This manual describes how to set up a Shopify store to use with the EAS DDP solution.
Prerequisites and limitations
| Requirement | Details |
|---|---|
| Existing EAS customer | You should be an EAS customer to use the EAS DDP solution. If you use IOSS, Union OSS, Non-Union OSS or UK VAT services provided by EAS, you already qualify as an EAS customer for the EAS DDP solution. |
| 3 EUR duty | Enabling Shopify duties for orders over the 150 EUR threshold also enables a 3 EUR duty for orders below 150 EUR. |
| Reduced VAT overrides | Enabling Shopify duties prevents the use of reduced VAT configured via overrides, and might not be applicable for stores selling books or food. An alternative configuration method should be used for such stores. |
| HS codes | A 10-digit HS code must be used for all products in your Shopify store. |
| Country of origin | The country of origin must be set for all products in your Shopify store. |
| Accuracy of your data | Incorrect HS codes and/or incorrect country of origin will lead to additional duty calculations. EAS is not able to correct your HS codes and country of origin data. Even if we review and configure your store settings, you will still be required to assign the correct HS codes and country of origin. |
| Preferential treatment | You may be requested to provide signed documents, such as invoices or certificates of origin, to claim preferential treatment for goods produced in the UK, Australia, Switzerland and other countries with valid EU free trade agreements. Normally a self-declaration is sufficient, but different rules may apply when confirming the origin of your goods. See gov.uk guidance on proof of origin. If a signed document is required, EAS will contact you. |
Setting HS codes, country of origin and customs description
Before proceeding with the setup process, you need to set up 10-digit HS codes and the country of origin for all products in your Shopify store.
Shopify offers two ways to do this: bulk product edit (recommended for most stores) and CSV import/export (recommended for large catalogues where manual editing is not practical).
Option 1: Bulk product edit
- In your Shopify admin, go to Products.
- Select the products you want to edit, or use the checkbox at the top to select all products.
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Click Edit products to open the bulk editor.
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Click Add fields and enable the "Harmonized system code" and "Country of origin" columns if they are not already visible.
- Enter the 10-digit HS code for each product variant in the HS code column.
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Enter the country of origin for each product variant in the Country/Region of origin column.
- Click Save when finished.
Option 2: CSV import/export
- In your Shopify admin, go to Settings → Taxes and duties.
- Scroll down to the Customs information section.
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Click the ⋯ (more options) button next to Customs information and select Export. The exported file will be sent to your email:
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Open the downloaded CSV file and fill in the "HS code" and "Country of origin (COO)" columns for each product variant.
Note that the country of origin should be entered in two-letter format.
- Save the CSV file.
- Return to the Customs information section, click the ⋯ button again and select Import.
- Upload your updated CSV file and click Upload file to apply the changes.
Inputting customs description
A customs description is needed for customs clearance on the EU side. The EAS application creates a special field for all your products where you need to enter a description of goods for customs.
The customs description should generally follow the description provided in the EU TARIC system. Use the EAS EU Customs Tariff and HS Code Tool to identify the HS codes of your products and the corresponding customs descriptions.
For a t-shirt, our tariff solution will render the following description:
An appropriate customs description in this case would be: "Cotton T-shirt for boys/girls".
Before you can input the customs description, check whether the customs field is enabled in the EAS application installed in your shop. Go to Apps, choose "EAS EU compliance" and then choose Settings. Check whether the meta field option is enabled:
After that, a new meta field will appear in your product attributes:
You can fill the new field manually or via CSV upload.
For CSV upload, follow this process:
- In your Shopify admin, go to Products.
- Click Export and choose to export all products as a CSV file.
- Open the CSV file and locate the "Customs description" column.
- Enter the customs description.
- Save the CSV file.
- In your Shopify admin, go to Products and click Import.
- Upload your updated CSV file, click Upload file, then Import products.
Standard and alternative Shopify duty setup
Setting duties using the native Shopify tax engine (standard setup)
In most cases you can use the standard Shopify tax engine. If you do not sell predominantly books or food items, you can use this setup.
Enabling taxes and duties
- In your Shopify admin, go to Settings → Taxes and duties.
- Scroll down to the Duties and import taxes section.
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Click Collect duties and import taxes at checkout and enable the toggle.
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Apply the duties to the market where you have your EU countries:
You will be asked to confirm Shopify fees after that.
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Enable reduced duties for EU and other free trade agreement goods:
- Click Save to apply the changes.
Validating setup results
Now go to the checkout and order goods over and below 150 EUR. The results should look like this:
IOSS orders (below 150 EUR):
DDP orders over 150 EUR (China goods with duties):
DDP orders over 150 EUR (UK goods without duties):
Alternative setup for EAS DDP
This alternative setup assumes that all your goods are produced in the UK, or that all your goods do not attract duties in the EU and are levied with reduced VAT (for example, books or food). It is also suitable for situations where your goods naturally do not attract duties even if they are produced in a country without a free trade agreement (for example, electronics or toys produced in China).
This setup presumes using the Union OSS scheme for EU sales. These settings do not levy duties on goods; only VAT applies.
Before starting this setup, you still need to set up HS codes, country of origin and customs description for all your goods.
Enable the Union OSS setup in the Taxes and duties section for the European Union:
- In your Shopify admin, go to Settings → Taxes and duties.
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Scroll down to the European Union section.
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Enable collection of Union OSS VAT.
Having enabled Union OSS collection in your store, you need to validate the results via the checkout for IOSS and DDP orders.
IOSS order:
DDP order:
Note that with this setup, the 3 EUR duty is not collected for IOSS orders. It needs to be collected via an inflated shipping cost or by adding it to the cost of the items.
If you have any questions about setting up your Shopify store for EAS DDP, please contact support@easproject.com.