10 Oct 2026 · Giraffe

Selling overseas from Singapore: duties and taxes

Information checked as of 10 October 2026

Once your Singapore store ships beyond Malaysia and Indonesia, a new question appears: who pays the customer's import duty and tax, and who deals with the customs paperwork? The answer differs by country, and several big markets changed their rules in 2025 and 2026. This guide covers how Shopify handles duties and import taxes at checkout, the terms DDP and DAP, HS codes, what the United States, Australia, the United Kingdom, the European Union and Hong Kong currently require, the Singapore export side, carriers and returns.

This is general information, not legal or tax advice. Customs and tax rules change often, and some of the changes below start on dates still ahead of us. Check the official pages linked in the references, and ask a customs broker or tax adviser before you commit to a market. We only cover destinations where we could confirm the key rules on at least two official sources. Japan, China and others aren't covered yet.

The short version

Shopify Managed Markets, the merchant-of-record service, isn't for Singapore stores. You use standard Shopify Markets and set up duties and taxes yourself.
DDP means you pay import charges; DAP means your customer does. The older term DDU has been replaced by DAP. Shopify's duty collection at checkout is built around DDP.
Add HS codes and a country of origin to every product. Duties are calculated from them, and carriers need them for customs forms.
The US no longer has a low-value duty exemption. The EU ended its €150 duty exemption on 1 July 2026. The UK's £135 duty relief is still in place for now, but its removal is legislated for a date not yet set.
Australia and the UK expect you to charge their sales tax at checkout on low-value consumer parcels, which can mean registering there. Hong Kong charges duty only on four categories of goods.
From Singapore, parcel post and most air shipments of S$1,000 or less need no export permit, unless the goods are dutiable or controlled. Exports can be zero-rated for GST if you keep the right documents within 60 days.

Who pays what: duties, import taxes and fees

When a parcel crosses a border, the destination can charge three kinds of money. Customs duty depends on what the product is, where it was made and what it's worth. Import taxes, such as VAT or GST, are charged on top. And the carrier may add a brokerage or disbursement fee for clearing the parcel. Shopify's help pages say the carrier acts as the customs broker and collects duties and import taxes from either the seller or the customer, depending on the shipping terms you use.

DDP and DAP

DDP (Delivered Duty Paid): you, the seller, take responsibility for import costs. You can collect an estimate of them at checkout, so the customer sees one total price and nothing is due at the door.
DAP (Delivered at Place): you only pay to get the goods there. The customer pays any duties, import taxes and carrier fees to the carrier on delivery, which can be an unpleasant surprise for them.

You may still see DDU (Delivered Duty Unpaid) in older guides, and in a few Shopify help pages. The ICC replaced DDU with DAP when it published Incoterms 2010, so DAP is the term to use now. In Shopify you choose DDP or DAP for each country, not both for the same country.

Shopify's duties and import taxes at checkout

In your admin, Settings > Taxes and duties lets you turn on collection of duties and import taxes for chosen countries, and Markets lets you switch it on or off per market. Shopify's help pages list what matters before you do:

HS codes drive the calculation. Duties come from each product's HS code and country of origin. If the HS code is missing, Shopify falls back to the product description and category, which is less accurate.
The amounts are estimates. A wrong HS code or missing origin can lead to extra duties charged on delivery. Carrier brokerage and disbursement fees aren't included.
If you collect at checkout, ship DDP. Otherwise the customer may be charged twice. Not every carrier supports DDP, and some only for certain destinations.
It charges duties and taxes together. You can't collect only the taxes. If you only want to collect UK or EU VAT, Shopify says not to turn the feature on.
You can't use it for the "Rest of world" shipping zone, so give each destination its own zone. Shopify also lists a few places it doesn't support, including Northern Ireland and Russia.
Shopify charges a transaction fee on orders where it calculates duties, even test orders. The rate has changed before, so check Shopify's page rather than a blog post.
Check the setting is available on your store. Shopify's Singapore page says merchants outside the Managed Markets regions can set up duties and import taxes themselves in Markets, but confirm it appears under Settings > Taxes and duties before you plan around it.

If you don't collect at checkout, the customer pays on delivery under DAP, and you should price in the risk that they refuse the parcel or return it. Shopify's tariff page also reminds merchants that product prices don't automatically include tariffs.

