EdgeTariff - Duty and Tax

Use the EdgeTariff extension within your Adobe Commerce or Magento 2 stores and give confidence to overseas buyers with checkout transparency, which shows the cost of the goods, shipping charges, expected duties and taxes, as a Total Landed Cost (TLC).   Global buyers overcome their uncertainty because they see and pay for the TLC upfront and can then relax, knowing there is nothing more to pay, and simply receive the goods – worry free.  As the merchant, you collect all the money upfront from the buyer, which improves your cashflow, and lets you settle the shipping costs, duties and taxes with your logistics carrier in line with your agreed payment cycles.  Further, you (as the merchant) do NOT need to make any customs declarations to foreign customs because your logistics carrier did all that for you when clearing customs (your carrier may charge you a small fee percentage of clearing customs).  Bottomline, with EdgeTariff, selling internationally, just got as easy as selling domestically. 

Duties and Taxes for Adobe Commerce & Magento 2 Stores 

As part of the Edge Combined Trading Platform (EdgeCTP), EdgeTariff integrates seamlessly with Adobe Commerce/ Magento 2 stores and transforms the checkout into a fully transparent, cross-border-ready buying experience for your overseas customers. 

When an international customer enters their overseas delivery address on the checkout, EdgeTariff instantly calculates and displays the Total Landed Cost (TLC), and in the buyer’s local currency if necessary.  Such checkout transparency, ensuring that there are NO surprise charges for duties and taxes, when the goods arrive with the buyer. 

The Problem with NOT Showing Duties & Taxes  

Every Adobe Commerce or Magento 2 store selling internationally and NOT showing the expected duties and taxes, is gambling with their international buyers.  These overseas buyers are unclear on the real cost of their orders; only realising this once the parcel clears local customs and arrives on their doorstep, usually with a duty and tax bill.  This lack of checkout transparency causes: 

• Buyer’s remorse – when unknown/unexpected duties and taxes need to be paid upon receiving the goods.  If the buyer refuses to pay these extra charges, then you, as the merchant, become responsible to pay the duties and taxes
   
• Customers feel misled – that result in negative reviews, which damage your brand reputation and growth to new customers
   
• Returned goods – from customers who perceive your goods as being over-priced, resulting in return shipping costs and potential re-importing costs.
   
• Cart abandonment – overseas buyers, worried about unknown duties and taxes, simply abandon the cart or checkout and move onto another store that provides duties and taxes certainty.
   
• Lost customers – having purchased once and faced the unexpected cost of duties and taxes, these customers decide to NEVER buy from you again, which results in lost customers and tarnished brand loyalty. 

EdgeTariff Shows Duties & Taxes 

EdgeTariff shows the cost of goods, shipping charges, duties and taxes as the total landed cost on the checkout BEFORE the overseas buyer makes the purchase.  This removes uncertainty and increases checkout transparency, whilst building buyer confidence and brand loyalty. 

Enable DDP International Shipping 

EdgeTariff provides Delivery & Duty Paid (DDP) delivery or incoterms.  DDP is the ultimate convenience to overseas customers because buyers simply receive the goods and not have to be concerned with duties and taxes.  Under DDP, the logistics company clears customs in the destination country for the goods and pays the necessary duties and taxes.  Later the logistics company collects the paid duties and taxes from the seller (i.e., you the merchant) along with any shipping charges.  With EdgeTariff and DDP, selling globally becomes as easy as selling domestically. 

HS Codes & Expected Duties and Taxes Calculations 

Before selling any product internationally, as a merchant, you need to ensure that each product has a Harmonized System (HS) code, comprised of at least 6-digits.  HS codes enable customs authorities, around the world, to conveniently identify the product(s) that are in your consignment, without having to open the packaging.  The customs authorities use the HS codes, usually found on your accompanying Commercial Invoice (CI), to calculate the duties and taxes for your product(s) and clear customs.  Similarly, EdgeTariff uses your product(s) HS codes to pre-calculate the Expected Duties and Taxes (EDT) BEFORE to show duties and taxes on the checkout to the overseas buyers before they make the purchase. 

HS Codes: 6-Digits vs Fully Qualified 

The first six digits (counting from the left) of a HS codes are known as the HS6 code.  HS6 codes are universally recognised by over 208 countries and identify the product’s purpose and material it’s made from (i.e., construction).  For example, 650610 is the HS6 code for a motorcycle helmet (i.e., safety headgear). 

