Customs duty, DDP and DAP: who pays when you ship to the US and the UK?

What do DDP, DAP and DDU mean?

These terms come from the Incoterms delivery rules published by the International Chamber of Commerce (ICC). Incoterms set out which party bears transport costs, risk and customs formalities between seller and buyer. The current edition is Incoterms 2020, with 11 rules.

• DAP (Delivered at Place): the seller carries the goods to the buyer's address. Import clearance, customs duty and import taxes are the buyer's responsibility.
• DDP (Delivered Duty Paid): the seller carries the goods to the buyer's address and also handles import clearance, customs duty and import taxes. The buyer pays nothing on delivery.
• DDU (Delivered Duty Unpaid): an old term. The ICC removed DDU in the 2010 edition, and DAP largely took its place. Carriers' booking screens may still show it; in practice it means something close to DAP.

How is customs duty calculated?

The basic formula is simple: customs value times the tariff rate. In most cases the customs value is the price of the goods. The rate is read from the product's tariff code (the HTS in the US, the commodity code in the UK). Choosing the wrong code means paying the wrong duty and risking penalties later.

In the US, additional tariffs on certain countries or products are added to the general rate. They are also calculated on the customs value and stack on top of the general rate. Processing fees come on top of that. In the UK, import VAT applies alongside customs duty.

What happened to the US $800 duty-free threshold?

For years the US allowed shipments valued at $800 or less to enter duty-free (de minimis, Section 321). That treatment no longer exists:

• May 2, 2025: suspended for goods from China and Hong Kong.
• August 29, 2025: suspended for all countries and all modes of transport, including mail.
• June 24, 2026: CBP (US Customs and Border Protection) made the suspension indefinite and wrote it into its regulations.
• Separate exemptions for genuine gifts between individuals and for travelers' goods were not affected; commercial sales cannot use them.

Which additional tariff applies to goods from Türkiye as of November 2026?

The country-specific additional tariffs of 2025 were based on a law known as IEEPA. In February 2026 the US Supreme Court held that this law does not authorize such tariffs; those duties ended and a temporary global surcharge replaced them. That surcharge also ended when it expired in July 2026.

As of November 2026, the rule in force is the set of Section 301 tariffs imposed by the Office of the US Trade Representative (USTR), effective July 24, 2026. They apply additional duties of 10% or 12.5% to 60 economies; goods originating in Türkiye fall in the 12.5% group. The duty applies on top of the product's general tariff rate. Goods covered by Section 232 tariffs (such as steel, aluminum, copper and their derivatives, and autos and auto parts) and products listed in the annexes of the notice are excluded.

These tariffs are being challenged in court, and rates may change again. Before shipping, check your product's HTS code, the additional-duty headings in Chapter 99 and CBP's latest guidance.

How does a shipment clear US customs?

US entries are filed in CBP's electronic system, ACE. The type of entry depends on the value of the shipment and how it travels.

• $2,500 or less: an informal entry is generally possible. Goods subject to quota, antidumping duties or other agency requirements may still need a formal entry.
• Over $2,500: a formal entry and a customs bond are required.
• Express courier: carriers such as DHL, FedEx and UPS file entries through their own brokerage units. They collect duty from the shipper under DDP or from the recipient under DAP, and add their own processing fees.
• Mail: in July 2026 CBP introduced a new entry process for mail. The entry is filed by the owner or purchaser of the goods, or a licensed customs broker they designate; a bond is required and duty is paid monthly. CBP no longer collects duty on delivery. Because goods subject to Chapter 99 additional duties must use a formal entry, mailing goods from Türkiye may have become more complicated since October 2026; confirm with your carrier and a broker.
• Merchandise processing fee (MPF), from October 1, 2026: on formal entries, 0.3464% of value, with a minimum of $34.58 and a maximum of $670.86. On automated informal entries, $2.77 per entry. Mail shipments are generally exempt.
• Harbor maintenance fee (HMF): 0.125% of the value of commercial cargo arriving by sea. It does not apply to air cargo.

Who is the importer of record? Is Amazon the importer for FBA?

The importer of record (IOR) is the party responsible for the customs entry, paying duty and complying with the rules. In the US, the IOR may be the owner or purchaser of the goods; alternatively, a licensed customs broker they designate files the entry.

Amazon does not act as importer of record for FBA inventory. According to Amazon's help pages, you may not show Amazon as the importer on the entry; Amazon can only be listed as ultimate consignee with "in care of FBA" before its name. Non-compliant shipments may be refused or returned. For FBA warehouses in the UK, Amazon asks for a GB EORI number and a UK VAT number, or a UK partner who acts as importer of record. Check the current requirements in Seller Central.

• For bulk FBA shipments, the IOR is usually the seller (through a US company or as a foreign company) or a firm offering this service.
• A formal entry needs a customs bond: either a single transaction bond or a continuous bond valid for one year. For regular shipments, a continuous bond is usually more practical.
• Country of origin marking: foreign goods entering the US, or their containers, must show the country of origin in a way the ultimate purchaser can see (for example, "Made in Türkiye"). Unmarked goods may be held or need extra handling.

Why is DDP preferred for consumer sales?

