When you ship internationally, customs agencies charge duties and taxes separately from your shipping rate. Here's how those fees are calculated, who pays them, and how to set your preference in Sellbrite.
How customs fees are calculated
Customs agencies determine duties and taxes based on several factors, including the commodity type, quantity, value, and country of manufacture. These fees aren't included in your shipping rate. Instead, the customs agencies of the sending and receiving countries add them on after the package has shipped.
Who pays the customs fees: DDP vs. DDU
You have two options for handling customs fees:
DDP (Delivery Duties Paid): You, the merchant, cover all customs charges.
DDU (Delivery Duties Unpaid): Your customer pays the customs charges upon delivery.
If you don't select an option, Sellbrite defaults to DDU.
How to select DDP or DDU
During the label-creation process, find the customs form.
Select the green Additional options link to reveal extra customs settings.
From the Incoterm dropdown menu, choose DDP or DDU.
Keep in mind that if you select DDP, Sellbrite won't calculate your duties and taxes right away. Instead, you'll be charged for these fees roughly three weeks later.
Carrier-specific notes
DHL Express charges an additional processing fee whenever you choose DDP.
USPS doesn't support DDP at all. USPS shipments always bill duties and taxes to the recipient (DDU), regardless of what you select.