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Customs duty calculations at checkout

This article applies to:AvaTax

After you set up AvaTax Cross-Border and connect your business application to AvaTax, customs duties and other import taxes are automatically included at checkout.

Requirements for customs duty calculations

  • All products in the shopping cart must have a fully qualified harmonized tariff code assignment in AvaTax
    If any item in the order doesn't have a complete tariff code, cross-border calculations will be skipped for the entire order.
  • You (the seller) must be the importer of record in the destination country
    If the buyer is the importer of record, duties aren't included in the transaction total. Instead, fees are calculated after the order is submitted and stored in AvaTax.
  • The Ship From and Ship To destinations must be in different countries
    Make sure your shipping information is accurate.
  • If calculating preferential treaty rates, transaction data must include treaty parameters
    Transaction parameters are applied on the Item level as part of the CreateTransaction API model

Identify customs duty charges in your business application or system

Check your business application's documentation to see how customs duties are broken down at checkout or within individual orders. For example, a WooCommerce checkout experience may describe customs duty calculations as "Import Fees". 

Calculating preferential treaty rates at checkout

To calculate preferential duty rates, your transaction data must include trade agreement parameters. When the parameters are present, AvaTax applies the appropriate preferential duty rate instead of the Most Favored Nation (MFN) rate. See Add preferential treaty to customs duty calculations in AvaTax.

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