When shipping to another country, duties and taxes may apply to your shipment. The recipient of the shipment is generally responsible for paying any duties or taxes. However, there may be instances where you as the merchant will want to cover the cost of duties and taxes.
When a merchant pays it is called Delivery Duty Paid or DDP. Within ShipStation, the setting you use for DDP is called Bill Int’l Duties to Payor of Shipping Charges.
There are a few things to know about DDP:
The merchant is responsible for all the costs associated with shipping.
Not all carriers provide this option, but many do.
You should explicitly convey to your customers if you mark up your prices to cover duties and other fees.
DDP is very convenient to your customers because it removes the burden of paying another fee before receiving their shipment. They just have to wait for their shipment to arrive. It is especially appealing if the merchant absorbs all the costs.
Usually, the advantage for the merchant can come from having a steady, reliable market in a certain place. This will reduce risk if you know you can reliably send shipments to the destination country.
In ShipStation, you can manually apply DDP to individual orders or you can create an automation rule that will do it automatically for you.
Select a supported carrier from the Service dropdown under Configure Shipment section.
This example shows FedEx International Ground as the selected service.
Tick the box to Bill duties and taxes to Payor of shipping charges that now appears in the Other Shipping Options section.
USPS First Class International to Canada
For USPS First Class International to Canada services, use the Duties/Taxes dropdown menu in the Configure Shipment Widget instead. This option will allow you to prepay a flat fee for any cross-border duties or taxes that will apply to the shipment.
Bill Int’l Duties to Payor of Shipping Charges is one of the actions available for automation rules. You can set up your criteria based on the destination country, carrier, customer, or other necessary limits.
An automation rule will tick the box to Bill Duties to Payor automatically when qualified orders import into ShipStation.
Having the option to bill duties to the payor is only available when shipping with certain carriers. The following carriers support DDP:
Available only when using your own DHL Express account (not with DHL Express from ShipStation).
USPS when shipping First Class International from the US to Canada only.
Use the Duties/Taxes drop-down menu in the Configure Shipment Widget and select the option to Prepay Duties and Taxes. You will be charged a flat fee for each shipment that uses this option.