International shipping for small business: a first-time checklist

Your first international order is exciting, and a little scary. The parcel itself is the same; what changes is the paperwork, the taxes and the number of things that can delay it. This checklist walks through what to prepare so your parcel clears customs and your customer is not hit with an unexpected bill.

Note: Customs and tax rules differ by country and change regularly. This is general guidance, not legal or tax advice. Always check the official rules for the countries you ship to.

Before you start selling abroad

1. Check that your product is allowed

Every country, and every carrier, has a list of prohibited and restricted goods. Items that often cause trouble include:

• lithium batteries and devices that contain them;
• perfume, nail polish, aerosols and other flammable liquids;
• food, plants, seeds and animal products;
• cosmetics and supplements;
• branded goods that may need proof of authenticity.

Look up both the destination country’s rules and your carrier’s own list before you offer a product internationally.

2. Decide where you will ship

You do not have to ship everywhere on day one. Start with two or three countries where you already get interest, learn how they work, then expand.

3. Find the HS code for each product

Customs authorities classify goods with Harmonized System (HS) codes. The first six digits are used worldwide; countries may add more digits of their own. The code determines the duty rate, so pick it carefully. Your country’s customs website has a search tool, and many shipping tools suggest codes for you. Save the code with each product so you only do this once.

The paperwork for each parcel

4. Complete the customs declaration

Each international parcel needs a customs declaration. Postal services use standard forms (often called CN22 or CN23, depending on the value), while courier companies use a commercial invoice. They ask for the same core information:

Field	Tip
Description of contents	Be specific: “women’s cotton T-shirt”, not “clothing” or “gift”
Quantity and value	Use the real sale price; under-declaring is illegal
HS code	The code you saved for the product
Country of origin	Where the product was made, not where you ship from
Weight	Real weight of the parcel
Sender and recipient	Full addresses, plus a phone number or email for the recipient

Most shipping software fills these forms in automatically from your order data and sends them to the carrier electronically.

5. Never mark a sale as a “gift”

Customers sometimes ask for this to avoid import taxes. Declining is the right answer: a false declaration can lead to fines, seizure of the parcel and problems for your business.

Duties and taxes

6. Understand who pays: DDP or DAP

Import duties and taxes are usually due when the parcel enters the destination country. There are two ways to handle them:

• DAP (Delivered At Place), formerly often called DDU: the customer pays duties and taxes on delivery. It is simple for you, but customers who did not expect the bill may refuse the parcel.
• DDP (Delivered Duty Paid): you collect duties and taxes at checkout and pay them through the carrier. The customer gets no surprise, which usually means fewer refused parcels and better reviews.

Whichever you choose, say it clearly on your product and checkout pages.

7. Check the thresholds for your destinations

Many countries apply no duty or simplified rules to low-value parcels, but the thresholds are very different from one place to another and they change. A few examples of how rules have shifted:

• The European Union charges VAT on all commercial imports and offers a simplified scheme (IOSS) for sellers of goods up to €150.
• The United Kingdom expects sellers to charge VAT at checkout on consignments up to £135.
• The United States suspended its long-standing $800 duty-free threshold in 2025.

Treat these as reminders to check current official guidance, not as final answers.

Delivery and customer experience

8. Set honest delivery times

International parcels take longer and customs can add days. Publish realistic ranges for each region, and choose tracked services so both you and the customer can follow the parcel.

9. Pack for a longer journey

International parcels are handled more often. Use a sturdy box, protect corners and make sure the label and customs documents are firmly attached and readable.

10. Plan for returns

Decide in advance what happens if an international customer wants to return an item: who pays the return shipping, and whether a refund without return is cheaper for low-value products. Write it in your returns policy.

11. Consider insurance for valuable orders

Check what compensation is included with your service and add insurance for higher-value parcels. Our guide is shipping insurance worth it gives a simple rule for deciding.

The short version

• Product is allowed in the destination country and by the carrier
• HS code and country of origin saved for each product
• Customs declaration is specific, accurate and complete
• DDP or DAP chosen and explained at checkout
• Duty and tax thresholds checked for each destination
• Tracked service, realistic delivery time, sturdy packaging
• International returns policy written down

Once the routine is in place, international orders are not much harder than domestic ones. For more on keeping costs down, see our nine ways to reduce shipping costs.