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HL1Housing Living 101

How FedEx Duty and Tax Charges Work and When You Pay Them

By Tanika Patel
7 minute read

What FedEx duty and tax charges are

When a package arrives from outside the United States, FedEx may collect duties and taxes on your behalf before delivering it. These are not FedEx fees — they are charges owed to U.S. Customs and Border Protection (CBP) and your state. FedEx acts as a collector, holding the package until you pay, then forwarding the money to the government.

Duties apply to goods imported from other countries and are calculated based on the item's type, origin, and declared value. Taxes (usually sales tax or use tax) are owed to your state on the total value of the shipment, including the duty. The amount varies by what you ordered, where it came from, and your state's tax rate.

You will see these charges listed separately on a FedEx invoice or notice, often called a "duties and taxes" bill or a customs clearance notice. The package does not move until you settle the bill.

Key Takeaways

  • FedEx collects duties and taxes owed to the U.S. government and your state, not to FedEx itself, and holds your package until you pay.
  • You can pay by phone, online through FedEx.com, or in person at a FedEx location, depending on how FedEx notified you.
  • The sender sometimes pays duties and taxes upfront (called "duties prepaid"), in which case you will not see a bill.
  • If you refuse to pay or do not respond, FedEx will return the package to the sender after a set period, usually 30 days.
  • Duties and taxes are non-refundable once paid, even if you later return the item to the seller.

How to pay FedEx duties and taxes

FedEx notifies you of the charges through email, phone, or a door tag left at your address. The notification includes a tracking number, the amount due, and payment instructions. Check your spam folder if you do not see an email within a few days of the package arriving at a FedEx facility.

You have three main payment routes:

  1. Online at FedEx.com: Go to the FedEx tracking page, enter your tracking number, and look for a "Pay Now" or "Duties and Taxes" link. You can pay by credit card, debit card, or bank account. This is the fastest method and gives you an immediate receipt.
  2. By phone: Call the number on your FedEx notice or 1-800-463-3339. A representative will confirm the amount and process your payment over the phone using a card or bank account.
  3. At a FedEx location: Take your notice and tracking number to any FedEx Office or FedEx Ground location. Staff can process payment in person, though this requires a trip and may have longer wait times.

Once you pay, FedEx releases the package for delivery, usually within one business day. Keep your receipt or confirmation number in case you need to dispute the charge later.

When the sender pays duties and taxes instead

Some sellers, especially those shipping internationally regularly, prepay duties and taxes at the time of shipment. This is called "duties prepaid" or "DDP" (Delivered Duty Paid). When this happens, you will not receive a bill from FedEx, and the package will be delivered without a payment stop.

You can check whether duties are prepaid by looking at the original invoice or shipping confirmation from the seller. If it says "duties prepaid" or "DDP," you owe nothing to FedEx. If it says "duties collect" or "DDU" (Delivered Duty Unpaid), you will be billed.

Some sellers advertise free shipping but do not prepay duties, meaning you will pay them later. Read the fine print on the product page or ask the seller before ordering if you want to know upfront.

What happens if you do not pay

If you ignore the FedEx notice or refuse to pay, FedEx will hold the package for a set period — usually 30 days, though this can vary. After that time, FedEx returns the package to the sender at no cost to you. The sender may then reship it with duties prepaid, or issue a refund.

Refusing to pay does not damage your credit or result in legal action, because the debt is owed to the U.S. government, not to FedEx or the seller. However, you lose access to the item, and the seller may not reship without additional payment from you.

If the package is valuable or time-sensitive, paying the duties and taxes is usually faster and simpler than waiting for a return and reship.

Duties and taxes are not refundable

Once you pay duties and taxes to FedEx, that money goes to CBP and your state. It is not refundable, even if you return the item to the seller and receive a refund for the product itself.

If you return an item, the seller's refund covers only the purchase price, not the duties and taxes you paid. Some sellers will reimburse duties and taxes as a courtesy, but they are not required to. Check the seller's return policy before ordering international items if this is a concern.

If you believe the duties or taxes were calculated incorrectly, you can file a protest with CBP within 90 days of payment. This requires documentation of the item's value and origin. Contact CBP at your local port of entry or visit cbp.gov for instructions.

Understanding the charges on your bill

A FedEx duties and taxes notice breaks down what you owe into separate line items. The declared value is what the sender listed on the customs form — this is the basis for duty calculation. The duty is the percentage of that value owed to CBP, which varies by product type and country of origin. The tax is your state's sales or use tax, calculated on the declared value plus the duty.

FedEx may also add a brokerage fee — a charge for handling the customs paperwork and payment collection. This fee is FedEx's only revenue from the transaction and is typically $5 to $15, depending on the complexity of the shipment. The brokerage fee is separate from duties and taxes and is not refundable.

If the declared value seems wrong, you can contact the sender and ask them to file a correction with CBP. This is rare and takes time, so most people simply pay the bill as stated.

Frequently Asked Questions

Can I pick up my package without paying duties and taxes?

No. FedEx will not release the package until duties and taxes are paid. You cannot pick it up at a location, have it held for later, or take possession in any way without settling the bill first. Payment is a condition of delivery.

What if I did not order the package and do not want it?

You can refuse delivery, and FedEx will return it to the sender at no cost to you. You will not be charged duties or taxes. Tell FedEx you refuse the package when they contact you, or leave a note on the door tag saying "Return to Sender."

Do I have to pay duties and taxes if the item was a gift?

Yes. Duties and taxes are owed on all imported goods regardless of whether they were purchased or received as a gift. The value used for duty calculation is the declared value on the customs form, not what the sender paid.

Can I dispute the amount FedEx says I owe?

You can dispute the declared value or the duty rate by filing a protest with CBP within 90 days of payment. You will need documentation of the item's actual value and the tariff classification. Contact your local CBP port of entry or visit cbp.gov for the protest process. Disputing through FedEx directly usually does not result in a refund.

Why is the duty amount so high for a cheap item?

Duty rates vary widely by product category, not by price. Some items — electronics, textiles, and certain foods — carry high duty rates regardless of cost. A $20 shirt from China might owe more duty than a $100 tool, depending on the tariff code. The seller's declared value also affects the total; if they overstate the value, you pay duty on the higher amount.