Follow

Who pays for the duties or taxes that may be applicable at the destination country?

Created:   |   Updated:

International shipments are subject to customs duties - taxes imposed on goods when transported across international borders. Customs duties protect each country's economy, residents, jobs, environment, etc., by controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

Customs duties are assessed on the declared value of the goods shipped. To avoid excessive taxes, be sure that your customs forms indicate accurate values.

Each carrier provides different options for customs duties payment. We provide details about the following carriers:

FedEx:

FedEx gives you have the option to bill the customs duties to the sender (you) or the recipient (your customer) if they have a valid 5-digit US zip code connected to their account. International accounts cannot be billed. While it's not necessary for the recipient to have an account number, it should be provided if known.

NOTE: Fedex policies state that should the Recipient or Third Party fail to pay duties and taxes, the sender is responsible for payment.
You can set the payment option as a Default Duties Payor under the "Manage Account" Settings on the POSTAGE & CARRIERS page. You can also select or change who pays per shipment on the READY TO SHIP page. Learn how to choose which party pays for FedEx customs duties.

UPS:

When creating an international UPS shipment, you can select which party pays the customs duties/taxes: Recipient, Sender, or Third Party.
Recipient

This is the default and when chosen as the payor of customs duties/taxes, there are optional fields for a UPS account number and the account number’s postal code. If provided, that account will be billed instead of the recipient paying in cash.

Sender

You are responsible for paying customs duties/taxes.

Third Party

When chosen, then the UPS account number and postal code must be specified, they are not optional for third party payment.

NOTE: When modifying a batch of UPS international shipments, only two options are available for payment of customs duties/taxes: Sender and Recipient.

You can set the payment option as a Default Duties Payor under the "Manage Account" Settings on the POSTAGE & CARRIERS page. You can also select or change who pays per shipment on the READY TO SHIP page. Learn how to choose who is billed for duties on UPS international shipments.

USPS:

USPS makes the recipient responsible for customs duties and taxes. 

According to the USPS website:

"Post Office facilities must collect a Postal Service fee from the addressee for each item on which customs duty or Internal Revenue tax is collected. The Postal Service fee is authorized by international postal agreements to reimburse the Postal Service for costs it incurs clearing items through customs and collecting customs duties at the time of delivery."

DHL:

When creating an international DHL shipment, you can select which party pays the customs duties/taxes: Recipient, Sender, or Third Party.

Recipient

This is the default and when chosen as the payor of customs duties/taxes, there are optional fields for a DHL account number and the account number’s postal code. If provided, that account will be billed instead of the recipient paying in cash.

Sender

You are responsible for paying customs duties/taxes.

Third Party

When chosen, the DHL Default Duties Payor Account Number must be included.

You can set the payment option as a Default Duties Payor under the "Manage Account" Settings on the POSTAGE & CARRIERS page. You can also select or change who pays per shipment on the READY TO SHIP page. Learn how to choose who pays the customs duties on a DHL Express shipment.

 


Related articles:

How to: Bill postage or customs duties (taxes) to a third party
What is a Customs Form?
How to: Set up International Shipments settings
Overview: Customs Information on the READY TO SHIP page
FAQs: Certificate of Origin


Comments

Please sign in to leave a comment.

  • Avatar
    GT USA

    If we are electing to pay for Duties/Taxes as the Sender, don't you need an "Importer of Record" on file along with the VAT number for the registered company?

  • Avatar
    Rewa W. [ShippingEasy]

    Hello GT USA!

    Thanks for your reply to our Knowledge Base article.  Upon reviewing your question about needing an "Importer of Record" if the sender elects to pay the duties, this does not appear to apply for orders such as on ShippingEasy.  It looks like this applies to persons Importing Goods Into the United States.  

    I was able to find this phrase on the cbp.gov website that may help:  "When a shipment reaches the United States, the importer of record (i.e., the owner, purchaser, or licensed customs broker designated by the owner, purchaser, or consignee) will file entry documents for the goods with the port director at the goods' port of entry. Imported goods are not legally entered until after the shipment has arrived
    within the port of entry, delivery of the merchandise has been authorized by CBP, and
    estimated duties have been paid. It is the importer of record's responsibility to arrange for
    examination and release of the goods."

    Here is a link to that document: 

    https://www.cbp.gov/sites/default/files/documents/Importing%20into%20the%20U.S.pdf

    I hope that helps, but certainly let me know if you have other questions or info.

    Warm Regards

     

     




Community    browse  

COMMUNITY FORUMS
FEATURE REQUESTS

Questions & Answers

Issues & Bugs

Productivity

Partners

Shipping

Inventory

Marketing