Shopify Enhances Duties and Import Taxes with Preferential Trade Agreements
Shopify Duties and Import Taxes now provides support for preferential trade agreements, making cross-border transactions smoother and more affordable for merchants and their customers. This enhancement ensures that duties calculations take into account favorable terms under specific treaties.
How Preferential Trade Agreements Work
Preferential treaties reduce duty rates based on key factors including:
- Shipping origin and destination of the products
- Country of origin of the products
- Harmonized system codes associated with the products
Once a preferential treaty applies, buyers benefit from reduced duty rates, enhancing affordability and transparency during the checkout process.
Example: USMCA Agreement Benefits
The United States-Mexico-Canada (USMCA) free trade agreement is one such example where merchants can leverage reduced import fees. If products are manufactured and shipped within North America, customers can enjoy significantly lower duty rates, fostering cross-border trade opportunities.
Learn More
For additional details on Shopify Duties and Import Taxes and to learn how your business can take advantage of preferential trade agreements, visit our help center.