Duties & Taxes at Checkout

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.

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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). 

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Remember to save both Shipping Conditions and Actions. Once the rule is created, your checkout will show pre-paid and post-paid rates.

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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)

 

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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. 

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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.

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