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No.02 · Field note

$945
at the door.

The bill that showed up after I sold a set for $2,800.

Photo of the author

Akinari Uchiyama · OPUS JDM founder (Shizuoka, Japan) · 100+ sets shipped overseas · Connect on Facebook7-minute read

TL;DR

  • I sold a set of TE37 for $2,800 shipped.
  • A $945 bill at the door. My customer was told nothing in advance.
  • I refunded him out of my own pocket and changed how I do business from the ground up.

RedditHow duties work is covered in the duties article. This is the time I screwed up, and what I changed because of it. I rewrote a post read about 96,000 times on r/Wheels in more detail. Original post ↗

01What happened

The set I sold got stuck in Memphis.

I source and sell JDM wheels in western Shizuoka. Last year I sold a used set of RAYS Volk Racing TE37 XT (18×9 +0, bronze, 6×139.7) to a customer in Florida for $2,800 shipped. Paid via PayPal. I packed the set and shipped it FedEx International.

Three weeks later, the shipment stopped at FedEx's Memphis hub. The customer sent me a screenshot of the customs portal. Holding the package hostage, it demanded $945.21.

What FedEx's customs portal demanded

  • Customs duty$840.00
  • Disbursement fee$17.47
  • Storage fee$54.16
  • Customs processing fee (MPF)$33.58

Total$945.21

The customer had no idea this was coming. He thought $2,800 was the final number. He told me: "If I'd known about this, I wouldn't have done the deal."

02What went wrong

Two things happened at once.

First: misclassification. FedEx classified the wheels as Chinese, not Japanese. Chinese origin gets a much higher rate. That alone nearly doubled the duty. On top of that, my shipping invoice was missing the manufacturer's name and address, so customs held the package in Memphis.

The customer had to call FedEx himself to find out what was happening, and send me the form I was supposed to fill in. That should never have been his job.

I contacted FedEx, submitted corrected origin documents, and fixed the classification to Japan. The $840 duty came down. But it didn't disappear.

Second: even correctly classified, duty remains. Even with the origin corrected, the duty was still $453.58.

$420.00US import duty (15%) on the $2,800 declared value
$33.58Customs processing fee
$453.58The total, even correctly classified

Look up the duty on aluminum wheels online, and you'll see 2.5%. Most buyers assume that's all they'll pay. But the real current rate is 15%.

03The real mistake

I had shipped it so the customer would pay the duties later (DDU).

With DDU (the receiver pays the duty), whatever the duty turns out to be, the bill flies straight to the buyer on arrival. The buyer can't see the amount in advance, can't dispute it before it lands, and can't prepare. FedEx just sends a "pay this or you don't get your wheels" notice out of nowhere. And while they hesitate, storage fees pile up.

My customer never once agreed to pay $453 on top of $2,800. He's right. So I refunded the $453.58 and the PayPal fees, all out of my own pocket.

04What I changed

I switched to delivering duties paid (DDP).

This wasn't a one-off shipping mistake. It was a problem with how my business worked. I switched to DDP (the sender pays the duty). That doesn't mean I eat the duty out of kindness. It means I calculate duty at the quote stage, include it in the price, and set the shipper (me) as the party billed at customs. The buyer sees one price, pays one price, and receives the wheels without FedEx coming back for more.

DDP can't be offered to every country. Customs and import rules differ, and DDP isn't practical everywhere. But for the countries where it's possible, this is now my standard.

05What you should take from this

Before you send money, ask just one thing: "Is that price duties paid (DDP), or duties due on delivery (DDU)?"

If it's DDU, duty is not included in what you pay. And that duty isn't the 2.5% Google shows — it's 15%.

If the seller doesn't know what DDP and DDU mean, that itself is your answer. That one question tells you how ready they are to ship to you.

Readers' reactions mattered to me, too. Not all of it was praise.

A commenterIt's noble, but his mistake nearly made the customer pay extra. If you do this for a living, it was easily avoidable.
A longtime observerOwning the mistake and explaining what went wrong in detail is good. But you're supposed to be the expert — you have a duty to manage this, however hard or annoying it is.

Both are right. As someone who ships internationally for a living, I should have known this before sending. I learned it the expensive way and changed how I work. That's all.

Wrapped wheels in a box sized to the wheelsRead next · 03 ShippingWhat's a fair shipping cost from Japan?Read → The Import Playbook — all articlesMarket price, shipping, duties, and who to buy from. More real-money lessons.

Ask me anything.

I'll reply within 24 hours. No sales emails, ever.

No email app needed. This sends your question straight to me. Or email me directly at stormforce@jdmexpo.jp.

What's your delivered price, duties paid?

That "$453 nobody warned you about" is in the delivered price from the start. Nothing to pay at your door.

Find wheels (all-in price)