forward2me Now Offers DDP Shipping
As an international shopper, you may have noiced terms like DDP, DDU, and DAP on your shipping labels. However, you may not know what they mean or how they affect the shipping process. On this page, we explain DDP and its benefits for you.
What Is DDP Shipping?
Delivered Duty Paid (DDP) is one of many international commerce terms, better known as incoterms, used to describe the delivery of goods between two parties. In the case of DDP the shipper is responsible for all costs associated with the international delivery.
How Does Delivered Duty Paid Work?
- Known Cost: We determine all shipping fees, customs duties and taxes before shipping.
- Single Transaction: Unlike DDU (Delivery Duty Unpaid) shipping, there is no need to make a seperate payment to a local customs broker.
- Time Efficiency: DDP packages typicaly arrive faster than DDU packages.
- Cost Effective: Total cost of importing the goods to you door is lower.
Benefits of DDP
- Convenience: All duties and taxes are handled by forward2me, providing you with a simpler shopping experience.
- Transparency: You see the complete landed cost before the goods are shipped and before you pay avoiding any suprises.
- Speed: Enjoy a faster and smoother delivery experience.
- Cheaper: Taxes and duties are calculated the same way whether you ship DDP or DDU. By using forward2me to handle the taxes and duties you can avoid the often hefty "disbursement fees", "processing fees", "handling fees" and other creative ways local customs agents find to apply charges.
Important Considerations
DDP vs DAP/DDU
With DDP
All duty and taxes are handled in advance and are included in your shipping fee, no surprise costs.
Shipping DDP means the duties, taxes and all other fees required to send the shipment from the shipper to the recipient.
The risk of delays or issues at customs are minimized.
With DAP/DDU
Duty and taxes are payable at the border on import seperate to the cost of shipping.
Shipments may be delayed while customs calculate what's owed and issue invoices.
Risk of packages being held for payment of duty and tax, incurring storage fees or being returned to sender.
FAQ
DDP (Delivered Duty Paid) and DTP (Duties and Taxes Paid) are very similar with the shipper handling all costs and responsibilities, including import duties and taxes, delivering the goods directly to the buyer’s final location. DDP requires the sender to be the IOR (Importer of Record), which is the person officially responsible for making the delivery compliant with all legal regulations in the destination country. The IOR has implications for who can reclaim taxes and duties in some scenarios such as returning goods internationally.
Yes. While the taxes and duties are calculated exactly the same as they would be by the customs agent at the border, the difference is in the additional charges that customs agents apply for their own services. They are charging you to calculate the taxes and duties and then collect the money from you. Depending on the country and specific customs agent, you might see a $25 disbursement fee and a $10 processing fee from the agent when the taxes and duties themselves might be a smaller amount such as $8. This can be frustrating. It's important to remember - every shipment is different and every country has its own rules and rates.
We use our expertise and industry insight to estimate all potential fees, including customs duties, taxes, and other related expenses.These estimated fees are incorporated into your total shipping cost, allowing you to know exactly how much you need to pay before your package arrives. Our Delivered Duty Paid (DDP) fee includes duty, VAT and brokerage costs associated with the calculation of the duty and VAT. However, this fee doesn't cover:
- Costs related to additional inspections;
- Clearance processes requiring an import licence;
- Storage fees due to delays from these procedures.
While we cover export documentation and duty and tax within DDP, you may still be contacted by customs for additional documents such as additional proof of purchase or import license information.