How to Charge a Customer a Tarrif

When sending parcels overseas, it may be necessary for a merchant to add a tariff charge to a customer's order, for the merchant to on-pay the appropriate jurisdiction. This is assuming that as the merchant, you will need to pre-pay the tariff to ensure a successful and seamless delivery of your customers' orders.

The tariff may be a percentage of the order value, or a fixed fee.

When setting up a tariff charge, use the eCommerce Freight Options area.

You should target the Country/region filter to the specific country, so that only this country pays the tariff. If you have other freight options that include this country (ie Continents or Rest of world), then you will also need to edit those freight options to exclude this country. By this approach, the country that pays the tariff won't have access to any generic freight options without the tariff charge.

Here are the steps on how to charge a customer a tariff:

In the CMS, select eCommerce - Freight Options
Add an International Freight Option - just a name at this stage is fine
Save, then continue to edit this new shipping option
In the Sales Tax / Tariff / Duty box, select which "local tax approach": International
Enter wording for the tariff, duty or sales tax
Enter the export tax or tariff rate percentage
And/or enter the export tax or tariff fee

The assumption for collecting the tax or tariff is that the merchant is required to collect and pay tax to the appropriate authority. It is the responsibility of the merchant to set and collect the accurate tax rate or tariff if this feature is used.