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International Shipping

Expanding your business to international markets can be an exciting yet challenging step. This guide will walk you through the essentials of international shipping in Racko, helping you navigate customs, choose carriers, and create international labels efficiently.

Understanding International Shipping​

The main difference between domestic and international shipping is the customs process:

Domestic: Warehouse → Destination International: Warehouse → Customs → Destination

Preparing for International Shipping​

Before you can ship internationally, you need to:

Customs​

Customs offices screen incoming products to ensure compliance with local laws and apply appropriate taxes. They rely on customs forms (also known as Commercial Invoices for private carriers) that declare the package contents, value, origin, and destination.

Preparing for International Shipping​

1. Harmonization Codes​

Harmonization codes (HS codes) are internationally recognized codes that classify products for tax purposes.

In Racko:

  1. Go to Inventory > Products
  2. Edit the product
  3. Add the HS code in the "International" section

FAQ:

  • Q: Are HS codes required? A: Most countries use HS codes, and as of March 2023, all EU countries require them. Always include both HS codes and accurate item descriptions.
  • Q: How to find the correct HS code? A: Use the Harmonized Tariff Schedule or GlobalPost HS Code lookup tool. For assistance, contact the US International Trade Commission.

2. Destination Countries​

Research your target countries:

  • Import regulations from your country
  • Product legality in the destination country
  • Applicable taxes and duties

FAQ:

  • Q: Where to find import limitations? A: Check International Trade Administration, US Embassy websites, or USPS.
  • Q: What taxes apply? A: Mainly Duties and Value Added Tax (VAT), varying by country.
  • Q: Who pays these fees? A: Either the merchant (Delivery Duty Paid - DDP) or the customer (Delivery Duty Unpaid - DDU). Clearly communicate this on your checkout page.

3. Carrier Selection​

Consider these factors when choosing a carrier:

  • Availability in the destination country
  • Ability to export your products
  • Delivery time
  • International shipping features (insurance, express delivery)
  • End-to-end handling vs. handoff after customs

Racko supports multiple carriers for international shipping. Check our Carrier Integrations guide for details.

Creating International Labels in Racko​

Racko streamlines international shipping:

  1. International orders automatically include customs declarations in the order details.
  2. Item details (description, weight, value) are pre-filled.
  3. Additional details like HS codes can be added manually or automatically if set in product records.

Customs Handling​

Carriers handle customs in two ways:

  1. Electronic Submission: Customs information is sent electronically when you create the label. No further action is needed.
  2. Printed Hard Copy: You must print customs forms and include them with the shipment. Racko allows you to print these forms after label creation.

Note: Some carriers, like USPS, print customs information directly on the label.

FAQ:

  • Q: Where to find blank customs forms? A: Check carrier websites (FedEx, UPS).
  • Q: What is a commercial invoice? A: It's a customs document used by private carriers, containing all necessary information for customs clearance.
  • Q: Are additional forms required? A: Depends on the content and destination. Dangerous, perishable, or high-value goods may require extra forms.

Best Practices​

  1. Start with a few target countries and expand gradually.
  2. Clearly communicate duties and taxes responsibility to customers.
  3. Regularly update your product HS codes and descriptions.
  4. Consider offering both DDP and DDU options to customers.
  5. Use Racko's automation features to streamline international order processing.

For more detailed information on specific aspects of international shipping or advanced features, please refer to the respective sections in this documentation.