
Our Policies
Customs & Duties Policy
Everything you need to know about customs clearance, duties, and tax responsibilities for international shipments.
Legal
Customs & Duties Policy
Effective Date: 3/21/2026
1. Introduction to International Shipping Fees
When shipping goods internationally with PrimeRoute, the cargo crosses sovereign borders and is subject to the customs regulations, duties, and taxes of the destination country. It is crucial for both the sender and the receiver to understand who is financially liable for these government-imposed charges, as they are separate from the transportation fees paid to PrimeRoute.
2. Responsibility for Duties and Taxes
By default, international shipments are transported under the DDU (Delivered Duty Unpaid) or DAP (Delivered at Place) Incoterms unless explicitly contracted otherwise.
- Recipient's Liability: Under DDU/DAP, the Receiver (Consignee) is solely responsible for paying any import duties, customs taxes, Value Added Tax (VAT), Goods and Services Tax (GST), or specific excise taxes applied by their local government before the goods can be released for final delivery.
- DDP (Delivered Duty Paid): If a shipment is booked as DDP, the Sender (Shipper) agrees to pay all applicable import duties and taxes on behalf of the receiver. PrimeRoute will bill these exact charges back to the sender's account after clearance. DDP must be requested and approved prior to dispatch.
3. Documentation Requirements
Accurate documentation is the foundation of smooth customs clearance. The sender is legally responsible for providing true, accurate, and complete information regarding the shipment's contents.
Required documents typically include, but are not limited to:
- Commercial Invoice: Must detail the exact nature of the goods, quantities, individual values, total shipment value, and the currency used. Values must be realistic; customs authorities routinely flag and penalize shipments with artificially low declared values.
- Packing List: Detailing the weight, dimensions, and packaging type of the goods.
- HS Codes: Harmonized System tariff codes should be provided to ensure accurate tax classification.
- Certificates of Origin / Licenses: Required for restricted goods, agricultural products, or goods benefiting from free trade agreements.
4. Customs Holds and Delays
Customs authorities operate independently of PrimeRoute and have the legal right to stop, hold, X-ray, physically inspect, or confiscate any shipment entering or leaving their jurisdiction.
PrimeRoute is not liable for delivery delays caused by customs inspections, backlogs, or holds requested by government agencies. If a shipment is held due to missing paperwork or a request for additional information (such as proof of value or an import license), our brokerage team will attempt to contact the relevant party (sender or receiver) to obtain the documents. Failure to provide requested information in a timely manner may result in storage fees applied by the customs facility, which will be billed to the responsible party.
5. Abandoned or Refused Shipments
If the receiver refuses to pay the required import duties, or if a shipment cannot be cleared due to regulatory restrictions and is subsequently abandoned or marked "Return to Sender" by customs:
- The Sender becomes liable for all outstanding duties, taxes, storage fees, and the return shipping costs.
- If the sender refuses to cover these costs, customs authorities may destroy or auction the cargo, and PrimeRoute reserves the right to pursue the sender for any unpaid transportation or administrative fees incurred during the process.