Articles on: VAT / Duties / Customs

πŸ’΅ DDP vs DAP: Who Pays Duties and Taxes on Your Shipment

When you ship internationally, customs in the destination country can charge duties and taxes before or after your parcel is delivered. Someone has to pay them: either you, when you book the shipment, or your customer, when the parcel arrives. Getting this right decides whether your customer has a smooth delivery or a surprise bill at the door.


This guide explains what duties and taxes are, the two ways they can be paid (DDP and DAP), how to pass the cost on to your customer at checkout, and how to choose when you book πŸ“¦


DAP | DDP | Duties | Taxes | VAT | Who pays


1. What are duties, taxes and fees, and how are they worked out? 🧾


When a parcel crosses a border, customs in the destination country decides what's payable. They look at:

  • The value of what you're sending
  • Where it was made (the country of origin)
  • What it is, identified by its HS code


What's payable can include:

  • Import duties: a tax on goods coming into the country, set as a percentage of the value. The rate depends on the HS code and where the product was made
  • VAT, GST or sales tax: the destination country's consumer tax, charged on the value of the goods, and often on the shipping and duties too
  • Clearance fees: charged by the carrier, not by customs, for clearing your parcel through customs. They cover processing the customs entry and, when the carrier pays duties and taxes on your behalf, a fee for doing so. They vary by carrier and destination, and are charged even when the duties and taxes are low


Added to the cost of shipping, they make up the total cost of getting your parcel to your customer's door, sometimes called the landed cost. When you book, the Shipping summary shows each one separately: Duties, Taxes and Clearance fees.


Not every shipment has something to pay. Many countries don't charge duties and/or taxes below a certain value. See De minimis values.


2. How can duties and taxes be paid? 🀝


There are two ways, and you can set a default or choose one each time you book.


DDP (Delivered Duty Paid): you pay when you book

  • The duties, taxes and fees are added to your shipment cost and billed to your TUNL account
  • We guarantee the amount at the time of booking, so there are no extra charges later
  • Your customer pays nothing on delivery


DAP (Delivered at Place): your customer pays on delivery

  • You pay for shipping only when you book
  • The carrier collects the duties, taxes and fees from your customer before or after releasing the parcel
  • If the carrier cannot collect the duties, taxes and fees from your customer then the merchant may be liable for these costs after the fact
  • The amount is an estimate until the carrier confirms it at clearance



DDP

DAP

Who pays duties and taxes

You

Your customer

When they're paid

When you book

On delivery

Surprise bill for your customer

Never

Possible

Amount guaranteed at booking

Yes

No, it's an estimate

Available to

Most destinations

All destinations


We recommend DDP. With DAP, your customer may not expect a bill when the parcel arrives. That can lead to refused or delayed parcels, unhappy customers and fewer repeat orders.


3. Can I charge duties and taxes to my customer at checkout? πŸ›’


Yes. If you ship DDP, you've paid the duties and taxes up front, so you'll want to get that money back from your customer.


You can:

  1. Use TUNL live rates at checkout (Shopify and WooCommerce). Your customer pays shipping, duties and taxes at checkout, and you book the shipment DDP. Set it up under Settings β†’ Integrations β†’ Store Integration β†’ Duties & taxes, where you can also set different rules for some countries. See How to customise your shipping options at checkout.
  2. Include the costs in your product prices
  3. Include the costs in your shipping price


πŸ’‘ Book the way your customer paid. If your customer paid duties and taxes at checkout, book DDP, so they aren't charged again on delivery. If they chose to pay on delivery, book DAP. You can see which they chose on the order.


If your product prices already include duties for some countries, see Showing duty-inclusive prices in some countries.

4. How do I choose DDP or DAP, and see the cost, when I book? πŸ“¦


  1. In TUNL, go to Book Shipment and fill in the shipment details
  2. In the Duties, taxes & trade agreements section, choose:
    • Bill my account (DDP): you pay duties and taxes up front, so the receiver pays nothing on delivery
    • Bill the receiver (DAP): the receiver pays duties and taxes on delivery, before or after the parcel is released
  3. Check the Shipping summary on the right:
    • With DDP, the duties, taxes and clearance fees are listed under What you pay TUNL and added to your total
    • With DAP, you'll see Estimated duties, taxes and fees, with the total your customer pays at delivery


You don't have to book. If you only want to see the duties and taxes, check the summary and leave the page.


πŸ’‘TUNL Economy clears customs up front, so it's always DDP. Some destinations only accept DAP, and for those you'll only see Bill the receiver (DAP).



5. Can I ship DDP every time? βœ…


Yes. Set DDP as your default, so every new shipment starts on Bill my account (DDP):

  1. In TUNL, go to Settings β†’ Shipping
  2. Open the International Shipping Defaults tab
  3. Under Default Billing for Duties and Taxes, switch it on, so it reads Merchant Pays (DDP). Switch it off for Recipient Pays (DAP)




You can still change it on any shipment when you book.


6. Which countries accept DDP? 🌍


Every destination accepts DAP, but not every destination accepts DDP. For some countries, the shipment must go DAP.


Check your destination in Which Countries Accept DDP? (Destinations That Only Ship DAP), which lists every country and whether it accepts DDP only, DAP only, or both.


7. Common questions ❓


Will my customer always be charged duties and taxes?

  • With DDP, no. You pay when you book, so your customer pays nothing on delivery
  • With DAP, it depends on the destination, the value and what you're sending. Some shipments have nothing to pay
  • Check the Shipping summary when you book to see what applies


I shipped DDP, but the carrier charged my customer duties and taxes. What do I do?

  • It shouldn't happen, but sometimes a carrier bills the receiver by mistake
  • Ask your customer for the carrier's invoice or receipt, and contact our Support Team with the tracking number
  • We'll take it up with the carrier and refund you or your customer, so the duties aren't paid twice


Is the amount I see the final amount?

  • With DDP, yes. It's guaranteed at the time of booking
  • With DAP, it's an estimate. The carrier confirms the final amount at clearance
  • Accurate product details (value, HS code and country of origin) give the most accurate amount


What if the destination doesn't accept DDP?

  • The shipment goes DAP, so your customer pays on delivery
  • Let them know before they order


Can I change from DAP to DDP after booking?

  • Contact our Support Team as soon as possible
  • We'll check what's possible for your shipment



πŸ¦Έβ€β™€οΈ Have more questions? We're here to help!


If you run into any issues or have questions, reach out to our Support Team via WhatsApp here or on email: support@tunl.to πŸ¦Έβ€β™€οΈ


Please help us help you by rating this article below. Was it useful? Your feedback means a lot to us!


Keywords: DDP | DAP | Duties | Taxes | VAT | GST | Customs Fees | Landed Costs | Who pays duties | Delivered Duty Paid | Delivered at Place | Duties and taxes at checkout | Bill my account | Bill the receiver | International Shipping Defaults | Disbursement

Updated on: 30/10/2026

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