How AliExpress import duty actually works

Why your $10 order suddenly costs $25

AliExpress is a Chinese marketplace. When a Chinese seller ships you something, it crosses an international border — yours. Every country charges fees on goods crossing its border, and those fees fall into three categories you need to know:

• Import duty — a tax on the value of the goods.
• VAT / GST / sales tax — a consumption tax applied on top of the duty.
• Brokerage / handling fee — paperwork charge by your courier.

A $10 phone case from AliExpress might land in your hands costing $10, $14, $19, or $34 depending on which of those three apply. Below, we’ll unpack each one.

1. Import duty

Import duty is a percentage of the “customs value” — typically the cost of the goods plus international shipping. The rate depends on two things:

• Your country’s general tariff schedule (each country sets its own).
• The HS code (Harmonized System code) of the product. A T-shirt has a different rate than a laptop battery.

For AliExpress retail orders, most goods fall under broad categories with relatively standard rates. We track these rates by country and refresh them daily. The current rates are visible on our live rates page.

2. VAT, GST, and sales tax

VAT (Value-Added Tax) and GST (Goods and Services Tax) are essentially the same thing under different names. Most developed countries charge it on imports — including AliExpress orders. The rate is applied to the post-duty value, which means VAT compounds on top of duty.

The math: VAT amount = (item + shipping + duty) × VAT rate. For example, a $50 product shipped to the UK with 2.5% duty and 20% VAT looks like this:

• Product + shipping: $58
• Duty: $58 × 2.5% = $1.45
• VAT: ($58 + $1.45) × 20% = $11.89
• Total landed cost: $71.34

The $11.89 of VAT is by far the bigger chunk — and the part most shoppers underestimate.

3. De-minimis thresholds

A de-minimis is a value below which customs doesn’t bother collecting duty (and sometimes VAT). The thresholds vary wildly:

• United States — historically $800 (Section 321), under review at the time of writing.
• Australia — A$1,000 for duty (but GST applies from $0).
• Singapore — S$400.
• EU / UK — €0 / £0 (no exemption since 2021).
• Canada — C$20 for duty, C$40 for GST.
• India, Bangladesh, Brazil — effectively $0.

The takeaway: in the EU, UK, India, and Bangladesh, every parcel is liable. In the US and Australia, small parcels often clear duty-free — but new rules in 2026 are tightening this.

4. IOSS and platform VAT collection

Since 2021, AliExpress has been registered for the EU’s IOSS scheme (Import One-Stop Shop) and the UK’s analogous regime. What does this mean for you?

If a seller is enrolled, AliExpress collects VAT at checkout and prepays it to your country. The parcel then clears customs without a separate VAT charge. You will see “Tax included” on the product page when this applies. AliTariffs detects this and skips the VAT line on the result page.

The catch: not every seller is enrolled. If you don’t see the badge, expect to pay VAT separately at customs or on delivery.

5. Courier brokerage fees

The hidden tax nobody mentions. Express couriers (DHL, UPS, FedEx) charge a “customs clearance fee” on dutiable parcels, typically $5–$25 flat. Postal shipping (USPS, Royal Mail, Canada Post via your country’s national service) usually does not charge this — or charges a minimal $3–$5 handling fee.

AliExpress Standard Shipping uses postal-style services in most countries, so brokerage fees are rare. AliExpress Premium / DHL routes are where they bite.

6. The practical playbook

1. Run every AliExpress link through our calculator before you click Buy.
2. For EU/UK, prefer products with the “Tax included” badge.
3. For the US/Australia, keep individual parcels under the de-minimis if possible.
4. Avoid express shipping for low-value items — the brokerage fee dwarfs the savings.
5. Install the Chrome extension so you don’t forget step 1.