Customs Values and Kits

A customs value is the total value of all items in your shipment and determines how much import duty the package recipient must pay.

NOTE: Please make sure to create an automation rule to add the discount for customs value.

Where does ShipHero get the customs value?

ShipHero will check 4 different places for customs values. If the first value is 0, we will check the following value for a number greater than 0.

In order of precedence, we first check the line item customs value found on the order detail page. If this has a value, we will use this value. If not, we will then check the product customs value found on the product detail page. If there is a customs value on the product page, we will use that. Otherwise, we will check the line item price; if that is 0, we will check the product price.

Order Line Item Customs Value > Product Customs Value > Line Item Price > Product Price.

1. Order Line Item Customs Value

2. Product Customs Value

3. Line Item Price

4. Product Price

What happens if an SKU does not have any customs values or prices?

If all four options are $0, including the line item price, we send the customs value as $0.01. ShipHero cannot send a value of 0, so if all fields are 0, we will default the value to 0.01.

What about customs values for kits?

A KIT SKU comprises multiple SKUs, each with individual customs value. Therefore, if it's a kit, ShipHero will sum the customs value of the components.

Let us look at an example,

You have a kit SKU of 3 components: 1 hat, 1 shirt, and 1 bag.

The customs value of the hat is $5

The customs value of the shirt is $8

The customs value of the bag is $10

Therefore, the kit's custom value will be $23.

What if the price of the kit is less than the combined total of the component's customs values?

This generally happens when a kit has a discount, and the price the customer pays is less than the sum of the components.

Let us look at an example:

You have a kit SKU of 3 components: 1 hat, 1 shirt, and 1 bag.

The customs value of the hat is $5

The customs value of the shirt is $15

The customs value of the bag is $20

Therefore, the kit's custom value will be $40. However, your customer paid only $30 for this kit.

ShipHero will consider the discount and recalculate the component's values in this case.

$30 (cost of kit) / $40 (combined total of customs values) = 0.75

Hat customs: $5 x 0.75 = $3.75

Shirt customs: $15 x 0.75 = $11.25

Bag customs: $20 x 0.75 = $15

Now the kit's custom value will be $30, which matches what your customer paid for the kit.