Etsy DDP Requirement for US Orders (July 2026): What Sellers Must Do - title card from WoodCrafts Hub

Etsy DDP Requirement for US Orders (July 2026): What Sellers Must Do

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Last updated: October 2026 · By HunterMa

Since 9 July 2026, the Etsy DDP requirement means that if you ship an order from outside the United States to a US buyer, you must use a DDP (Delivered Duty Paid) shipping method. Your buyer pays all duties and import fees at checkout, not at the door. If you ship without duties prepaid, the order loses Etsy Purchase Protection, and you can be made to refund the buyer, including any duties they paid.

This guide explains what Etsy’s rules say, who they cover, the narrow exception, and a step-by-step checklist.

What the Etsy DDP requirement says

Etsy sets the rule out in three places.

  • Shipping Policy, section 1E (effective 9 July 2026): “For orders shipped to the United States, use a Delivery Duty Paid (DDP) shipping method so that buyers are not charged import duties, taxes or other fees after purchase.”
  • Seller Policy: sellers must “ensure that any orders shipped to the United States are sent using a Delivery Duty Paid (DDP) shipping method”, and must not use DDU (Delivery Duty Unpaid) shipping or take any other action that would leave buyers paying extra fees after purchase.
  • Etsy Purchase Protection: Etsy’s Help Center now lists “Duties and import fees are included upfront if the order is shipping into the US” as one of the conditions an order must meet to qualify.

Etsy announced the change in its Seller Handbook (9 June 2026) and on its Community forum. The announcement says that if buyers are charged tariffs or collection fees by the carrier, “they’re eligible to be refunded and the charges will be deducted from the seller.”

DDP and DDU in plain English

  • DDP (Delivered Duty Paid): you prepay the US import duty, taxes and carrier import fees when you buy the label. The buyer pays nothing on delivery.
  • DDU (Delivered Duty Unpaid), close to what is now usually called DAP (Delivered at Place): the carrier collects duty and its own handling or brokerage fee from the buyer on delivery.

Why Etsy made the change

In June 2026, US Customs and Border Protection (CBP) published two rules that indefinitely suspend duty-free “de minimis” treatment for low-value parcels, one for mail and one for couriers and other modes. So most handmade parcels sent to the US now owe duty. Etsy says surprise fees lead to customs delays, refused deliveries and refunds. It also cites its own survey of 833 US buyers (July 2025): nearly two-thirds said they would be unlikely to buy if they had to pay tariffs on delivery.

Does the DDP requirement apply to you?

The Seller Handbook puts it simply: “if you ship from outside the United States to a US buyer, you must use delivery duties paid (DDP).” Shop names below are made up.

Your situation Does it apply? What to do
UK candle maker (fictional “Fernhollow Candles”) shipping to Ohio Yes Use a DDP service. Etsy sells Royal Mail International Tracked DDP labels to UK sellers.
Canadian woodworker shipping to the US Yes Etsy’s Help page still says it suspended Canada Post label sales on Etsy for US-bound parcels (from 25 August 2025). Etsy’s Canada list includes Chit Chats, ShipStation and Canada Post itself; Etsy notes Chit Chats can pursue USMCA exemptions.
EU or Asian jeweller shipping to the US Yes Choose a DDP service from Etsy’s carrier table for your country.
US seller shipping from inside the US to US buyers No It is a domestic sale, with no import and no duty.
US shop whose print or production partner ships from abroad Probably The Handbook focuses on where the order ships from. Treat these orders as covered, and ask your partner whether they ship DDP.
Digital downloads only No According to the Handbook, tariffs apply to physical items only.

What happens if you ship without DDP

Etsy enforces the rule through Purchase Protection and refunds. For eligible orders, Etsy normally covers up to $250 of a refund. Without DDP, you lose that cover, and:

  1. Lost or late orders become your cost. The Handbook says that if you ship DDU to a US buyer and the order arrives late or never arrives, “you may be responsible for the refund if the buyer opens a case.”
  2. Duties can come out of your account. Under the Seller Policy, a refund can include customs duties or import fees the buyer paid because you did not use DDP. Etsy can refund the buyer and recoup the money from your account, including your payment account reserve.

Pitfall: some Etsy Help and Handbook text still contains older lines saying buyers pay import charges, or that sellers aren’t responsible when a buyer refuses to pay tariffs. For US orders, the Shipping Policy and Seller Policy now say otherwise, so don’t build your shop policies on the older wording.

