Understanding Duties and Taxes
Who Pays for Duties and Taxes?
Who Pays: Duties, taxes, and fees are typically paid by either the shipper or the receiver.
Terms of Sale: Determine who is responsible for these charges as part of your sales agreement.
Understanding Incoterms When shipping internationally, Incoterms (short for International Commercial Terms) define who is responsible for the costs, risks, and tasks involved in moving goods from sender to receiver.
DDP (Delivery Duty Paid): The seller (shipper) is responsible for all shipping costs, customs duties, and taxes until the parcel reaches the buyer.
DDU (Delivery Duty Unpaid): The seller covers all transport costs to the destination country. The buyer is responsible for import duties, taxes, and customs clearance.