Overview of Shopify's Duties and Import Taxes Update
Shopify now offers a new option for postal tariff rate calculations for orders shipping into the United States. This update allows merchants to apply specific tariff rates based on shipping methods used, making international checkouts even more accurate and tailored.
Key Changes to Duty Calculations
Previously, the tariff rates for parcels using commercial and postal carriers were identical. For most shipments into the United States, Shopify's duty calculator traditionally based its calculations on:
- Individual Harmonized System (HS) Code for each product.
- The Country of Origin related to your inventory.
This default method aligns with duty calculation schemes used by U.S. Customs for commercial carriers. However, Shopify has introduced a new setting to further refine duty calculations for merchants who frequently ship using postal carriers.
Introducing Postal Tariff Rate Support
Merchants can now enable postal tariff rate calculations to better align with shipments handled by carriers like Canada Post. This updated Ad Valorem calculation relies heavily on the Country Code of Origin for your products, ensuring duties are optimized for postal shipments. This feature applies to:
- All products included in orders shipped to the United States.
- International checkouts, regardless of shipping carrier availability.
How to Enable Postal Duty Rates
Turning on postal tariff rate calculations is simple. Here’s how:
- Log into your Shopify admin dashboard.
- Navigate to your “Duty Settings” section.
- Check the box labeled “Use postal duty rates into the United States.”
Once enabled, Shopify will automatically recalculate duties based on postal tariff rates for U.S. shipments. This adjustment ensures transparency and cost accuracy for merchants and customers.
Additional Resources
For further details on managing duties and import taxes in Shopify, visit our Help Center.