New Duty-Unpaid Shipping Option

What It Means

Duty unpaid (DDU) allows merchants to ship internationally without prepaying duties, taxes, or clearance fees. Instead, the importer/recipient covers these costs when the shipment enters their country.

Why Businesses Choose DDU

• Simplifies operations – no need to manage foreign duty calculations.
• Keeps checkout prices lower – duties aren’t built into product pricing.
• Supports market demand – e.g., increased U.S. demand after Section 221 changes on Chinese imports.
• Carrier option – Canada Post offers DDU for U.S. shipments, with USPS handling final delivery.

Limitations to Consider

• Customer communication required – recipients must know they will pay duties or risk refusing the shipment.
• Possible delays – clearance only happens after duties are paid.
• Limited carrier support – not all providers offer DDU services.

DDU in the Canadian Context

• Exports: Canadian merchants can ship DDU abroad and leave duty settlement to foreign buyers.
• Imports: Businesses importing into Canada via DDU must ensure customers/partners understand GST/HST, duties, and clearance fees apply on receipt.
• Best practice: Clearly disclose DDU terms in invoices, checkout flows, and shipping policies.

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