International Shipping & Duties Calculator
Calculate the total landed cost of international shipments including customs duty, VAT, and shipping.
Results
Visualization
How It Works
The International Shipping & Duties Calculator estimates the true landed cost of importing goods across borders. Customs authorities assess duties on the CIF value (Cost + Insurance + Freight), and VAT or GST is then applied on top of that duty amount. Knowing landed cost upfront is essential for setting profitable prices on international sales.
The Formula
Variables
- CIF — Cost, Insurance, Freight — the total of product value + insurance + shipping; this is the customs valuation basis
- Duty — Customs Duty — percentage applied to CIF value; varies by product type (HS code) and country
- VAT/GST — Value Added Tax or Goods and Services Tax — applied to CIF + duty in most countries; EU standard rate is 20%, Australia GST is 10%
- LC — Landed Cost — the total all-in cost to get the product to its destination including all taxes and fees
Worked Example
A $150 product shipped internationally for $25 has CIF value of $176.75 (including ~$0.75 insurance). With a 12% duty rate, customs duty is $21.21. VAT at 20% is applied to $197.96 (CIF + duty) = $39.59. Total landed cost: $150 + $25 + $0.75 + $21.21 + $39.59 = $236.55, which is 57.7% above the base product value.
Practical Tips
- Look up your product's specific duty rate using its HTS (Harmonized Tariff Schedule) code at the destination country's customs authority website — rates vary widely by product category.
- Many countries have a 'de minimis' threshold below which no duty is collected. The US threshold is $800, while many EU countries have lowered theirs to near zero for commercial imports.
- Use Delivered Duty Paid (DDP) shipping terms to pay duties upfront and provide customers a seamless experience — unexpected customs bills at delivery cause high refusal rates.
- Free Trade Agreements (like US-Canada USMCA) can reduce or eliminate duties for qualifying products — check if your product qualifies.
- VAT-registered businesses in the EU can typically reclaim import VAT as an input credit — work with a tax advisor if selling significant volumes into the EU.
Frequently Asked Questions
What is CIF value and why does it matter?
CIF stands for Cost, Insurance, and Freight — it's the total value of your goods plus insurance plus shipping costs. Most countries calculate customs duties based on CIF value, not just the product price. This means higher shipping costs also increase your duty bill, which is why some importers try to separate freight invoicing.
How do I find the right duty rate for my product?
Every product has a Harmonized Tariff Schedule (HTS or HS) code that determines its duty rate. Use the US International Trade Commission's tariff database (usitc.gov) for US import rates, or the destination country's customs authority website. Rates vary from 0% to 25%+ depending on product category and country of origin.
What is the US de minimis threshold?
The US de minimis threshold is $800 — shipments valued under $800 enter the US duty-free and without formal customs entry. This threshold is among the highest in the world, which is why cross-border ecommerce from platforms like SHEIN and Temu has grown so rapidly. Note: this threshold may change in future legislation.
Do I need to collect VAT when selling to EU customers?
Yes — if you sell to EU consumers and your sales exceed the €10,000 cross-border threshold, you must collect and remit VAT at the destination country's rate. The EU's One-Stop Shop (OSS) system simplifies this by letting you file a single VAT return for all EU sales. Consider using a tax compliance service like Avalara or TaxJar.
What is Delivered Duty Paid (DDP) shipping?
DDP means the seller pays all costs including import duties and taxes before delivering to the customer. This provides the best customer experience (no surprise bills at delivery) but requires the seller to handle customs documentation and advance payment of duties. The alternative, Delivered at Place (DAP/DDU), transfers duty responsibility to the buyer, often resulting in refused packages.