Why Managed Markets doesn't help here

Managed Markets, run with Global-e as merchant of record, handles foreign tax registration and duties for you. Shopify says it's only for businesses based in the continental United States and certain stores in Canada and the United Kingdom, so a Singapore store can't use it today. Our guide to selling to Malaysia and Indonesia with Shopify Markets covers how Markets works for a Singapore merchant, including currencies, translations and market setup.

HS codes and customs declarations

The Harmonized System (HS) is the international way of classifying goods. Shopify asks for the six-digit code in each product's customs information, together with the country of origin. Destinations then ask for more: US Customs and Border Protection (CBP), for instance, lists the 10-digit US tariff code among the data required for mail shipments.

Every carrier wants an accurate declaration as well. SingPost says declarations are mandatory and that parcels without a proper one can be delayed or returned without a refund. Ninja Van says common documents include a commercial invoice, a packing list and export declaration forms, depending on the destination. Describe the goods plainly, use the real price paid (after discounts), and don't put a zero value on free samples. Shopify recommends a non-zero value for them.

Destination by destination

These are the rules for low-value consumer parcels as of 10 October 2026. Check each destination again before launch, because most of them have a change scheduled or recently made.

United States

The US$800 de minimis exemption is suspended for all countries and all shipping methods. CBP says the suspension is indefinite and covers parcels arriving by post and by other routes, and Shopify's help pages say de minimis hasn't applied to US shipments since 29 August 2025. Duties and import taxes apply whatever the order value.
Postal shipments use a new informal entry process that took effect on 24 July 2026 for goods valued at US$2,500 or less. Entry can only be made by the owner or purchaser of the goods, or a licensed customs broker, and it needs a customs bond and data such as the 10-digit tariff code and country of origin. CBP says shipments without the required data or bond aren't released.
From 22 October 2026, goods claiming free trade agreement treatment, goods under certain special chapters of the tariff schedule, and goods subject to other US agency requirements can no longer use the postal informal entry process.
Tariff rates depend on the product and where it was made, not where you ship from, and they have changed several times. Shopify's help page describes recent US tariff developments, so we don't quote rates here. Use the US tariff schedule or a broker.

In practice, the entry rules make your carrier's customs capability important. Ask your carrier how it files US entries and whether it offers DDP before you promise US customers an all-in price.

Australia

Goods valued at A$1,000 or less: the Australian Border Force says most goods in this range have no duties, taxes or charges to pay at import, except alcohol and tobacco. Instead, the Australian Taxation Office (ATO) requires overseas sellers to charge 10% GST on low-value goods sold to consumers. The relevant value is the customs value, which is the sale price without freight and insurance.
You must register for Australian GST once your GST turnover from Australia-connected sales reaches A$75,000 in 12 months, counting projected turnover. You can register voluntarily below that. The ATO offers a simplified registration for non-resident businesses.
Sales to an Australian business with an ABN work differently: the business customer deals with GST, not you.
Consignments over A$1,000 are taxed at the border, and GST, duty and charges fall on the importer. If several low-value items ship together and the total passes A$1,000, the ATO lets you skip charging GST at the point of sale so the border collects it. If you did charge GST on items in an over-A$1,000 consignment, the customs declaration must say so, using the "PAID" exemption code, to avoid charging the customer twice.
Registered sellers must put their registration number on the customs documents for the parcel, so check that your carrier can include it.

United Kingdom

Consignments of £135 or less sold directly to customers in Great Britain: HMRC says the seller must charge and account for UK VAT at the point of sale, which requires registering for UK VAT. The £135 limit applies to the total consignment, not individual items. If the customer is a UK VAT-registered business and gives you their number, you don't charge VAT and the customer accounts for it.
Over £135, normal UK VAT and customs rules apply at import.
Customs duty on low-value goods: the £135 duty relief still applies today. HMRC published a policy paper and draft legislation on 13 July 2026 to remove it and introduce new arrangements for low-value imports, including a UK fiscal representative. The change takes effect on a day the Treasury sets, no later than October 2028, and the paper doesn't say what will be charged afterwards. Watch GOV.UK for the date.
Northern Ireland is treated differently: GOV.UK says VAT is charged on import there, and Shopify's duty collection doesn't support Northern Ireland.

