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If you’re sending parcels internationally, you’ll need to think about customs fees when the value of goods you’re sending exceeds a certain threshold.
There are two choices when it comes to how to pay customs fees and duties:
- You pay all the charges at the time of booking on Parcel2Go – Delivery Duty Paid (DDP).
- Your recipient pays to release their parcel when it reaches their local customs office – Delivery Duty Unpaid (DDU).
Let’s look at these two options in more detail.
What is Delivery Duty Paid?
Delivery duty paid or DDP is when you pay all the duties, taxes, and customs fees before you send your parcel to someone in the EU.
What are the Advantages of Delivery Duty Paid?
DDP shipping is popular with ecommerce businesses because there are no surprise charges for customers, and the shipment will get through customs with no hold ups or delays.
Delivery duty paid is quicker and cheaper than sending by delivery duty unpaid. Look out for the services that have a green ‘pre-pay delivery duties’ flag when you get a quote with Parcel2Go.
The top three reasons to choose delivery duty paid are:
- Faster. Less processing time at customs means faster delivery.
- Cheaper. Customs charges will be less than the recipient would pay on receipt.
- Better Experience. No surprise charges for the recipient to pay.
Want to discover more ways to save on your small business shipping costs? Read our blog on How to Calculate Your Shipping Costs.
Which Couriers Offer Delivery Duty Paid?
Since 1st July 2021, it’s been possible to select DDP as a payment option on selected services offered through Parcel2Go.
We currently offer delivery duty paid with:
Who Pays for DDP Shipments?
Typically, the seller pays for DDP shipments. They will provide a total cost for shipping the item which will include postage, customs fees, duties, and taxes, which will be charged at the point of sale.
All the buyer must do then is wait for their parcel to arrive.
Does Delivery Duty Paid Include VAT?
Yes, VAT is included in a delivery duty paid agreement. As a rule, the seller will pay all fees associated with getting the goods to the recipient
What is Delivery Duty Unpaid?
Delivery duty unpaid or DDU is when the recipient pays all the customs fees, duties, and taxes once their parcel arrives in the destination country.
Your recipient’s local customs office will contact them about the charges they will need to pay before the parcel is released. Any delay to this payment may result in the parcel being returned to the sender or even destroyed.
Want to Find More About International Delivery?
If you want to learn more about international shipping, our International Shipping Hub has the answers you need on the changes to EU Value Added Tax, IOSS, and more.
