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Usually you do not pay the duties themselves: most countries let their own goods come back duty-free when a package is returned to the sender, since nothing was really imported. But the return trip is not free, and storage fees, return shipping, and carrier handling charges can still land on someone.
This is general information, not tax advice.
Up front on scope: LetterAgent's shipping labels are Canada-only Xpresspost, so cross-border duty questions are outside what we handle; this is general guidance.
Duties are charged on imports: goods entering a country to stay there. When a package is refused, undeliverable, or sent back, the goods are leaving again, not entering. Most customs systems have a provision for exactly this: goods of domestic origin that come back unaltered re-enter without duty. The US version of this idea covers American goods returned, and Canada has a parallel treatment for Canadian goods coming home. The key word is unaltered: if the item was used, repaired, or modified abroad, different rules can apply.
| Charge | Who usually pays | Notes |
|---|---|---|
| Return shipping | The original sender, or whoever the carrier bills | Someone always pays for the trip back; it is never free |
| Customs storage fees | The importer of record, often the recipient | Accrue daily while a package sits uncleared in a customs warehouse |
| Carrier handling or brokerage fees | Whoever the carrier's terms name | Private carriers charge for processing the return through customs |
| The original outbound postage | The sender | Already paid and generally not refunded |
The pattern people miss: the duty bill often disappears, but the logistics bill does not. A refused package can cost the sender more in return freight and fees than the original shipment did.
The package sits in customs storage, fees keep accruing, and eventually the goods are declared abandoned. Abandoned goods are typically auctioned or destroyed, depending on the country and the contents. This is the worst outcome for everyone: the sender loses the goods and may still owe the carrier, and the recipient gets nothing. If a package you ordered is stuck in customs, deciding quickly, pay the charges or formally refuse it, is cheaper than letting the clock run.
Whoever sends the package back should mark the customs form clearly as returned goods, with a note that it is being returned to the sender unopened or undelivered. Keeping the original export paperwork helps: proof that the goods left the country in the first place is what supports the duty-free re-entry. Vague or missing documentation is how a routine return turns into a weeks-long customs argument.
Refusing delivery at the door is the cleanest way to send something back: the carrier marks it refused and it goes back through the system with the least paperwork. But refusing does not erase costs already incurred. If the carrier already paid duties or brokerage on your behalf to get the package to your door, their terms usually let them bill you anyway. Read the delivery notice before you refuse: it sometimes states what you will owe either way.
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