Duties you paid but didn't collect: DDP, DAP and import fees on Shopify

Key takeaways

• Under DDP you pay import duties and taxes. Under DAP (formerly DDU) the customer pays on delivery, unless they refuse, and then it usually comes back to you.
• FedEx bills the original shipper when a recipient refuses the duties. UPS reverses unpaid import invoices to the shipper with a $24.00 chargeback fee. DHL Express returns refused shipments at the shipper's cost.
• Shopify can collect duties and import taxes at checkout on every plan since February 2025. It needs HS codes, doesn't work in the Rest of world zone, and doesn't include carrier fees.
• In 2026, carriers charge about 2–2.5% of the duties with a minimum of roughly $17 to pay them on your behalf.
• The US suspended duty-free de minimis for all countries on August 29, 2025, and it's still suspended. The EU added a €3 duty per item on parcels up to €150 from July 1, 2026.

DDP vs DAP: who pays duties and import taxes?

DDP and DAP are Incoterms rules; Incoterms 2020 is the current edition. Shopify notes that with DAP, some carriers add their own fee for collecting import costs from the customer, which is one reason customers refuse.

Why merchants end up paying duties they didn't collect

1. Shipping DDP without collecting. You buy a duties-paid label, or bill duties to your own account, for a market where checkout doesn't charge duties.
2. Refused DAP shipments. FedEx says that if the recipient refuses the package or the duties, “the original shipper will be billed for duties and taxes.” UPS reverses unpaid US import invoices to the shipper after collections, charges a $24.00 chargeback fee, and bills return costs plus $10.00 per undeliverable international shipment. DHL Express returns refused shipments at the shipper's cost and can bill the shipper for duties the consignee didn't pay.
3. Wrong or missing customs data. Without an HS code, Shopify estimates duties from the product description and category. A wrong code or missing country of origin can mean the carrier bills more than checkout collected; with DDP labels bought in Shopify, the difference shows on your Shopify bill as a “Duties adjustment.”
4. Carrier fees checkout doesn't include. Shopify says brokerage, handling and disbursement fees aren't part of the duties it calculates at checkout.
5. Returns. FedEx notes that duties and taxes are still owed on applicable packages even if the order is returned.
6. Refunds after fulfillment. If you refund duties on an order that already shipped, the carrier doesn't refund what you paid for the DDP label.

Findings›Duties paid, not collected

OrderShip toTermsCollectedBilledFeesGap

#4765Toronto, ONDAP · refused$0.00$41.20$24.00−$65.20

#4752Berlin, DEDDP · DHL$12.40$12.40$17.00−$17.00

#4799Leeds, UKDDP · not collected$0.00$7.85—−$7.85

#4741Sydney, AUDDP$18.90$18.90—$0.00

What carriers charge to pay duties for you

When a carrier pays duties and taxes on someone's behalf, it charges a fee: called a disbursement, advancement or duty tax paid fee. These are the 2026 rates.

From UPS's shipping costs page and 2026 rate guide, FedEx's customs clearance surcharge notice (July 2026), and DHL Express optional services. Account-specific rates may differ.

On a $20 duty, a 2.5% fee with a $17.50 minimum is $17.50, almost as much as the duty. Small international orders feel this most.

Low-value import rules in 2026, by destination

The practical change: more low-value orders now owe something at the border, so more DAP parcels arrive with a bill the customer didn't expect, and more get refused.

How to collect duties and import taxes at Shopify checkout

1. Add customs data to products. Give every product an HS code and a country of origin. Shopify's calculation depends on both.
2. Turn it on. Go to Settings › Taxes and duties › Duties and import taxes, for the store or per market. It's been available on all plans since February 2, 2025, and Shopify Payments isn't required. Shopify charges a percentage fee on the duties it calculates, even when the duty is $0; check the current rate in your admin.
3. Move countries out of Rest of world. Duties can't be collected in the Rest of world shipping zone. Give the countries you sell to their own zones.
4. Ship on DDP labels. In Shopify Shipping, duties-paid labels are available with DHL Express, DHL Express Canada, and Canada Post for US destinations (Canada Post shipments to the US have had to be DDP since late August 2025). With other carriers, Shopify won't sell a label for an order where duties were collected, so buy it elsewhere or refund the duties. Don't ship those orders on a standard label: the customer can be charged twice.
5. Cover the carrier fee. Since disbursement fees aren't in the duty amount, build them into your international shipping rates or handling fee.