European Union

The €150 duty exemption ended on 1 July 2026. The European Commission says a temporary flat customs duty of €3 now applies per item (counted by tariff classification, not quantity) in consignments of up to €150 sold to consumers. It runs until 1 July 2028, after which normal duty rates apply. Five T-shirts count as one item, but a T-shirt and a watch count as two. SingPost's overseas page says the same.
The seller or importer usually pays it as the person making the customs declaration. Only in rare cases does it fall to the consumer.
VAT is separate. The EU's Import One-Stop Shop (IOSS) lets you collect VAT at checkout on consignments of up to €150 and file one monthly return. A seller outside the EU must appoint an EU-based intermediary to use IOSS. When goods go through IOSS, no import VAT is charged on the €3 duty. Without IOSS, VAT is charged on import and the €3 duty is part of the amount VAT is calculated on.
Product identifiers become mandatory on 1 November 2026 (they can be provided voluntarily before then). The Commission also proposes a separate handling fee, but hasn't set an amount or date.

Hong Kong

Hong Kong Customs and Excise says it collects duty on four types of goods: liquor, tobacco (except smokeless tobacco and alternative smoking products), certain hydrocarbon oils and methyl alcohol. GovHK says only these four are subject to duties.
Importing those goods needs a Customs licence, and breaking the rule can bring a fine of up to HK$2 million and seven years in prison. Most ordinary Shopify products aren't in these categories, but check yours against the Customs list.
These pages cover duty only. Ask your carrier about any handling or clearance fees, and check each product against Hong Kong's import restrictions.

The Singapore side: permits, controlled goods and GST

Do you need an export permit?

Singapore Customs says some goods can be exported without a Customs permit unless they're dutiable or controlled. The exemptions include parcel post, documents, trade samples and gifts with a total value of S$400 or less, and goods exported by air with a total value of S$1,000 or less. Sea and road shipments, and higher-value air shipments, may need a permit. Carriers will still ask you to declare contents and value. Our Singapore shipping guide covers carrier options in more detail.

Controlled and strategic goods

Controlled goods need authorisation from the relevant government agency (a "competent authority") before export, whatever the value. Singapore Customs suggests checking by product description or HS code with its HS/CA Product Code Checker. Separately, strategic goods (arms, military equipment and dual-use items that could be adapted for weapons) need a permit under the Strategic Goods (Control) Act, and a "catch-all" rule covers unlisted goods that may be used for weapons of mass destruction. Singapore Customs says the updated Strategic Goods (Control) Order 2026 takes effect on 1 December 2026. For a typical consumer product, the HS/CA checker is the first thing to run.

GST on exports

If you're GST-registered, IRAS lets you charge GST at 0% on goods you're certain will be exported, provided you hold the required documents. For direct exports, such as goods you ship through your appointed postal or courier company and invoice to the overseas customer, you have 60 days from the time of supply to export and collect the documents. Miss it, and you must charge GST at the standard rate. If you aren't GST-registered, you don't charge GST at all. Our GST guide for Singapore Shopify stores covers registration, the S$1 million threshold and Shopify's tax settings. Keep the courier's proof of export and the commercial invoice for each order, and note the 60-day deadline in your process.

Choosing a carrier for international orders

SingPost: offers tracked Speedpost International for parcels up to 20kg, plus airmail and other mail services with lower weight limits. Declarations are mandatory. Delivery times and rules vary by country.
Ninja Van: offers international courier services to dozens of countries from Singapore, with its core network in Southeast Asia, and says its team prepares export clearance documents and handles customs clearance. Ask for a rate card and whether it can ship DDP to your destination.
DHL Express: has an official Shopify app for DHL Express account holders with paperless customs clearance. Shopify's own DDP labels from DHL Express are part of Shopify's carrier accounts, which aren't available to Singapore stores, so you'd arrange DDP through your own DHL account.

We haven't verified FedEx or UPS Shopify options from Singapore, so we leave them out rather than guess. Whichever carrier you choose, ask five questions: Do you offer DDP for my destinations? Who files the customs entry? What brokerage fees will you charge? Which items do you refuse? What happens to a parcel the customer won't accept? If your shipping rules start depending on destination, product type and cart contents all at once, Giraffe Shipping lets you set them up for Shopify checkout without writing code.

