When you ship internationally, your package may be subject to customs duties, import taxes, and other fees charged by the destination country.
Pirate Ship gives you the option to pay these charges upfront when you purchase your shipping label, rather than having your recipient pay them when the package arrives!
We're gradually rolling out support for Product Identifier Numbers in Pirate Ship, so this option may not be available on your account just yet.
If you see the option to add Product Identifiers when purchasing a label, you're all set. If you don't see it, reach out to our Support Crew, and we'll help you get access!
What's the difference between DDU and DDP?
There are two ways to handle customs duties and taxes for international shipments:
Recipient pays on delivery (DDU, or Delivery Duty Unpaid): Your recipient is responsible for paying any customs duties, taxes, and fees before receiving their package. These charges aren't included in the cost of your shipping label.
āPay upfront (DDP, or Delivery Duty Paid): You pay the customs duties, taxes, and fees when purchasing your label, so your recipient won't have to pay them upon delivery.
Why should I prepay customs duties and taxes?
Prepaying can make international shipping smoother for everyone involved!
No surprise charges for your recipient: Your recipient won't receive an unexpected customs bill before delivery.
āFewer customs delays: Your package won't have to wait for your recipient to pay customs charges before it can be released.
āLower risk of refused or returned packages: Recipients who aren't expecting additional charges may refuse delivery, potentially resulting in a returned or abandoned package. If the package is returned to you, you may also be responsible for return shipping costs.
āKnow your costs upfront: You'll see the total customs charges before purchasing your label, with no additional customs adjustments afterward.
How do I prepay customs duties and taxes on Pirate Ship?
When creating an international shipping label:
Enter your shipment details and complete the customs form.
Click Get Rates to see your available shipping services.
On the Buy page, find the section for customs duties, taxes, and fees.
Select Pay upfront with this label.
Review the additional charges included in your label total, then purchase your label!
The amount is calculated using the information you enter on your customs form, including your shipment's contents, value, and destination.
Pro Pirate Tip: If you don't see the option to prepay, your shipment may not owe any customs duties or taxes.
Is prepaying required?
Prepaying is optional for most international shipments. However, certain shipments to the European Union (EU) require customs duties and taxes to be paid upfront.
When prepayment is required, the Recipient pays on delivery option will be unavailable.
For more information, see our article on New EU customs rules for international shipments.
Which shipping services support prepaying?
You can prepay customs duties and taxes when shipping internationally with UPS or Simple Export Rate. USPS doesn't currently support prepaid customs duties and taxes through Pirate Ship, but we're working with them closely on it so stay tuned!
How much does prepaying cost?
The amount depends on your package's destination, contents, and declared value.
When you select Pay upfront with this label, you'll see the customs duties, taxes, and applicable fees added to your shipping cost before purchasing the label. Our partner Zonos calculates and handles these charges on your behalf, so the amount you pay upfront is final.
If your marketplace has already collected VAT for an eligible EU shipment, be sure to enter your IOSS number in the Sender Tax ID field on your customs form to avoid paying that tax twice. You don't need an IOSS number to use the prepayment option š
Note: If the total value of the all items in a shipment is more than ā¬150, IOSS and VATs will not apply, and this will have an impact on the price calculated by Zonos.
What happens after I prepay?
Once you've purchased your label, Zonos handles the customs-duty and tax payments on your behalf. You don't need to make any additional customs payments through Pirate Ship.
Just print your label and make sure any required customs documentation accompanies your shipment.