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Duties and Taxes on the Checkout Page

Global-e calculates the duties and taxes due for each relevant order. If there is an option to pay them in advance, it displays them to the customer on the checkout page. Paying in advance guarantees no additional costs on delivery.

The option of charging the D&T depends on the Merchant.

  • DDP (Delivered Duty Paid) - Import D&T is handled, guaranteed, and paid at the point of sale (i.e. checkout). No additional charges apply to the customer on receiving the parcel.

  • DDU (Delivered Duty Unpaid) - Import D&T is not paid for before arriving in the destination country. It is paid by the customer when the products arrive at the destination.

  • Hidden Force DDP (HFDDP) - A method in which the D&T is hidden in the product price. The Merchant can uplift the product prices using the Country Price Coefficient to cover the D&T, taking into consideration the Country threshold and D&T Rates. From the buyer's point of view, the product price includes D&T – so it is a DDP order.

  • Partial Force DDP (PFDDP) - Either the duties or taxes are included in the total price displayed on the checkout page.

The shipper is notified if the parcel is DDP or DDU, as an indication of who should be charged.

In the reconciliation between Global-e and the Merchant, the D&T charges are applied to the Merchant.

Hidden Force DDP

A Hidden Force DDP means that the duties and taxes (D&T) are hidden in the product price.

From the buyer's point of view, the product price includes D&T, making it a DDP order.

billing_summary.png

In the above example, the $1,049.00 subtotal is the price the international shopper sees on the Merchant’s site before checkout.

Merchants can uplift the product price using the Country Price Coefficient to cover for the D&T (taking into consideration Country threshold and D&T Rates).

In the reconciliation between Global-e and the Merchant, the D&T is charged to the Merchant.

Partial Hidden Force DDP

In a Partial Hidden Force DDP (Partial HFDDP) either the duties are hidden in the product price and the taxes are added in the checkout -OR-

The taxes are hidden in the product price and the duties are added in the checkout.

When a Merchant uplifts the product price (by using the Country Price Coefficient), they should consider the rate of the hidden component.

Example of hidden tax:

Hidden_tax_example.png

Example of hidden duty:

Hidden_duty_example.png