International shipments often incur duties and various taxes based on the destination country’s import regulations. This article explains how to display these costs to customers at checkout and utilize Delivery Duty Paid (DDP) solutions with Easyship. You must be on a Premier Subscription Plan to access this feature.
Displaying Duties and Taxes at Checkout
Once your store is connected, Easyship’s live rates at checkout will show the courier service, estimated delivery time, and estimated duties and taxes due upon delivery. These can be configured in your Store Settings. To understand the tax rules for specific countries, refer to our shipping destination guide.
How Import Tax and Duty Appears at Checkout
When Easyship's Shipping at Checkout feature is active, import tax and duty is calculated and displayed alongside your shipping options. Customers will see this information differently depending on whether a declared value has been specified for the shipment.
Amount Specified
When a customs value is provided, customers see an estimated tax and duty figure next to each eligible shipping method. This breaks down as:
- Pay on arrival (DDU) options show the estimated tax and duty amount due upon delivery (e.g. "Estimated USD 42.20 tax & duty due on delivery. Tax handling fees may apply.")
- Pre-paid (DDP) options show that taxes and duties are already included in the shipping cost (e.g. "USD 46.75 of taxes & duties are INCLUDED in the cost")
Amount Not Specified
When no customs value is provided, customers still see tax and duty information, but without a specific figure:
- Pay on arrival (DDU) options display a general notice that taxes and duties are due upon arrival in the destination country
- Pre-paid (DDP) options confirm that all taxes and duties are included in the cost
You can control which handling type — DDU, DDP, or both — is offered to your customers via Shipping Rules.
Pre-Paid and Post-Paid Duties and Taxes at Checkout (Recommended)
Showing only pre-paid duties and taxes can limit your shipping options. Instead, we recommend displaying both pre-paid and post-paid options.
1. Navigate to Settings > Shipping Rules.
2. Select your condition. In this example, we will use All Shipments (Always Applies).
3. Set the Action to Set import tax and duty payor > Offer 3 Post-Paid and 1 Pre-Paid suggested (for checkout only).
Remember to save both Shipping Conditions and Actions. Once the rule is created, your checkout will show pre-paid and post-paid rates.
Setting up Pre-Paid Duties and Taxes at Checkout
To display only pre-paid services at checkout, follow the below steps:
1. Navigate to Settings > Shipping Rules.
2. Select your condition, in this example, we will use All Shipments (Always Applies).
3. Set the Action to Set import tax and duty payor > Pre-paid (included in the shipping cost).
Remember to save both Shipping Conditions and Actions. Once the rule is created, your checkout will show pre-paid duty rates included in the total shipping cost.
DDP Handling Fees
When using pre-paid duties and taxes, couriers charge an additional DDP Handling Fee for covering import fees on your behalf. This fee is often accompanied by a disbursement fee, which is a percentage of the duties and taxes advanced. Despite these extra costs, DDP shipments ensure that your package isn’t returned or abandoned due to unpaid import fees.
By properly configuring your checkout settings, you provide clarity and peace of mind for your customers, reducing potential friction in the shipping process.