Seasoned e-commerce shippers are typically familiar with USPS restrictions for domestic items, but many are unaware of the additional restrictions for international items. Every country has restrictions as to what goods are allowed into their borders. Often times these restrictions are based on cultural or religious beliefs for the local community.  Other times, the restrictions are enacted to protect local industry. In this article, we will look at USPS international shipping restrictions on common goods, as well as some odd prohibitions you might not have thought of.

Common Prohibited International Items  

• Aerosols
• Air Bags
• Alcoholic Beverages
• Ammunition
• Cigarettes and Smokeless Tobacco*
• Dry Ice (even for refrigeration)
• Flammable Paint
• Fresh Fruits and Vegetables
• Gasoline
• Nail Polish
• Perfumes containing alcohol
• Poison

*Cigars may be shipped internationally unless prohibited by the destination country

Shipping Internationally with Stamps.com

Stamps.com makes international shipping easy. In addition to automated customs forms and discounts to all international mail classes, Stamps.com simplifies shipping restrictions with real-time restrictions on the “International” tab for all countries the USPS delivers to.

If you ship merchandise to international addresses and your product is thin (between 1/4″ and 3/4″ thick), then you should be taking advantage of Stamps.com’s Global Advantage Program!   The program utilizes the USPS delivery network and allows online retailers to ship merchandise to an international address using a Large Envelope (Flat) mailpiece.

How Does it Work?

With the Global Advantage Program, mailpieces will travel to a Postal Processing Facility in the U.S. first where Customs Forms will be applied along with a new label containing the international destination address. Then mailpieces are consolidated by country and sent on to their international destination.

Benefits of Global Advantage Program:

• Ship merchandise in the cost efficient Large Envelope (Flat) mailpiece to international destinations
• Incredible cost savings – save up to 49% compared to First Class Package International Service
• Customs Forms will be sent electronically – no more forms to print
• Get better visibility with more tracking events

Save Up to 49% Compared to First Class Package International Service

This new International Large Envelope (Flat) service can provide huge cost savings compared to First Class Package International Service.  Savings can be over $8.00 per Large Envelope (Flat), depending on weight and country destination!

Stamps.com customers can access the service by selecting “First-Class Mail International Large Envelope/Flats” as the mail service inside the platform on a global delivery address.

Selling internationally doesn’t come without its challenges. Like any other country, Canada has duties, taxes and tariffs you will need to be aware of. If you haven’t gone through the process to become a Non-Resident Importer your Canadian buyer is responsible for duties, taxes, and tariffs that are imposed on imported goods.  It is important you communicate these additional fees to your customers at checkout so as to avoid unpleasant surprises at the time of package delivery.

Duties and Taxes

There are 3 kinds of duties and taxes for items being imported into Canada:

1. Goods and Services Tax (GST): This is a 5% federal tax that applies to items being sold to Canadian customers for domestic consumption.
2. Harmonized Tax (HST): A handful of Canadian provinces have opted to harmonize their provincial sales tax with the general sales tax and the total rate is known as Harmonized Tax.
3. Provincial Sales Tax (PST): Provinces that do not participate in the HST collection process impose their own taxes at the local level. The tax rate varies by province and can range from 5% to 9.75%.

Tariffs

Along with duties and taxes, your Canadian customer may also need to pay tariffs. Tariffs depend on the country of manufacture, not the country from where the product is purchased.  NAFTA eliminates tariffs on all goods that are manufactured in the U.S. and shipped to Canada.  However, if your product includes components that were manufactured outside the U.S., then your Canadian customer will need to pay tariffs on those components.

Shipping to Canada

Over one-third of Canadian e-commerce sales are currently coming from U.S.-based websites. That’s nearly $50 billion dollars flowing in from north of the border. With annual growth predicted at over 12% for the next three years, now is the time to open your business to eager Canadian buyers. If you are looking to sell in Canada be sure to check out the Stamps.com Guide: How to Ship to Canada.

Canada, our familiar neighbors to the north. When looking to grow globally, Canada is easily the first place to look for e-commerce merchants in the U.S. It’s only natural. We’re close to our Canadian neighbors in proximity, language and culture. Yet, exporting goods to Canada isn’t as easy as it may look.

U.S.-based retailers face a number of obstacles to selling in Canada. American retailers can’t collect Canadian sales tax at the time of purchase, only at the time of delivery. It can be a complicated process for Canadian buyers too. When Canadian customers buy from the U.S., they may be forced to go to their local customs office to pick up their purchase.

The result? A poor experience for the customer who may have to pay additional taxes or even visit a customs office just to pick up their online purchase. Luckily, there’s a way for U.S. online retailers to get around these issues in Canada: Become a non-resident importer.