Each country’s customs authority then extends the HS6 code, by adding additional digits to the right of the first 6-digits.  These extra digits (beyond the first 6-digits) allow the customs authorities assign their country specific “tariff treatments” to the product.  For example, the UK customs authorities would extend the universal HS6 code for a motorcycle helmet of 650610 to 650610.8000 (i.e., adding 8000 to the right of the first 6-digits), which lets them to apply a duty rate (say 2%) and a tax rate (say 20%) as a treatment at their UK HS10-digit level.   In a similar way, the Canadian custom authorities would use the universal HS6 code for a motorcycle helmet of 650610 and extend it to 650610.1090 (i.e., adding 1090) and apply duty (say 0%) and tax (say 20%) treat at their Canadian specific HS 10-digit level.  Generally, HS codes beyond the 6-digit level are country specific and are sometimes referred to as Fully Qualified (FQ) codes.   

EdgeTariff for Magento has enough flexibility to calculate duties and taxes for products at both the HS6 and FQ levels, which makes it easy for merchants to show duties and taxes on their Magento checkouts, even if their products only have HS6 codes.  

Why HS Code Accuracy Matters 

HS codes are not simply product labels — they are legally recognised product classifications used by customs authorities to determine a product’s the import duty rates, import taxes, and compliance (e.g., prohibited goods, fit for human consumption, etc.) requirements.  A product found to have an incorrect HS code can result in: 

• Inaccurate duty and tax calculations 
• Customs clearance delays 
• Shipment rejections and/or fines and penalties 
• Additional import charges for customers 
• Reduced customer trust 

If you, as a merchant, are unclear or worried about how to classify your product(s) with the correct HS code, then use EdgeTariff’s Product Pre-Classification (PPC) service, where technology and professional licensed customs brokers analyse, identify and assign the correct HS6 and FQ codes to your product(s). 

EdgeTariff Features & Benefits 

EdgeTariff is more than just an expected duties and taxes calculator. It is designed to for Adobe Commerce and Magento 2 store owners, who want to trade their goods internationally and want an integrated toolset that make going global simple.  

1. Show Expected Duties & Taxes (EDT) at Adobe Commerce & Magento 2 Checkout

Expected Duties & Taxes (EDT) is the core feature of EdgeTariff.  Its main benefit is to enable your international customers to see (on the Adobe Commerce or Magento 2 checkout) the cost of goods, shipping charges, duties and taxes, as a Total Landed Cost (TLC).  EDT provides checkout transparency and increases overseas customer confidence, both to buy now and come back to buy again. 

If desired, the Adobe Commerce or Magento 2 checkout can show the TLC amounts in the buyer’s local currency, which further increases a positive buying decision outcome.  

2. Product Pre-Classification (PPC) 

Product Pre-Classification (PPC) is a feature that lets merchants request that their product(s) be classified/assigned with Harmonized System (HS) codes.  Any product being sold and shipped internationally must have a HS code.  Assigning the correct HS codes to a product is critical because the HS code drives the expected duties and taxes.  Duties and taxes need to be paid for each product to clear a destination country’s customs border.  Therefore, the Product Pre-Classified (PPC) process accurately assigns the correct HS codes (usually once in the product’s lifetime, based on the product’s “purpose” and “material” it’s made from) so that the product is eligible for sale internationally.  

If a product has variants (e.g., different colours, sizes etc.), and its “purpose” and “material” (making up the product) remain the same across the variants, then only the main/parent product needs to be assigned a HS code, and the variants will inherit the HS code of the parent product.  

As a merchant, EdgeTariff lets you either self-assign HS codes to your products or request that EdgeTariff and its licenced customs brokers, professionally analyse, identify and assign HS codes to your product(s).  EdgeTariff for Adobe Commerce and Magento 2 can classify product(s) to both the universally recognised HS6 (6-digit) code and the country-specific Fully Qualifier (FQ) code of 10-digits or more. 

3. Restricted Party Screening (RPS)  

Restricted Party Screening (RPS) helps Adobe Commerce and Magento 2 merchants screen international customers, across 33 global live denied and restricted party lists, ensuring that the store and business remain compliant against unknowingly trading with restricted individuals, sanctioned organisations, or prohibited destinations. 

EdgeTariff provides a simple and easy to use feature that at a flick of a button allows a merchant to screen a customer or contract within Adobe Commerce and Magento 2 – it couldn’t be easier to stay compliant. 

