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Who pays the customs duty

This is the question that turns up after the sale rather than before it. It is worth settling before you quote a price.

The short answer

By default, the person receiving the parcel pays any duty and tax their own country charges on arrival. Two customs authorities see your parcel: India on the way out, and your customer s country on the way in. The second one sets the duty, against the declared value, and bills whoever is receiving it. Every country sets its own threshold below which nothing is charged.

What DDP and DAP mean, without the jargon

These are Incoterms — the standard shorthand for who carries which cost. DAP (delivered at place) is the default above: you cover the freight, your customer settles duty and tax on arrival. DDP (delivered duty paid) means the duty is settled before delivery, so nothing is asked of your customer at the door. If you have seen CPT or CIF in the same list, those are freight-and-insurance terms and they leave import duty with the receiver too.

Where we ship duty paid

Some lanes and services go duty paid, which means the duty is in the price and your buyer has nothing to pay at the door. Which lanes and which service they are changes, so the rates page and every quote tell you before you book rather than this page telling you now. Everywhere else, duty and tax are settled by the receiver on arrival.

It is worth choosing a duty-paid lane where one exists.

What this means for how you price

If you quote your customer a single delivered price and absorb the shipping, you are effectively selling DAP and they may still be billed on arrival. Either say plainly at checkout that duty is payable on delivery in their country, or ship to a destination where it is already paid.

Where to start

Open a business account and tell us what you sell. We call every new business on WhatsApp within a working day, usually to settle exactly the question this page is about, and you are on the right route before your first parcel moves.

Questions

Does the sender or the receiver pay customs duty?

The receiver, by default, in their own country and against the declared value. The exception is a duty paid service, where the duty is in our price and nothing is asked of your customer on delivery. The rates page and every quote show which lanes and services those are.

Will my customer in Toronto be charged duty, and can I pay it instead?

Canada charges duty and tax to the receiver on arrival above its own threshold. Ask us before you quote if you want to cover it for a specific lane rather than leaving it with your customer.

What is the difference between DDP and DAP?

DAP means you cover freight and your customer settles duty and tax on arrival. DDP means duty is settled before delivery and your customer is asked for nothing. We offer duty paid on some lanes and services; the rates page and every quote say which.

Send your next order

Open a business account and tell us what you sell. We call every new business within a working day, usually to settle exactly which route you are on.