# Who Pays Duties and Taxes: DDU vs DDP When shipping worldwide, one of the most important things to get right is who pays the duties and taxes. That’s where Incoterms (International Commercial Terms) comes in. These are global trade rules that define who’s responsible for shipping, insurance, customs clearance, and import charges. In e-commerce and small parcel shipping, the two most common Incoterms are DDU and DDP. WHAT IS DDU? Delivered Duty Unpaid (DDU), aka Delivered at Place (DAP): The buyer/receiver is responsible to pay all duties, taxes, and clearance fees when the shipment arrives at the destination country. WHAT IS DDP? Delivered Duty Paid (DDP): The seller/sender takes responsibility to pay all duties, taxes, and clearance fees — so the shipment will be delivered smoothly at the receiver’s door without any additional payment collection. -------------------------------------------------------------------------------- HOW TO SHIP DDP WITH URSHIPPER? > ⓘ Important Update: > > Effective January 2026, DDP service (duty/tax billed to Sender) will only be > available for the members of UrShipper Discount Program > [https://help.urshipper.com/article/1071-Discount-Program] (minimum 4-week > spending of at least 5,000,000 IDR), or an advance deposit of 5,000,000 IDR is > required. To use DDP with UrShipper, you’ll only need to specify the Import Duty/Tax Bill to: Sender when creating shipping labels [https://g3j1.engage.squarespace-mail.com/r?m=68ad52f18fbffa7c16ffab1d&u=https%3A%2F%2Fhelp.urshipper.com%2Farticle%2F1075-Create-Shipping-Label%3Fss_source%3Dsscampaigns%26ss_campaign_id%3D68a84013a6292e21115c56d8%26ss_email_id%3D68ad52f18fbffa7c16ffab1d%26ss_campaign_name%3DTrump%2BTariffs%253A%2BWhat%25E2%2580%2599s%2Bthe%2BImpact%2B%2526%2BWhat%2Bto%2Bdo%26ss_campaign_sent_date%3D2025-08-26T06%253A23%253A59Z&w=5fd35dfdfa4efa0a1b71f821&c=b_68a84013a6292e21115c56d8&l=en-US&s=EyItRnIeQHivwVDgANrJ1kt76U0%3D]. UrShipper will first handle the duties and taxes payment on your behalf — then will charge it to your UrShipper account — typically a couple weeks after the shipment is delivered. > ⚠️ Duties/taxes calculation are not included in UrShipper shipping rates. If > you ship DDP, calculation and collection of duties/taxes are solely your > responsibility. ⓘ UrShipper DDP Service Flow: 1. Sender calculates and collects duties, taxes, and clearance fees from the buyer/receiver (or decided to absorb the cost). 2. Sender ships with UrShipper DDP (only shipping cost is charged at this point). 3. UrShipper handles the duties, taxes & clearance fees payments in advance. 4. Package continues to delivery once it's cleared customs. 5. UrShipper issues DDP Invoice to sender once it’s billed by the carrier. -------------------------------------------------------------------------------- HOW TO CALCULATE THE IMPORT DUTIES AND TAXES? If you’re using Shopify, you can auto-calculate and collect duties and taxes at your store's checkout. Here's how ⟶ [https://help.shopify.com/en/manual/international/duties-and-import-taxes/charging-duties] If you’re selling on Etsy or other platforms, you can use Zonos duty & tax calculator [https://zonos.com/landing-page/etsy], ChatGPT, or Gemini AI to get the estimates. -------------------------------------------------------------------------------- ARE THERE OTHER FEES ASSOCIATED WITH DDP SHIPMENTS? Yes. Sending a DDP means the seller (sender) is responsible with the entire total landed costs — so the buyer (receiver) won’t have to do or pay anything . This also includes the brokerage/processing fees charged by the carrier who help clear your shipments from customs. * DHL Express “Duty Tax Paid [https://mydhl.express.dhl/id/en/ship/optional-services.html]” Fee: 2% of the Total Customs Charges or a minimum of 320,000 IDR (≈ 19 USD). * FedEx “Ancillary / Disbursement Fee [https://www.fedex.com/en-id/ancillary-clearance-service.html]”: Vary depending on the destination country, for shipments to the U.S.: 2% of the Total Customs Charges or a minimum start from 15 USD. * Aramex “Free Domicile” Fee: 2% of the Total Customs Charges or a minimum of 14 USD for their priority service; and 3% of the Total Customs Charges (no minimum) for their economy service. On top of that, UrShipper will charge a flat Processing Fee of 30,000 IDR per DDP shipment. -------------------------------------------------------------------------------- SHOULD I SHIP DDU OR DDP? Unless you’ve already collected duties and taxes from your customer (or you’re willing to cover them yourself), you probably don’t want to pay those extra costs out of pocket. * If you’re new to international shipping or unsure about how much the duties and taxes will be: you should ship DDU. This way, the receiver will pay for the duties and taxes. * If you collect duties and taxes from the customer upfront (or decided to absorb the cost): go with DDP. This will result a smoother delivery and a better customer experience. -------------------------------------------------------------------------------- WHY SHOULD YOU CARE ABOUT DDU AND DDP? When selling internationally, import duties and taxes may apply depending on the country regulations, and if so, someone has to pay those — either you or your customer. Nobody likes surprise costs after a shipment arrives, so it’s important to set the right expectation up front. Every country sets its own rules and rates, usually based on the declared value of what you’re shipping. Depending on the destination and the country De Minimis [https://help.urshipper.com/article/1041-De-Minimis-Value] value, you may decide to ship under DDU or DDP. The key to successful cross-border sales is avoiding unwanted surprises for your customers. International shoppers are savvy — they expect transparency about fees and total delivery costs. If duties and taxes aren’t made clear, many customers may abandon the shopping cart. That’s why it’s crucial to communicate who is responsible for these costs (you or the buyer) before checkout.