- Short answer
- Managed Markets requires prepaid duties on orders to Australia, New Zealand, Norway, Singapore, the UK and any EU country.
- What trips the requirement
- The delivery address — one of the six entries Shopify lists, where the EU counts as a single entry
- Every other region
- Elsewhere, duties collection turns on or off per region; turned off, Managed Markets cannot guarantee duties collection
- If duties are not prepaid
- The buyer pays import costs to the carrier on delivery, and some carriers add a fee for collecting them
- Without Managed Markets
- Shopify Markets can charge duties at checkout per market, but that is optional, not required
- Who can use Managed Markets
- Merchants based in the continental United States, plus certain stores in Canada and the United Kingdom
Which destinations Managed Markets requires prepaid duties for
The list is closed, and it is short. Shopify names it in a single sentence on its Managed Markets requirements page, with the European Union entering as a block rather than country by country.
Managed Markets requires prepaid duties on orders that are sent to Australia, New Zealand, Norway, Singapore, the United Kingdom, and any country that's a part of the European Union.
What Shopify ties the requirement to is where the order is going: if the address sits in one of those six entries, the duties are settled before the parcel arrives rather than collected from the buyer at the door.
The European Union entry carries a recent change behind it. Since July 1, 2026 a flat €3 customs duty per tariff line applies to qualifying orders up to €150 shipped into the EU from outside it, and Shopify says that both Managed Markets and its own import tax and duty calculation handle that fee automatically, with no settings to change. The rules underneath the fee belong to the EU reform rather than to Managed Markets.
Is this a country law or a Managed Markets rule?
The rule lives on Shopify's own requirements page, under the heading Managed Markets country requirements — the part that describes the product, including the customer countries the service does not work in, whose job accurate countries of origin are, and which destinations need duties prepaid. It reads as a condition of using Managed Markets, alongside the other limits of that product.
Whether a particular destination also requires prepayment under its own customs law is a separate question, and this page does not answer it: the source here is Shopify describing its own service, not the import regime of any country. What it settles is what applies inside Managed Markets.
Outside those six entries the same product treats duties as a choice. For other regions you can turn duties collection on or off per region — and Shopify attaches a consequence to switching it off: when it is turned off, Managed Markets cannot guarantee duties collection. Mandatory for those six entries, optional and unguaranteed elsewhere.
What happens when duties are not prepaid
Outside those six entries — or without Managed Markets at all — the alternative arrangement has a name: delivered at place, or DAP. Under it, Shopify says the customer is responsible for paying any import costs to the shipping carrier, such as duties, import taxes, or brokerage and disbursement fees, upon delivery. Some carriers charge an additional fee for collecting duties on delivery when they were not paid in advance.
For the buyer that is a second bill, arriving after they thought the order was paid for. Whether they accept it is the risk sitting on the merchant's side, and our guide to the EU rules covers what a refused parcel costs the seller.
Prepaid duties are the opposite arrangement — delivered duty paid, or DDP, where the seller assumes responsibility for the import costs payable when goods cross borders. Whether a given Managed Markets parcel actually travels that way also depends on the shipping service behind the label.
Do you need Managed Markets to prepay duties?
No. Shopify Markets on its own can charge duties and import taxes at checkout: for each market you select whether they are charged, and how taxes and duties are displayed to customers in the checkout. The difference is obligation — there it is a setting you choose per market, not a requirement attached to a destination.
That route carries conditions of its own. Charging duties this way needs HS codes on your products and a store that is not using the Shopify Fulfillment Network; if your store uses shipping labels, Shopify adds that you must use a carrier that supports DDP labels.
A store that misses any of those checkout requirements can use a third-party app to calculate duties and import taxes instead. How the two products compare beyond duties is a side-by-side we make elsewhere.
Managed Markets is also not open to every store: it is only available to merchants based in the continental United States, and to certain stores in Canada and the United Kingdom. If your business sits outside that, the prepaid-duties requirement never reaches you as a Managed Markets condition, and the checkout duty settings in Shopify Markets are the lever you actually have.
This article was written entirely by AI under human editorial direction. The editor sets the topic and structure, runs multi-stage validation on facts, links, and interactive elements, and verifies the output is useful from a business perspective. All claims are checked against official Shopify sources. Details may change — always confirm critical data at shopify.com.
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