How do I pay import duties when shipping internationally? — DDP (Delivered Duty Paid)

Seller calculates and pays all import duties and VAT. Better customer experience — no surprise charges. Use DDP shipping with carrier or customs broker. Cost: Duties + VAT prepaid. Timeline: At checkout.

How do I pay import duties when shipping internationally? — Duty Deferment Account

Apply with customs authority (HMRC, CBP, etc.). Defer duty and VAT payment. Settle monthly via direct debit. Cost: Free to set up. Timeline: 2-4 weeks.

How do I pay import duties when shipping internationally?

Last updated: 2026-08-17Method & sources

Sources:WTO Customs Valuation

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📋 Direct Answer

[Unverified] Figures may be out of date. Queued 2026-08-21 (uvq-import-duty-payment-methods-en-F0-05). Check the official page: https://www.wto.org/english/tratop_e/cusval_e/cusval_e.htm. Public compilation, not tax advice.

Check the official page

Import duties can be paid several ways: (1) DDP (Delivered Duty Paid) — seller pays all duties upfront, (2) DDU/DAP (Delivered Duty Unpaid) — buyer pays duties at delivery, (3) Duty Deferment Account — defer payment and settle monthly, (4) IOSS — collect VAT at checkout for imports under €150. Most cross-border sellers use DDP or IOSS to avoid customer surprise charges.

Requirements

Varies

Est. Total Cost

Immediate

Timeline

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📝 Step-by-Step Guide

Total 6 steps·Est. At checkout

Prerequisites

•Basic business registration
•Tax identification number

1
DDP (Delivered Duty Paid) - Step 1
Seller calculates and pays all import duties and VAT
2
DDP (Delivered Duty Paid) - Step 2
Better customer experience — no surprise charges
3
DDP (Delivered Duty Paid) - Step 3
Use DDP shipping with carrier or customs broker
4
Duty Deferment Account - Step 1
Apply with customs authority (HMRC, CBP, etc.)
5
Duty Deferment Account - Step 2
Defer duty and VAT payment
6
Duty Deferment Account - Step 3
Settle monthly via direct debit

💰 Cost Breakdown

Item	Cost	Frequency
DDP (Delivered Duty Paid)	10-20% higher shipping + duty advance	one-time
DAP (Delivered at Place)	Standard shipping rates	one-time
Self-filing customs declaration	€200-500/shipment for in-house team	one-time
DDP (Delivered Duty Paid)	Duties + VAT prepaid	one-time
Duty Deferment Account	Free to set up	one-time
Total Estimate	€210 – €520	Varies by jurisdiction

ℹ️GOOD TO KNOW

Duty payment timing affects your cash flow — options include prepayment, deferral, and postponed accounting

Poor timing can tie up significant working capital

🛡️ Prevention Steps

✓Model duty costs into product pricing
✓Use postponed VAT accounting where available
✓Consider duty relief programs

Item by Item

RecommendedDDP (Delivered Duty Paid)

Duties + VAT prepaidAt checkout

1Seller calculates and pays all import duties and VAT
2Better customer experience — no surprise charges
3Use DDP shipping with carrier or customs broker

Read full guide →Use tool →

RecommendedDuty Deferment Account

Free to set up2-4 weeks

1Apply with customs authority (HMRC, CBP, etc.)
2Defer duty and VAT payment
3Settle monthly via direct debit

Read full guide →

Comparison

	DDP (Delivered Duty Paid)	DAP (Delivered at Place)	Self-filing customs declaration
Pros	✓ Buyer sees final price, no surprise charges ✓ Faster customs clearance ✓ Better customer experience	✓ Lower shipping cost than DDP ✓ Buyer handles import clearance ✓ Simpler for seller	✓ Full control over HS codes and valuations ✓ Can optimize duty rates ✓ No broker markup
Cons	✗ Seller bears all duty/tax risk ✗ Higher shipping cost ✗ Complex duty calculation per destination	✗ Buyer may refuse delivery due to unexpected fees ✗ Higher return rate ✗ Worse conversion	✗ Requires customs expertise ✗ Time-intensive ✗ Errors can cause seizures
Best For	B2C sellers wanting premium customer experience	B2B sellers or low-value goods where buyer expects to handle customs	High-volume sellers with dedicated logistics team
Est. Cost	10-20% higher shipping + duty advance	Standard shipping rates	€200-500/shipment for in-house team

Tariff Calculator

After comparing options, check your own case in the free tool.

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Common Mistakes

❌ Paying duties per shipment when a continuous bond would save money for frequent importers

💥 Consequence: Higher per-shipment costs and administrative burden

✅ Fix: Evaluate continuous vs single-entry bonds based on import volume

❌ Not using duty drawback programs for re-exported goods

💥 Consequence: Leaving money on the table — up to 99% of duties can be refunded

✅ Fix: Apply for duty drawback within 5 years of importation

Seller Paths

DAP (Delivered at Place) — Buyer Pays

1. Ship with DAP terms
2. Buyer pays duty/VAT at customs clearance
3. Provide all customs documentation
4. Buyer handles clearance or uses broker

💰 Lower shipping cost; buyer bears duty⏱ Standard shipping time

DDP (Delivered Duty Paid) — Seller Pays

1. Calculate duty + VAT in advance
2. Include in product price or shipping fee
3. Arrange customs clearance (own broker or platform)
4. Pay duty/VAT before delivery

💰 Higher upfront cost; better conversion⏱ Standard shipping time + 1-2 days clearance

Next Steps

HighDetermine your import frequency to choose the right payment method1 week

HighSet up a customs bond (continuous or single-entry) for US imports1-2 weeks

MediumRegister for postponed VAT accounting if available in your destination country2-4 weeks

Get a free compliance assessment

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