What is a Non-Resident Importer?

A “non-resident importer” (or NRI) is defined as a business registered outside of Canada that assumes responsibility for customs clearance and other import-related requirements for bringing goods into Canada. Americans can register to become an NRI through the Canada Border Services Agency (CBSA).

As a non-resident importer, you can pay Canadian duties and taxes before delivery. Saving customers the hassle of paying taxes after you deliver to them makes you more competitive in the Canadian market.

Competitive Advantages of Becoming a Non-Resident Importer

Once you become a non-resident importer, the process of buying becomes much more simple for your Canadian customers. The advantages of becoming an NRI for you and your customers are clear:

• There’s no need for your Canadian customers to go all the way to a customs house to pick up a purchase, you can ship directly to their door
• Tracking shipments to Canada from the U.S. becomes an entirely visible process, a package goes from the USPS to Canada Post
• Your Canadian customers aren’t hit with additional taxes upon delivery
• Because you can pay taxes to the Canadian government, you can give your customers clear product prices that include Canadian taxes

Responsibilities of Non-Resident Importers

When you become a non-resident importer, you must fulfill certain responsibilities. You also open yourself up to regulations and fines for not complying with those regulations. Plus, you’ll be dealing with more than one level of taxation. The Goods and Services Tax (GST) is charged throughout Canada, while Harmonized Sales Tax (HST) is charged in Quebec, Nova Scotia, Prince Edward Island, Newfoundland/Labrador, New Brunswick, and Ontario.

Here are some of the issues you’ll need to navigate as a non-resident importer:

• Canadian regulations require you to meet additional rules, such as having a Business Number and an Importer Number (or RM)
• You’ll be responsible for collecting and paying both the Goods and Services Tax and Harmonized Sales Tax
• File GST/HST sales tax returns on time, or be charged penalties
• Provide customs documentation and pay customs duties to the correct Canadian government authorities
• Make sure labeling and marketing follows Canadian laws
• Once you get an income tax number, you’ll be subject to investigations of your books and records by Canadian tax authorities

Ready to Become a Non-Resident Importer?

Clearly, there are hurdles to becoming a non-resident importer. But the rewards are huge. You can be competitive with other Canada companies – without having a physical office, warehouse or retail location in Canada. Ready to get started? Learn more about the ins and outs of becoming a non-resident importer.

International e-commerce sellers that ship products to Australia should be aware of a new tax starting July 1, 2018. The Australia Goods and Services Tax (GST) is a 10% fee that the Australian government adds to all goods and services being imported into Australia. The GST is meant to help protect Australian businesses from cheaper overseas manufacturers, with the hope the tax will level out the retail product pricing.

Australia’s Goods and Services Tax – What is Changing?
Prior to July 1, 2018, consumers in Australia could purchase products from international sellers and have them imported duty and tax-free as long as the product value was less than A$1,000. (GST was already being applied to goods and services over A$1,000.) This created a perfect buying market for U.S. online retailers since most e-commerce orders were low-value items such as sporting equipment, clothing, jewelry, cosmetics and electronics.

Starting on July 1, 2018, Australia will now apply the 10% GST to all imports, including products valued under A$1,000.

International E-Commerce Sellers – Registering for GST
Retailers with OVER A$75,000 annually in revenue
In order to comply with the recent changes made to the GST, international e-commerce merchants who have over A$75,000 annually in sales (sales directly to Australia) will be required to register with the Australian Taxation Office. Once registered, online retailers will need to charge and collect the GST tax when selling goods to Australian buyers. Note: This GST tax collection by the online retailer will be indicated on the customs documents.

Retailers with UNDER A$75,000 annually in revenue
If your sales are under A$75,000 you are not required to register with the Australian Taxation Office. When you sell a product to an Australian buyer, the GST tax will be applied at the border when the product is imported.

Be Ready for the New GST Law Changes!
If you are an international e-commerce merchant selling to Australia with sales over A$75,000, you MUST comply with the new regulations.

There are severe penalties for not complying with the GST law, including:

• Imposing an additional 75% administrative penalty (legally payable)
• Intercepting funds from Australian buyers that are destined to seller account(s)
• Registering the debt in a court in the U.S.
• Requesting the Internal Revenue Service to recover the debt on behalf of Australia

Register your company as a GST business with the Australian Taxation Authority.

Stamps.com has you covered when it comes to shipping your goods overseas!  The shipping platform fully supports the new GST requirements. If you’re shipping items to Australia for your business, you will not need to add additional information to the labels on your packages to be in compliance with the new law.