Selling luxury goods across borders opens up huge demand, but it also brings duties, import taxes, customs paperwork and carrier rules. Get them wrong and a high-value order can be delayed, refused or become unprofitable. Here is how cross-border luxury shipping works.
The main costs
- Customs duties: charged on imports, based on product type, value and country of origin.
- Import taxes: such as VAT in the EU and UK or GST in other markets.
- Brokerage and clearance fees charged by carriers.
- Shipping and insurance, which matter more on high-value items.
Who pays: DDP vs DAP
- DDP (delivered duty paid): the seller pays duties and taxes upfront. The customer pays nothing on delivery. This is the standard for luxury, because surprise charges at the door cause refusals and returns.
- DAP (delivered at place): the customer pays duties on delivery. Cheaper for the seller, but a poor experience for premium buyers.
Paperwork that matters
- Accurate commercial invoice with a clear product description and value.
- Correct product classification code.
- Country of origin for every item.
- Any certificates required for specific materials.
Common mistakes
- Vague descriptions that trigger customs holds.
- Undervaluing goods, which creates legal risk.
- Shipping restricted materials without the right documents.
How a Merchant of Record simplifies it
When a distribution platform acts as Merchant of Record, it takes responsibility for payment, tax and duties on each sale. With Stork, suppliers ship each order direct to the customer with a prepaid label, and Stork handles duties, tax and compliance across 10+ markets.
FAQ
Do I need tax registrations in every country I sell to?
Not for sales where Stork is the Merchant of Record.
Who handles customs paperwork?
Shipping documents are generated with the prepaid label, and Stork coordinates duties and tax on the transaction.
Apply to Stork to sell across borders without the overhead.
