duties, and taxes is essential for ensuring a smooth purchasing experience. These terms represent the processes and fees associated with importing goods into a country and are critical to international trade compliance.

Customs is the government authority responsible for overseeing and regulating goods entering or leaving a country. Its primary purpose is to ensure that shipments comply with local laws, prevent illegal goods from entering the country, and collect revenue through applicable duties and taxes.

When your order arrives at the destination country, customs authorities review the package to assess whether it meets legal requirements. This process may involve inspecting the goods, verifying documentation, and determining if taxes or duties are due.

Import duties are taxes imposed by the customs authority on goods brought into a country. These duties are calculated based on specific factors, including:

Value of the Item: The declared purchase price or market value of the product.

Category of Goods: Items are classified under different categories, and each category may have its own duty rate. For instance, clothing, electronics, and jewelry are often taxed differently.

Country of Origin: The country where the item was manufactured. Certain trade agreements may reduce or exempt duties for goods originating from partner nations.

Import duties serve two purposes: to generate revenue for the government and to protect local industries by discouraging the import of certain goods.

In addition to import duties, countries may apply additional taxes on imported goods. These taxes can include:

Value-Added Tax (VAT): A tax on the value of goods, common in European and other global markets.

Goods and Services Tax (GST): A similar tax levied in countries like Canada and Australia.

Other Fees: Some countries impose customs handling fees or administrative charges for processing shipments.

Taxes are typically calculated based on the item’s total value, which may include the purchase price, shipping costs, and insurance.

As the buyer, you are responsible for paying any duties, taxes, or fees required by the customs authority in your country. These costs are separate from the product price and shipping fees paid at checkout. If these fees are not paid, the package may be held, returned, or even destroyed by customs.

Every country has unique rules and thresholds for when duties or taxes apply. For example, smaller purchases may be exempt in some countries, while larger or higher-value shipments may incur additional requirements, such as detailed documentation or electronic filings.

For more information on customs, import duties, and taxes, you can refer to resources such as U.S. Customs Policies.