How do I pay import duties when shipping internationally?

Last updated: 2026-08-02·Verified: 2026-08-02

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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.

3
Requirements
Varies
Est. Total Cost
Immediate
Timeline

Item by Item

RecommendedDDP (Delivered Duty Paid)
Duties + VAT prepaidAt checkout
  1. 1Seller calculates and pays all import duties and VAT
  2. 2Better customer experience — no surprise charges
  3. 3Use DDP shipping with carrier or customs broker
RecommendedDuty Deferment Account
Free to set up2-4 weeks
  1. 1Apply with customs authority (HMRC, CBP, etc.)
  2. 2Defer duty and VAT payment
  3. 3Settle monthly via direct debit

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Sources

  • WCO Incoterms
  • Customs authority payment guidance

Disclaimer: This page is for informational purposes only and does not constitute legal or tax advice. Consult a professional for your specific situation.