How to Choose Between "Double Customs Clearance with Tax Included" and "Tax Excluded" International Air Freight Services?
As an overseas importer, one of the key decisions you'll face is choosing the right customs clearance option for your air freight services. Specifically, you may need to weigh the pros and cons of "tax-inclusive double customs clearance" versus "tax-exclusive" services. Understanding the nuances of these options is crucial for optimizing your import logistics and ensuring compliance.
Understand the core differences between the two services
1. Double Clearance with Tax Included Service
Double Clearance with Tax-Inclusive Service is what we call DDP, which includes customs declaration at the airport of origin and customs clearance at the airport of destination, and covers customs duties, value-added tax, and other taxes. The freight forwarder provides you with a comprehensive quote that includes the air freight cost, origin handling, export formalities, destination port charges, import customs clearance, and all estimated duties and taxes, and handles the entire customs clearance and tax payment process.
The recipient does not need to participate in customs clearance. After the goods arrive, the freight forwarder directly arranges delivery, and no additional payment is required upon receipt (unless otherwise agreed).
Suitable Scenarios: Individuals, small businesses, or those unfamiliar with the destination airport's customs clearance rules; low-value goods, sensitive categories (such as general cargo, e-commerce shipments), and concerns about customs delays or taxation.
2. Tax-Exclusive Service
This service, commonly known as DDU, only includes customs declaration at the airport of origin and air freight. The freight forwarder handles the physical movement and provides the necessary shipping documents (like the Air Waybill and Commercial Invoice). However, upon arrival, the goods are held by customs. You or your designated customs broker will use the provided documents to file the customs declaration and pay the calculated duties and taxes directly to the authorities to secure the release of your cargo.
Suitable Scenarios: Companies with professional customs clearance teams and familiarity with destination port customs policies; companies with high-value or special-category goods (such as industrial equipment or precision instruments) that need to control the customs clearance process themselves.
Further reading:
Factors to consider when choosing between the two options
1. Cost Impact
One of the most important factors to consider is the total cost.
Double clearance including tax (DDP): While this option may have higher upfront costs, it provides peace of mind. You will know the final payment amount clearly, and there will be no unexpected charges upon arrival of the goods. This is especially beneficial for budgeting and financial planning.
Tax-Exclusive Service (DDU): This option may seem cheaper at first glance, but it could lead to unexpected costs. Customs duties and VAT need to be calculated separately, and customs clearance fees may apply. It's suitable for those who can accurately calculate taxes and want to reduce costs; proper declaration can save money.
2. Customs Clearance Capability
DDP: If you or the recipient lack customs clearance experience and local clearance channels, choosing a customs clearance and tax-inclusive service avoids goods being detained or fined due to a lack of understanding of regulations.
DDU: If you have an experienced customs clearance team and understand the destination port's tariff rates and declaration requirements, choosing a tax-exclusive service allows you to optimize your declaration methods and reduce tax costs.
3. Nature and Value of Your Shipment
DDP: High-volume, consistent product lines where duty rates are stable and predictable. Essential for time-sensitive products where delays are not an option.
DDU: For goods that are compliant general cargo, with simple customs clearance procedures at the destination, or goods with high value requiring standardized declaration. Choosing the "excluding tax" option may reduce the likelihood of customs inspection, while "including tax" usually means that the tax is declared uniformly, which may be subject to customs inspection, thus causing delays.
Important Notice:
For "Double Clearance with Tax Included" services, confirm whether the freight forwarder has the necessary customs clearance qualifications at the destination port to avoid low-price traps (some freight forwarders may cause cargo delays due to insufficient clearance capabilities).
For "Tax Exclusive" services, verify the destination port's customs duty rates and required clearance documents in advance to avoid delays due to incomplete documents or insufficient tax estimates.
For high-value goods, "Double Clearance with Tax Included" is not recommended. Some freight forwarders may underreport the declared value to control costs, which may lead to customs penalties later.
For DDP inquiries from clients, Senghor Logistics usually specifies in advance whether our company has the customs clearance qualifications for the destination. If so, we can typically provide prices including and excluding tax for your reference and comparison. Our prices are transparent and will not be excessively high or low. Whether you choose DDP or DDU, we believe that the expertise of a freight forwarder is crucial. Please feel free to ask us questions about our experience in your destination country, we will do our best to answer them for you.
Post time: Nov-21-2025