The exception when DDP is not available

The Shipping Policy allows “limited exceptions” in “rare circumstances where a DDP option is genuinely not available,” at Etsy’s sole discretion. The Handbook says exceptions apply only in countries where DDP services are not available. If that is your situation, do all of the following:

  • State in your listing that US duties are not included in your price and will be due on delivery.
  • Before you ship, message the buyer through Etsy Messages with an accurate estimate of the duty and the carrier fee.
  • Get their explicit agreement in Messages and keep it. If a case is opened, this conversation is your proof.

If your country appears in Etsy’s DDP carrier table, assume the exception will be hard to rely on. That is our reading, not an Etsy statement.

Here is a message you can adapt:

Hi [name], thank you for your order! A duties-prepaid (DDP) shipping service is not available from [country] for this parcel, so US import duty and a carrier fee will be charged to you on delivery. My estimate is about $[duty] in duty plus $[fee] in carrier fees, around $[total] in all. Please reply “I agree” if you’re happy for me to ship on this basis. If you’d rather not, I can cancel the order with a full refund.

How to comply: step by step

1. Check your shipping profiles

In Shop Manager, go to Settings > Shipping settings and confirm that your “ships from” location is correct. Then pick a carrier that offers DDP for the United States.

2. Buy a DDP service, not just a DDP carrier

Etsy’s international shipping Help page lists “commonly used DDP carriers” and shipping partners by country, but not every service a listed carrier sells is DDP. On Etsy’s Royal Mail labels, for example, only “International Tracked DDP” is the DDP option. Before you buy, check that the service you have chosen says duties paid or DDP.

3. Get the customs data right

Etsy says US shipments need a 10-digit HTS code. You also need the country of origin (where the item was made) and an accurate value. When you buy a label on Etsy, the declared value is pre-filled from the item price, excluding shipping and tax. You remain responsible for everything on the customs form.

4. Estimate duty and fees

Etsy has a US estimated tariffs calculator in the listing form, powered by Zonos. Etsy’s Help page says it does not include carrier fees such as brokerage, and that it isn’t available for listings with price variations. To see the full landed cost and the price that keeps your margin after duty, carrier fees and Etsy fees, use our free US tariff and DDP price calculator.

5. Set US-specific prices

Sellers outside the US can set separate prices for domestic buyers, US buyers and everyone else: open a listing, then Price and inventory > Add global prices. You can bulk-edit up to 500 listings at a time on Etsy.com. Etsy recommends US-specific item prices, which let you keep shipping costs low (its data says that can help sales). Etsy’s fees then apply to the higher price, too. Our Etsy vs Amazon Handmade vs TikTok Shop fee calculator shows what you keep.

6. Tell buyers, keep records, recheck

The Handbook suggests adding a note to your listings, for example “US prices include import duties and fees: nothing extra to pay on delivery.” Keep your label receipts and a record of the duty you prepaid. US tariff rules have changed several times since 2025, so recheck rates and your carrier’s fees each month.

DDP compliance checklist

Check Where Done?
“Ships from” location is correct Shop Manager > Settings > Shipping settings ☐
The US service is DDP (not only the carrier) Carrier or label service name ☐
10-digit HTS code, origin and value are correct Customs form / label purchase ☐
Duty and carrier fees are estimated Etsy estimator plus our calculator ☐
US-specific prices are set Listing > Price and inventory ☐
Shop policies no longer say “buyer pays customs” for the US Shop policies / FAQ ☐
Exception only: listing note, estimate and buyer agreement saved Listing + Messages ☐

If you also sell to the EU, different rules apply there. Our GPSR checker covers EU product-safety requirements.

FAQ

Is DDP mandatory on Etsy for US orders?
Yes, if you ship from outside the US. Etsy’s Shipping Policy and Seller Policy require a DDP method for orders shipped to the United States, effective 9 July 2026. The only exception is the narrow one for cases where DDP is genuinely unavailable.

What happens if my US buyer refuses the parcel because of customs fees?
If the charges arose because you did not ship DDP, expect to refund the buyer. Under the Seller Policy, that refund can include shipping and the duties or fees they paid, and Etsy can recoup the money from your account. The order also won’t be covered by Purchase Protection.

Can I just say in my shop policies that buyers pay customs?
Not for the US. A note in your shop policies does not replace DDP. Etsy’s exception requires DDP to be genuinely unavailable, a listing statement, and the buyer’s agreement in Messages before you ship.

Does Etsy collect US tariffs for me, like it does with VAT?
No. Etsy’s Handbook says the US does not currently have a process that lets intermediaries like Etsy collect and remit tariffs. You prepay them through a DDP carrier or shipping partner.

Which shipping labels count as DDP?
Any service where you prepay US duties and import fees, so the buyer pays nothing on delivery. Use Etsy’s country list of DDP carriers and partners, and check that the specific service is DDP.

Sources

This article is for general information only and is not legal, tax or customs advice. See our Disclaimer.

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