4. Multi-Destination Shipping (MDS)  

Multi-Destination Shipping (MDS) is a powerful feature designed for Magento 2 and Adobe Commerce stores that allows overseas customers, who buy two or more products, to send them to two or more international destinations from one checkout.  This feature is good when a store sells gift boxes, hamper sets, corporate gifting products, seasonal bundles, and special-occasion items.  Instead of forcing buyers to complete multiple checkouts, each for different countries, EdgeTariff allows buyers to send products to several international destinations in one checkout that shows the cost of goods, multiple shipping charges, multiple duties and taxes, all combined into ONE checkout total landed cost.  This makes your store buying experience more convenient for international gift purchases. 

5. Customized Bundled Products (CBP)  

Customized Bundled Products (CBP) is designed for Magento 2 and Adobe Commerce merchants who sell product bundles to international customers.  CBP allows store owners to group different individual products into a single bundle and make it available for international sale as a combined bundle.  EdgeTariff will still calculated the appropriate duties and taxes for every individual product within the bundle, based on each product’s HS code, ensuring the Total Landed Cost displayed conveniently on the checkout as a single value to global buyers, is accurately and transparently calculated.  EdgeTariff supports both pre-defined bundles and customer-created bundles. 

6. Product Packing Matrix (PPM)  

Product Packing Matrix (PPM) is designed for Magento 2 and Adobe Commerce merchants who want complete control over international shipping costs. This feature allows you to define exactly how each product will be packaged and shipped — including packaging type, weight, dimensions, and preferred carrier methods.  EdgeTariff then uses the pre-defined packing matrix to identity shipping charges as either the “best fit” or merchant specific packing configuration for a customer’s order into Transport Packaging (TP). 

The PPM feature of EdgeTariff for Magento 2 and Adobe Commerce eliminate one of the biggest problems in cross-border eCommerce trading, i.e., inaccurate shipping charges, which to most destination countries, require shipping charges to be included with the cost of the goods, to calculate duties and taxes.  This means, inaccurate shipping charges, means inaccurate duties and taxes (to most destination countries).  PPM reduces the shipping charges inaccuracy and therefore, increases the accuracy of the duties and taxes shown to the overseas buyer on the checkout. 

7. Multi-Store Dashboard (MSD)  

The Multi-Store Dashboard (MSD) feature of EdgeTariff is built for growing Magento 2 and Adobe Commerce merchants who manage multiple storefronts across different countries, regions, or customer types. EdgeTariff works seamlessly across all Magento stores from a single installation, allowing merchants to calculate and display accurate duties, taxes, and total landed cost on every store without needing separate systems.  EdgeTariff for Magento 2 and Adobe Commerce built-in admin dashboard gives merchants complete visibility of international order costs, shipping charges, duties and taxes across the multiple stores in a single convenient location. 

Why Choose EdgeTariff? 

EdgeTariff is not just another expected duty and tax extension for Magento 2 and Adobe Commerce, it uses the freshest and largest customs clearance databases in the world, which delivers unparalleled accuracy in the expected duties and taxes shown on a checkout.  Additionally, EdgeTariff contains several value adding features that benefit both the merchant and overseas buyers.   

Uniquely, EdgeTariff gives access to its primary application EdgeCTP, a business operations support solution, which gives the merchants a CRM, Stock Control & Manufacturing, Documentation (Commercial Invoice, Packing Lists, Certificates etc.), Shipping workflows, fulfilment, labelling, tracking and returns handling, accounting package connections and much, much more. 

How to Get Started with EdgeTariff? 

At a high-level, to start use EdgeTariff with your Magento 2 or Adobe Commerce store, you’ll need to perform the following SIX steps: 

1. Installed the EdgeTariff extension into your Magento 2 or Adobe Commerce store  
2. Visit www.edgectp.com or www.edgetariff.com and sign up to EdgeCTP (the main application) 
3. Once you’re logged into EdgeCTP, connect your Magento 2 or Adobe Commerce store into your EdgeCTP settings 
4. Add and connect your logistics carrier(s) accounts into EdgeCTP settings (to request and receive shipping rates) 
5. Make sure that your product(s) have HS codes (at least to 6-digits) and Countries of Origin within your Magento 2 and Adobe Commerce store  
6. Perform a test purchase with an overseas address and see that expected duties and taxes appear on your store’s checkout 

How Much is EdgeCTP & EdgeTariff? 

EdgeTariff is priced specifically for eCommerce merchants who use Adobe Commerce and Magento 2.  Latest pricing can be found on EdgeTariff Pricing. 

Remember that with EdgeTariff you get EdgeCTP included in one single price.