In a sale to an individual customer, DAP leaves the duty to the customer. Customers often find out at the door, through a payment request from the carrier. If they refuse to pay, the parcel goes back; the shipping cost is lost, and the sale may turn into a refund and a negative review. On Amazon, this can affect your order defect rate and account health.

That is why marketplaces and carriers push DDP for consumer shipments. Etsy, for example, made DDP, with duties built into the price upfront, the expected method for shipments to the US. Under DDP you pay the duty, so it has to be part of your price and your margin calculation.

Worked example: what does a $29.99 towel pay entering the US?

The calculation below is for illustration only. The product is a cotton towel made in Türkiye. Under HTS 6302.60.00 (toilet and kitchen linen of cotton terry fabric), the general rate is 9.1%; Türkiye is not among the countries with a preferential rate for this code. The Section 301 additional duty is taken as 12.5%. Rates are as of November 2026; your product's code and any annex exclusions may differ.

• In scenario A, the customs value is taken as the sale price to the customer, with shipping shown separately on the invoice.
• In scenario B there is no sale to a US buyer, so the value is assumed to be the unit price on the export invoice ($10). Agree with your customs broker how the value of an FBA shipment is determined.
• Shipping units one by one costs noticeably more per unit in duty and fees than a bulk shipment, because duty is charged on a higher value and fixed fees fall on a single parcel.
• To see unit profit after referral fees, FBA fees and advertising, see our marketplace fee comparison guide.

How does the UK £135 rule work?

In the UK, VAT is collected at a different point depending on the value of the consignment. The threshold is a total consignment value of £135 (excluding separately shown transport and insurance).

• £135 or less, direct sale: VAT is charged at the point of sale, not at the border. If you sell from your own website, you charge the VAT and pay it to HMRC.
• £135 or less, sale through a marketplace: the marketplace, such as Amazon, charges and pays the VAT. If the buyer is a business that gives a valid UK VAT number, the buyer accounts for the VAT.
• Over £135: normal import rules apply, and import VAT and customs duty are due at the border.
• If the stock is already in the UK (for example, FBA UK) and an overseas seller sells through a marketplace, the marketplace is responsible for VAT on the sale whatever the value. Import VAT and customs duty on the original import of that stock remain the seller's responsibility.
• Coming change: the government has decided to remove the customs duty relief that currently applies to consignments of £135 or less, with October 2028 announced as the date. The VAT rules are separate.

Bulk imports into the UK: duty and preferential origin for goods from Türkiye

The UK's customs tariff is the UK Global Tariff, and rates per product are shown in the UK Trade Tariff tool. For the same towel (6302 60 00), as of November 2026 a 12% duty applies to third countries, while goods originating in Türkiye get a 0% preferential rate under the UK–Türkiye trade agreement. Import VAT is 20%.

To use the preferential rate, the goods must meet the agreement's rules of origin, and the exporter must make an origin declaration on the invoice or another commercial document. The importer declares that they hold this proof; for imports into the UK the declaration is valid for 24 months. Confirm with your customs broker in the exporting country who may make the declaration and under what conditions. Goods made elsewhere and only packed in Türkiye may not count as originating there.

• EORI: businesses bringing goods into Great Britain usually act under a GB EORI number. A business not established in the UK cannot always apply; in that case it appoints a representative for customs, and the representative holds the EORI.
• VAT registration: for VAT registration and filing duties of an overseas seller holding stock in the UK, see our UK VAT page.

Export paperwork in Türkiye: ETGB and VAT refunds

Small commercial shipments sent from Türkiye by post or express courier can be exported with an electronic commerce customs declaration, known locally as ETGB. The authorized express carrier files it on behalf of the sender and recipient. This route, often called micro-export, costs less than a full customs declaration. Other countries have their own simplified export procedures; check with your carrier.

• Limits: under a Ministry of Trade communiqué of January 3, 2026, 600 kg gross weight and EUR 30,000 in value per shipment (previously 300 kg and EUR 15,000). Shipments above these limits, or bulk shipments, use a standard export declaration.
• VAT refunds: export deliveries are exempt from Turkish VAT. Closed ETGB declarations can be used as supporting documents in VAT refund lists on the tax authority's online portal. ETGBs filed under certain exemption codes cannot be used for refunds; check which code your carrier used and plan refunds with your accountant.
• Consistency: the product description, tariff code and value on the invoice must match the export declaration and the import entry at destination. Mismatches cause problems with both the refund and destination customs.
• Our separate guide on Turkish e-export incentives explains which documents support applications require.

Checklist before you ship

This guide provides general information; it is not customs, tax or legal advice. Tariff rates and rules change often. For classification, valuation and entry decisions, consult a licensed customs broker.

• Have you identified the product's US HTS code and UK commodity code? Did you check the general rate and any additional duties on the shipping date?
• Will shipments go DDP or DAP? If DDP, are duty and fees built into your price?
• For FBA shipments, who is the importer of record, and is the bond in place? Are you sure Amazon is not listed as the importer?
• Is the country of origin marked on the product or its packaging?
• For bulk imports into the UK, are the EORI, VAT registration and origin declaration ready?
• On the export side, will you use a simplified declaration or a standard one? Is your paperwork in order for the VAT refund?