What Are Customs Duties and Taxes?
If you're planning on shipping internationally, it's important to know that most international orders are subject to customs duties and taxes.
Duties and Taxes are fees charged by the destination country based on the value and type of goods being imported. When goods cross international borders, they’re inspected by customs authorities, who may impose:
Duties: A fee based on the product type and value.
Taxes: Such as VAT or GST, often calculated as a percentage of the order value.
Every shipment requires a customs declaration and/or commercial invoice, which includes details about the package contents and their value. These fees are either paid upfront by the seller (DDP) or later by the buyer (DDU). Pietra provides this anytime we're shipping internationally.
Whether these costs are paid by the seller or the buyer depends on the shipping method chosen: Delivered Duty Paid (DDP) or Delivered Duty Unpaid (DDU).
What’s the Difference Between DDP and DDU Shipping?]
Delivered Duty Unpaid (DDU):
With DDU, the seller delivers the package to the destination country, but the buyer is responsible for paying any customs duties, taxes, or additional delivery fees once the shipment reaches customs. The buyer is notified when these payments are due, and the package is held until they are resolved.
Key Considerations for DDU:
Buyers may face costs at customs.
Deliveries can be delayed if duties and taxes are not promptly paid by the buyer.
Paying customs and duties is often a expected when customers are purchasing internationally.
DDU is the most typical approach to handling international orders
Delivered Duty Paid (DDP):
With DDP, the seller assumes all responsibility for the shipping process, including customs clearance, duties, and taxes.
Key Considerations for DDP:
Faster delivery since customs fees are pre-paid.
Charges will be paid by the brand.
No unexpected costs for buyers.
If you are interested in offering DDP for international orders, please contact us at creators@pietrastudio.com