While customs holds can be caused by a variety of factors, we’ve listed out a few of the most common issues when shipping internationally:

• Missing Shipment Information
• Incorrect Product Classification
• Unrealistically Low Customs Valuation
• Problematic Goods Descriptions
• Prohibited & Restricted Items
• Delayed Duty/Tax Payments

A Seller of Record (SOR) is a third party that takes on international tax compliance (VAT/GST), so ecommerce brands don’t have to manage it themselves.

Passport Seller of Record® (SOR) is a solution designed to give brands a simpler way to handle VAT/GST compliance with a quick and seamless enrollment process. Under the SOR® program, companies will use Passport’s tax IDs to clear shipments, avoiding complex registrations and filings. As a merchant, you’ll simply collect VAT/GST at checkout, and Passport will manage the rest, including tax returns with the proper authorities and even monitoring sales thresholds that apply to certain countries.

Passport currently offers SOR® solutions in the following markets:

• European Union (EU)
• United Kingdom (UK)
• Australia (AU)
• New Zealand (NZ)
• Norway (NO)
• Singapore (SG)
• Switzerland (CH)

A third-party Merchant of Record solution acts as an intermediary and sells products on your behalf, assuming the responsibilities associated with financial transactions, tax compliance, and other regulatory requirements. On paper, they are legally recognized as the seller, meaning their company name will appear on bank and credit card statements.

A Seller of Record is a newer alternative that offers a more flexible approach to international tax compliance than a Merchant of Record. While offering a similar solution by enabling brands to outsource their indirect tax collection, reconciliation, and remittance to a third party, SOR® distinguishes itself by not being involved in financial transactions with customers. Instead, it allows merchants to choose their own payment platform and directly receive funds.

To learn more about our SOR® services, visit https://passportglobal.com/seller-of-record/.

In the context of ecommerce, Value-Added Tax (VAT) and Goods & Services Tax (GST) are taxes levied by certain countries on the final consumption of goods and services. Although it’s ultimately paid by end customers, businesses typically collect VAT/GST at the point of sale and then remit the collected amounts to the governing authority in the consumer’s destination country.

VAT is the term commonly used in Europe, while other countries like Australia and New Zealand refer to it as GST. The variations between these international taxes come from the unique regulations each market imposes, including factors like tax rates, items that are tax-exempt, and registration requirements.

A distance selling threshold is a specific limit set by countries on the value of goods sold remotely by non-resident businesses, often through ecommerce transactions. When this threshold is exceeded, businesses must register for a tax ID and comply with local tax laws.

Duty Drawback is a U.S. Customs program that allows you to recover up to 99% of duties, taxes, and fees paid on goods that are later exported. For ecommerce brands, this can mean reclaiming significant costs on returned or unsold international orders. Passport’s a licensed and permitted customs broker, with a team that helps manage the entire process so you can focus on growth, not paperwork.

Tariffs are government-imposed taxes on imported goods. For ecommerce brands, that means higher landed costs when sourcing products overseas or shipping cross-border. Changes to tariff policy can affect everything from your profit margins to your pricing strategy. Passport’s compliance experts track these shifts in real time — helping brands adapt quickly and stay compliant while protecting their bottom line.

The de minimis threshold is the value below which goods can enter a country duty- and tax-free. In the U.S., it was $800 — but that went away as trade policies evolve. For ecommerce brands, understanding de minimis rules is crucial: it determines whether your shipments are subject to duties, VAT, or customs clearance fees. Passport’s Seller of Record® and compliance solutions help you navigate these thresholds seamlessly, so every shipment clears correctly.

The de minimis exemption came under renewed scrutiny as U.S. trade policy evolved under President Trump. The decision to eliminate the $800 threshold means more shipments are subject to duties — especially for DTC brands importing from China or shipping high-volume, low-value orders. To stay up to date on these developments, visit TrumpTradeTracker.com — Passport’s free, real-time tracker covering tariff and de minimis policy changes for ecommerce brands.

Start by auditing your supply chain and product classifications (HS codes) to ensure accuracy. Then explore opportunities for duty drawback, free trade agreements, or country-of-origin adjustments that may lower or refund duties. Passport’s licensed customs brokerage team helps identify savings opportunities while keeping your brand compliant with changing trade regulations.

No. Passport supports compliance across cross-border shipping, in-country fulfillment, and global marketplace expansion. In addition to customs, duties, and tax compliance, Passport helps brands navigate local inventory requirements, product testing and labeling standards, Importer of Record services, marketplace regulations, and ongoing operational compliance across international markets.

Seller of Record (SoR) and Merchant of Record (MoR) solve different international commerce challenges, and the right choice depends on your business goals.

Brands often choose Seller of Record (SoR) when they want to maintain direct ownership of the customer relationship while simplifying international selling. With Seller of Record, you continue controlling your brand, customer experience, payments, and operations while receiving support with international compliance, shipping, duties and taxes, and global expansion.

Seller of Record is often a strong fit for brands looking for greater flexibility, faster onboarding, and the ability to scale internationally without fundamentally changing how their business operates. Merchant of Record may be a better fit for brands looking to outsource payment processing, tax collection, and certain legal responsibilities to a third party.

Passport helps brands determine which model best aligns with their international growth strategy.

For many growing ecommerce brands, Seller of Record provides a flexible foundation for international expansion.

Rather than requiring brands to overhaul their existing operations, Seller of Record allows businesses to continue owning the customer relationship while expanding internationally with support for compliance, cross-border shipping, duties and taxes, and global operations.

Many brands start with Seller of Record because it allows them to test new international markets, scale at their own pace, and add services like local fulfillment or marketplace expansion as demand grows. The best model ultimately depends on your business, but Seller of Record is often an excellent choice for brands focused on maintaining flexibility while building long-term international growth.

Yes. Passport’s Seller of Record solution is designed to work with your existing ecommerce platform, allowing you to expand internationally without rebuilding your store or replacing your technology stack.

Whether you’re using Shopify, BigCommerce, Magento, WooCommerce, or another leading ecommerce platform, Passport integrates with your existing operations while helping manage international compliance, cross-border shipping, duties and taxes, and localized customer experiences.

This allows brands to launch internationally quickly while continuing to use the ecommerce platform and operational workflows they already know.