You can't offer DDP and DAP in the same country, and tax overrides and customer exemptions don't apply to duties. If you use Shopify Managed Markets, Global-e is the merchant of record and guarantees duties; Managed Markets moved all its markets to DDP on August 24, 2026. Shopify also says it collects the new EU €3 duty automatically from July 1, 2026.

How to find duties you paid but didn't collect

1. Pull the duty lines. From carrier invoices, take every duty, tax, disbursement, chargeback and return line. From your Shopify bill, take any “Duties adjustment.”
2. Match them to orders by tracking number.
3. Check what checkout collected. Orders with duties collected show a duties amount on the order. Compare it with what you were billed, including fees.
4. Group the gaps by market. A market where every order has a gap usually means duties aren't turned on there. Scattered gaps usually mean HS codes, fees or refusals.

Doing it with Shopvibe

Disclosure: Shopvibe is our app. You can follow every step above without it.

Shopvibe reads the carrier invoices and 3PL bills you upload as CSV, PDF or a photo, matches duty and fee lines to the orders they belong to, and shows every international order where you paid duties and import taxes that checkout didn't charge. Its setup checks flag markets where duties aren't collected. Shopvibe only reads; it never changes your store. See plans, or read how it handles shipping undercharges generally.

Frequently asked questions

What is the difference between DDP and DAP?

Under DDP (Delivered Duty Paid), the seller pays import duties and taxes and handles customs. Under DAP (Delivered at Place, formerly called DDU), the buyer pays duties and taxes when the package arrives, usually to the carrier.

Who pays duties if a customer refuses a DAP package?

Usually the merchant. FedEx bills the original shipper when the recipient refuses the package or the duties. UPS reverses an unpaid import invoice back to the shipper and charges a $24.00 chargeback fee. DHL Express returns refused shipments at the shipper's cost.

Can Shopify collect duties at checkout?

Yes. Since February 2025 duty and import tax collection is available on all Shopify plans, and Shopify Payments isn't required. Products need HS codes, and country of origin should be set. It can't be used in the Rest of world zone, and it doesn't include carrier brokerage or disbursement fees.

Do Shopify's duty amounts include carrier disbursement fees?

No. Shopify says brokerage, handling and disbursement fees aren't included in the duties charged at checkout. In 2026 UPS charges 2.5% of duties and taxes with a $17.50 minimum, FedEx charges 2.5% or $17.50 in the US, and DHL Express charges $17.00 or 2% for duty tax paid shipments.

Is the US de minimis exemption still suspended in 2026?

Yes. Duty-free de minimis treatment has been suspended for all countries since August 29, 2025, and CBP rules issued in June 2026 continue the suspension for both non-postal and postal shipments. Low-value imports into the US pay duties.

What is the new EU €3 customs duty?

From July 1, 2026 until July 1, 2028, the EU charges a flat €3 duty per item, by tariff classification, on low-value consignments up to €150 in distance sales. It replaces the previous duty exemption for those parcels. Shopify says it collects the €3 duty automatically from July 1, 2026.

Can I use a standard label after collecting duties at checkout?

You shouldn't. If duties were collected at checkout and the package ships on a standard (DAP) label, the customer can be charged again on delivery. Use a carrier that supports DDP labels, or refund the duties.

Sources

Checked on October 22, 2026. Import rules changed several times in 2025 and 2026; confirm current rules with the destination's customs authority before you rely on them.

1. Shopify Help Center, Charging duties and import taxes.
2. Shopify Help Center, Considerations for duties and import taxes.
3. Shopify Help Center, Carriers and shipping terms.
4. Shopify Help Center, Additional tasks for duties.
5. Shopify Help Center, Buying DDP and DDU labels.
6. Shopify Help Center, Managed Markets overview.
7. Shopify Changelog, Duty calculator now available for all Shopify plans, February 5, 2025.
8. Shopify Changelog, New €3 EU import customs duty arrives July 1, June 26, 2026.
9. Shopify Changelog, Managed Markets is ending DDU support, August 11, 2026.
10. FedEx, Duties and taxes and customs clearance surcharge, July 2026.
11. UPS, Import fees, shipping costs and rates, and the 2026 Daily Rates guide.
12. DHL Express, Optional services and terms and conditions.
13. Federal Register, Suspending duty-free de minimis treatment for all countries, August 5, 2025.
14. U.S. Customs and Border Protection, E-commerce FAQs, modified September 2, 2026.
15. European Commission, Temporary flat fee on low-value imports, updated July 20, 2026.
16. GOV.UK, VAT and overseas goods sold directly to customers in the UK.
17. Canada Border Services Agency, Low-value shipments, modified November 25, 2025.
18. Australian Taxation Office, GST on low-value imported goods.