Help Center

Import/Export

Who pays the duty and tax?

This depends on the delivery agreement. Generally, it is the buyer that’s responsible for paying duty and tax for an import. Often, logistics providers will pay the fee directly to customs and add an additional ‘customs clearance charge’ – they will then invoice the buyer directly and will only deliver the shipment once the buyer has made payment.

However, with the increasing prevalence of cross-border ecommerce and the growing emphasis on a streamlined customer shopping experience, Delivery Duty Paid (DDP) shipping options are becoming more and more popular.

DDP is an Incoterm which specifies that the seller is responsible for the shipment until the goods are unloaded at the destination, this includes customs clearance and the payment of any duty or tax. In cross-border ecommerce, DDP is often the preferred shipment method as sellers can absorb or on-charge duty and tax at the time of checkout, which results in the best consumer experience as it eliminated hidden charges upon delivery.

To offer DDP shipping, the seller needs to be able to calculate the amount of duty and tax payable on the order in real time – and that’s where we can help.