
What does 'Duties Paid by Shipper' (DDP) mean?
Taking import duties for your own account means that you, as the sender, pay all customs duties, VAT, and handling fees instead of the recipient. In logistics, this is known as shipping DDP (Delivered Duty Paid) or duties & taxes paid by shipper.
For B2B shipments, a seamless customer experience is vital. By using the Delivered Duty Paid (DDP) Incoterm, you guarantee that the shipment is delivered directly to the client without them having to pay the local customs office first. All costs for the sender are settled with you transparently, which prevents border delays and ensures a professional image.
To dive deeper into customs regulations, read our Import Duties Guide. For official, up-to-date international trade information, you can always consult organizations like the International Chamber of Commerce (ICC).
The major USP: "Free domicile" at ParcelParcel vs. PostNL
A significant hurdle for companies shipping internationally via standard postal networks is the lack of flexibility regarding customs clearance.
The Problem with PostNL: When sending a package outside the EU via PostNL, it is often not possible to indicate that you wish to pay the import duties. The standard procedure is DAP (Delivered At Place), meaning the local courier in the destination country collects VAT and duties at the door from your customer. If the customer cannot or will not pay, your package faces major delays or is returned.
The ParcelParcel Solution: At ParcelParcel, we understand B2B logistics. We offer the standard option to take customs costs upon yourself. In our shipping platform, you can select the "Free Domicile" option (also referred to as "Bill Duties to Sender") with a single click.
This is a massive USP and makes us the ideal alternative to PostNL for professional senders. You can be certain your customer receives their shipment smoothly without hidden costs. We advance the costs in the destination country and bill them to you transparently afterward.
How "Bill Duties to Sender" works in practice
The process is remarkably simple:
Book your shipment: Log in to the MyParcelParcel platform.
Select the option: Choose "Free Domicile" / "Bill Duties to Sender" during the booking process.
Customs Invoice: Ensure your Commercial Invoice clearly states the Incoterm "DDP".
Delivery: The courier (such as FedEx, DHL, or UPS via our network) delivers the package. No costs are requested from the recipient.
Settlement: You receive an invoice from us later for the actual customs duties and taxes paid in the destination country.
Where can I indicate that I choose DDP?
You can make this choice when booking your shipment in our shipping platform.
Do you also mention a (correct) goods code, or HS code, on the customs invoice? This way, customs can easily and correctly determine the amount of import duties and other import taxes. Standard import duties are always charged to the recipient of your shipment. We have also created a tool in MyParcelParcel that allows you to easily search for HS codes based on a description. On this page, you can see how the new HS code tool from ParcelParcel works.
What is the difference between DDP and DAP?
The difference between DDP (Delivered Duty Paid) and DAP (Delivered At Place) is that with DAP, the import duties are charged to the recipient, and with DDP, the sender pays them themselves.
Import duties are standardly charged to the recipient of a shipment. This is indicated by the Incoterms term DAP. Incoterms is a standard in international transport of goods and determines the rights and obligations of buyer and seller.
If you receive a package sent from a country outside the EU, it is usually sent to you based on DAP. In this case, the import duties are charged to you, as you are the recipient.
There is also the Incoterm DDP, where the sender takes on any import duties, instead of the recipient paying them.
More information?
Would you like to ask a question to one of our employees? Of course, you can contact our logistics specialists by phone at 085 877 1656 (Netherlands) or 038 087 099 (Belgium).