Shippit is committed to providing exceptional logistic solutions for eCommerce businesses. We are thrilled to announce that we have expanded our capabilities to offer Delivery Duty Paid (DDP) on top of the existing Delivery Duty Unpaid (DDU) services.
With Smart Routing International, our Singapore and Malaysia-based merchants can now ship DDP to an extensive list of countries.
Here are the key advantages of our expanded services:
Delivery Duty Paid (DDP):
- Smooth Customs Clearance: We handle all customs procedures and pay the import duties and taxes on your behalf, ensuring seamless clearance at the destination.
- Transparent Pricing: With DDP, the final price your customers see includes all import fees, providing a transparent shopping experience.
- Faster Delivery: By taking care of customs formalities in advance, we minimize any delays caused by clearance processes, resulting in quicker deliveries.
Delivery Duty Unpaid (DDU):
- Flexibility and Control: With DDU, you have more control over the final delivery costs, as your customers are responsible for paying the import duties and taxes.
- Cost Savings: DDU shipping can be a cost-effective solution for businesses and customers, especially when dealing with low-value or duty-exempted goods.
Reduced Complexity: We assist with necessary documentation and provide guidance to ensure a smooth customs process for your shipments.
Enabling DDP Shipping
DDP can be enabled as your default preference for international shipments, in your Settings, under Taxes and Duties.
It is also recommended that you set a Product category, as this will be used as a fall-back in the event that product-level HS codes are not present.
You can also set or adjust the DDP setting at an order level in the user interface. See below.
Booking an order with DDP
When creating an international order, you will now have the ability to choose your preferred handling of Import Taxes and Duties as either DDP or DDU. This can be set via the user interface, csv upload, or via our API or an integration, and if not set, will default to the preference from your settings. It can subsequently be changed in the user interface. Note that this section only appears for international shipments.
For accurate quoting, be sure to include accurate product details, including HS codes. Failure to do so, may result in a recalculation by customs of the duties and tax figures, causing unexpected additional charges.
In the New Orders tab, quotes will reflect the specific incoterm selected on the orders. I.e. - orders where DDP is selected will display a total that is inclusive of any duties, taxes and import fees.
Simply click on the total to see the breakdown of duties and taxes.
DDU orders meanwhile, will not have this breakdown, but clearly indicate that the recipient will be responsible for any duties and taxes.
Note that you will only see quotes for carriers that can support the specified incoterm. At present, SRI is the only carrier that supports DDP through Shippit, so no other international carrier will quote.
Manifests and Labels
Manifest and labels, as well as commercial invoices will reflect the specified incoterm of the shipment.
Import fees are levied to cover the cost of the additional handling by the carrier. They can vary by carrier, and are subject to change. Below is an example of how SRI calculate import fees for their DDP service:
- Maximum of 3% of duties & taxes, minimum of 1 USD
- No charge where duties & taxes are nil
Displaying DDP quotes at checkout, using Shopify Live Quoting
If you prefer to pass on the cost of shipping, including duties and taxes to your customers, you can do so using Shopify Connect’s Live Quoting feature.
Here is a quick guide to get started shipping DDP with Live quoting with in Shopify:
- Enable Live Quoting – you must have either (1) an Advanced Plan or higher or (2) have the paid add-on feature "Calculated rates at checkout". You may need to get in touch with Shopify to upgrade or request this add-on feature.
- (Strongly recommended) Update your product details to include HS codes. This will ensure correct calculation of duties and taxes.
- (Strongly recommended) Make mobile phone number a mandatory field in your checkout flow. This is a required field for international carriers.
- In your Configuration Options (available via both Shopify or Shippit), check the box to ‘Display import taxes and duties at checkout for international orders’.
- Make sure a carrier that support DDP is enabled in your carrier settings in Shippit.
Complete your International Customs Details, under general settings.