Royal Mail DDP to the USA: how duty-paid shipping works
Since the US stopped letting small parcels in duty-free, almost every parcel you send to an American buyer pays import duty. Royal Mail's Delivered Duties Paid service (Royal Mail calls it PDDP) lets you pay that duty up front, so the parcel isn't held and your buyer isn't asked for money at the door. Here is how it works, what it costs, and how to price for it.
How Royal Mail DDP works, step by step
- You enter the customs data when you create the label: a description, the HS code, the country the item was made in, and its value, for every item in the parcel.
- US Customs works out the duty from that data when the parcel arrives and charges it to Royal Mail.
- Royal Mail bills you for the duty plus a handling fee per item, on your account invoice after your end-of-day manifest.
- Your buyer pays nothing on delivery.
The catch is in step 1. Royal Mail charges duty on what you declare. A vague description or a short code means duty on the wrong basis, and if the data is missing or wrong the parcel can be delivered duty-unpaid, so your buyer gets the bill, or sent back to you.
What Royal Mail DDP costs
| Part | Amount | Notes |
|---|---|---|
| Postage | Same as the equivalent non-DDP service | Royal Mail priced its duty-paid services in line with the duty-unpaid ones |
| US duty | Base rate for your code + extra tariff for the country of origin | For UK-made goods the extra Section 301 tariff is 10% on top of the base rate. See the US duty calculator |
| Handling fee | 50p per item (USA) | As listed by Royal Mail; subject to change |
Example: a £32 handmade stoneware mug made in the UK. The US base rate for stoneware mugs (6912.00.4400) is 10% and the Section 301 tariff adds 10%, so the duty is about £6.40. Add the 50p handling fee and this one mug costs you about £6.90 on top of postage.
Limits and rules to know
- $2,500 per package. Royal Mail's US duty-paid service takes packages up to $2,500. Bigger orders need a courier DDP service.
- Use a supported service. Duty-paid parcels have to go through an approved shipping solution (Click & Drop, an integration such as Etsy, or your account). Older US service codes were retired, and parcels on them can be delayed or refused.
- Country of origin means where it was made, not where you post it from. In a mixed parcel, each item is assessed on its own origin.
- Every item needs a value. You can't declare zero, and postage isn't part of the item value.
Royal Mail DDP on Etsy
Since 9 July 2026, Etsy asks sellers outside the US to ship US orders with duties paid up front. If you don't, the order isn't covered by Etsy Purchase Protection. UK sellers who buy labels on Etsy can add the United States to a shipping profile and choose Royal Mail International Tracked DDP (3 to 7 business days). The duty is prepaid when you buy the label, so it comes out of your money, not the buyer's.
What to do: Etsy doesn't let you add duty at checkout, so it has to be inside your US price. If the duty is 20% and Etsy's fees are about 10.5%, a £20 item needs to sell for about £25.76 to leave you the same money as before. DutyTag works this out for every product and variation in your shop.
Get the customs data right once
The four things Royal Mail asks for on every item are the four things that decide your duty:
- Description: what the item is and what it's made of, such as “stoneware coffee mug”, not “gift” or “handmade item”.
- HS code: at least 6 digits for any country, and the full 10-digit US code for American parcels. How to find yours.
- Country of origin: where it was made.
- Value: the price the buyer paid for the item.
Codes, duty and US prices for your whole shop
Upload your Etsy listings file. DutyTag gives every product its 10-digit code and a reason you can read, the duty you'll prepay, and the US price that keeps your margin. It also exports a file for Click & Drop.
Sell on Etsy? Add the free Chrome extension to see the code inside Etsy's listing editor.
Questions sellers ask
What does DDP mean on Royal Mail?
Delivered Duties Paid. Royal Mail pays the US import duty to US Customs for you, then bills it to your account with a small handling fee, so your buyer pays nothing on delivery.
How much is the Royal Mail DDP handling fee for the USA?
Royal Mail lists 50p per item for the USA, on top of the duty itself. Fees can change, so check Royal Mail's PDDP page before you price.
Is there a value limit for Royal Mail DDP to the US?
Yes. Royal Mail's PDDP service to the USA takes packages up to $2,500. Above that you need a courier DDP service.
Do I need the HS code for Royal Mail DDP?
Yes. Royal Mail works out the duty from the customs data you enter, so every item needs a clear description, its HS code, country of origin and value. For US parcels the full 10-digit US code gives the most accurate duty.
Can Etsy sellers buy Royal Mail DDP labels?
UK-based Etsy sellers can choose Royal Mail International Tracked DDP for US orders in their shipping profile and buy the label on Etsy. The duty is prepaid when the label is bought.
Sources
- Royal Mail: Postal Delivered Duties Paid (PDDP)
- Royal Mail: Postal Customs Hub
- Etsy Help: Royal Mail labels and duties paid shipping
- Zenstores: Royal Mail USA PDDP update
This guide explains the rules as we understand them on the date above. It is not legal or customs advice.