Returns from overseas customers

International returns are costly and can create tax paperwork, so decide your policy before launch. Common choices are a paid return label, a refund without return for low-value items, or store credit. Whichever you choose, put it on your returns page. A few official points to know:

Bringing goods back into Singapore: Singapore Customs says re-imported goods may incur GST and duty. Goods returned because they were damaged or rejected may come back without GST only if you used a Customs OUT (Direct) permit for the export, GST or duty had been paid and wasn't refunded or claimed, and the goods return in the same condition. Since parcel post doesn't need an export permit, you may not qualify, so ask Customs before you offer free returns on high-value goods.
UK: if you charged UK VAT and then refund the customer, you adjust your UK VAT return. If you never charged VAT, you don't need to amend it.
Duty already paid by the customer or by you: don't assume it's refunded automatically. Ask the carrier or the customs authority for the destination's process.

Our guide to returns, refunds and the Lemon Law covers your obligations to Singapore customers, which differ from those for overseas buyers.

Prohibited and restricted items

Rules apply at both ends. Singapore Customs lists controlled goods that need approval and one prohibited export (rhinoceros horn), plus sanctions lists. Your carrier will have its own list: SingPost publishes a general prohibition and dangerous goods page, and Ninja Van asks for a safety data sheet for potentially hazardous or liquid items. Perfume, aerosols, batteries, liquids, food, supplements, cosmetics and electronics are the categories most likely to hit restrictions at the destination. The EU, for example, says over 60% of products checked in 2025 inspections of cosmetics, protective equipment, supplements, toys and electronics failed its standards. Check each destination's import rules for your products before you list them for that market.

A launch checklist

Pick one or two destinations first and confirm the rules above on the official pages, because several have changed recently.
Add a six-digit HS code and country of origin to every product you'll ship abroad.
Run each product through Singapore Customs' HS/CA Product Code Checker.
Create a market and shipping zone for each destination, and set DDP or DAP for it.
If you choose DDP, confirm your carrier supports it, then turn on duty and import tax collection. Remember the feature collects duties and taxes together.
If a destination expects you to charge or register for sales tax (Australia GST, UK VAT, EU IOSS), sort that out before you take orders.
If you're GST-registered in Singapore, set up a way to keep export proof for each order and the 60-day deadline.
Write an international shipping and returns policy that says who pays import charges and what happens to refused parcels.
Place a test order for each destination and check the duties, taxes, shipping rate and customs form.

FAQ

Can a Singapore store use Shopify Managed Markets to handle foreign duties and taxes?

Not at the moment. Shopify says Managed Markets, the merchant-of-record service run with Global-e, is only for businesses based in the continental United States and certain stores in Canada and the United Kingdom. A Singapore store uses standard Shopify Markets and sets up duties and import taxes itself, or lets customers pay on delivery.

What is the difference between DDP and DAP, and what happened to DDU?

With DDP (Delivered Duty Paid) the seller pays import duties, taxes and fees, and can collect an estimate at checkout so the customer pays nothing on delivery. With DAP (Delivered at Place) the customer pays them to the carrier on delivery. DDU was replaced by DAP in the ICC's Incoterms 2010, so DAP is the current term, although a few Shopify help pages still use the old name.

Does the United States still have an 800 dollar duty-free exemption for small parcels?

No. US Customs and Border Protection says the de minimis exemption for goods valued at 800 US dollars or less is suspended indefinitely for all countries and all shipping methods, and Shopify says it hasn't applied to US shipments since 29 August 2025. Mail shipments of 2,500 US dollars or less now use a new postal informal entry process that started on 24 July 2026.

Do I need to register for tax in another country to sell there?

Often you do, or you need a scheme that collects the tax for you. Australia expects overseas sellers to charge 10 percent GST on goods worth 1,000 Australian dollars or less and to register once Australian sales reach 75,000 Australian dollars in 12 months. The UK expects VAT to be charged at the point of sale on consignments of 135 pounds or less, which requires UK VAT registration. The EU offers the optional Import One-Stop Shop, which a seller outside the EU can only use through an EU-based intermediary.

Do I need a Singapore export permit to ship parcels overseas?

Usually not. Singapore Customs says parcel post, and goods exported by air with a total value of 1,000 Singapore dollars or less, can be exported without a permit unless they are dutiable or controlled. Controlled goods and strategic goods need authorisation whatever the value, so check your products with Singapore Customs' HS/CA Product Code Checker. Higher-value air shipments and sea or road exports may need a permit.

A reminder: this guide is general information, not legal or tax advice. De minimis limits, duty rates and registration rules change, and some changes described here start on future dates. Check the official customs and tax pages for each destination, Singapore Customs and IRAS, or ask a customs broker, before you act. For the Singapore taxes that sit alongside this, see our guides to GST on a Singapore Shopify store and Shopify Payments payouts. For quick answers to other common setup questions, see Questions Singapore merchants ask about Shopify.

If you want to test international markets before you commit, a Shopify trial gives you time to create markets, add HS codes and run test checkouts for each destination.

Start a Shopify trial →

References

Rules, rates and features change, so check the live page before you act on anything here. All pages accessed 10 Oct 2026.

Duties and import taxes, Shopify Help Center. Accessed 10 Oct 2026.
Considerations for charging duties and import taxes at checkout, Shopify Help Center. Accessed 10 Oct 2026.
Collecting international duties and import taxes at checkout, Shopify Help Center. Accessed 10 Oct 2026.
Carriers and shipping terms for international orders, Shopify Help Center. Accessed 10 Oct 2026.
Buying DDP shipping labels, Shopify Help Center. Accessed 10 Oct 2026.
Understanding tariffs, Shopify Help Center. Accessed 10 Oct 2026.
Adding HS codes to your products, Shopify Help Center. Accessed 10 Oct 2026.
Requirements and considerations for using Managed Markets, Shopify Help Center. Accessed 10 Oct 2026.
Sell to international customers, Shopify Singapore. Accessed 10 Oct 2026.
The Incoterms rules 2010, International Chamber of Commerce (ICC). Accessed 10 Oct 2026.
E-Commerce Frequently Asked Questions, U.S. Customs and Border Protection (CBP). Accessed 10 Oct 2026.
Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process, Federal Register, 24 June 2026. Accessed 10 Oct 2026.
GST on low value imported goods, Australian Taxation Office (ATO). Accessed 10 Oct 2026.
How Australian GST works, ATO. Accessed 10 Oct 2026.
Non-resident businesses making online sales to Australia, ATO. Accessed 10 Oct 2026.
GST and Australian businesses: imported services, digital products and low value imported goods, ATO. Accessed 10 Oct 2026.
Import declarations, Australian Border Force (ABF). Accessed 10 Oct 2026.
Notice 2018/14: GST on low value goods, GST-paid exemption code, Department of Home Affairs, ABF. Accessed 10 Oct 2026.
VAT and overseas goods sold directly to customers in the UK, GOV.UK, HM Revenue & Customs. Accessed 10 Oct 2026.
Reforming the customs treatment of low value imports into the UK, GOV.UK, HMRC, 13 July 2026. Accessed 10 Oct 2026.
Reforming the customs treatment of low value imports: consultation response, GOV.UK, HMRC. Accessed 10 Oct 2026.
VAT and overseas goods sent to the UK and returned to the seller, GOV.UK, HMRC. Accessed 10 Oct 2026.
Guidance and legal text on temporary flat fee on low-value imports, European Commission, Taxation and Customs Union. Accessed 10 Oct 2026.
Customs guidance on the EUR 3 customs duty (version of 2 June 2026), European Commission. Accessed 10 Oct 2026.
VAT treatment of the EUR 3 customs duty on distance sales of imported goods (addendum), European Commission, VAT e-Commerce. Accessed 10 Oct 2026.
The One Stop Shop, European Commission, VAT e-Commerce. Accessed 10 Oct 2026.
EU VAT One Stop Shop (OSS), Your Europe. Accessed 10 Oct 2026.
Sending overseas, SingPost. Accessed 10 Oct 2026.
Dutiable Commodities, Hong Kong Customs and Excise Department. Accessed 10 Oct 2026.
Dutiable Commodities, GovHK. Accessed 10 Oct 2026.
Permit exemptions, Singapore Customs. Accessed 10 Oct 2026.
Controlled and prohibited goods for exports, Singapore Customs. Accessed 10 Oct 2026.
Strategic goods control overview, Singapore Customs. Accessed 10 Oct 2026.
Exporting of goods, Inland Revenue Authority of Singapore (IRAS). Accessed 10 Oct 2026.
Re-importing of goods sent overseas for activities, Singapore Customs. Accessed 10 Oct 2026.
Re-importing goods sent overseas for activities, Singapore Customs. Accessed 10 Oct 2026.
General prohibition and dangerous goods, SingPost. Accessed 10 Oct 2026.
International deliveries, Ninja Van Singapore. Accessed 10 Oct 2026.
DHL Express (Official), Shopify App Store. Accessed 10 Oct 2026.