📋 UPS / FedEx Duties & Taxes Notice
Important Information for Shippers - Liability for Unpaid Charges
⚠️ IMPORTANT NOTICE
If the receiver refuses to pay duties or taxes, the shipper remains fully responsible for all charges.
📖 What This Means for You
When shipping internationally with UPS or FedEx, the consignee (receiver) may be required to pay import duties, taxes, and other customs charges upon arrival. These charges are determined by the destination country's customs authorities and are based on the declared value and classification of the goods.
💰 Import Duties
Government tariffs based on
HS code & declared value
🧾 VAT / GST
Value-added tax charged by
destination country
📄 Processing Fees
Customs brokerage and
documentation fees
🚚 Clearance Fees
Port/airport handling and
clearance charges
👥 Who Is Responsible for These Charges?
| Scenario | Who Pays? | Risk? |
|---|---|---|
| Receiver accepts delivery & pays | ✓ Receiver | None |
| Receiver refuses to pay | ✗ Shipper | HIGH |
| Receiver abandons package | ✗ Shipper | HIGH |
| Receiver rejects/refuses package | ✗ Shipper | HIGH |
| Package returned to sender | ✗ Shipper | HIGH |
🔑 Key Points to Understand
🚫 Shipper's Liability
• Full responsibility if receiver refuses payment
• May face additional return shipping costs
• Abandoned packages returned at shipper's expense
• Unpaid duties can go to collections
• Future shipments may be held
✅ Best Practices
• Always collect duties upfront (DDP option)
• Confirm receiver's willingness to pay
• Provide accurate customs documentation
• Use prepaid shipments when possible
• Communicate charges to receiver in advance
📋 Shipper Options to Protect Yourself
| Option | Description | Recommendation |
|---|---|---|
| DDP (Delivered Duty Paid) | Shipper pays all duties upfront | ✓ RECOMMENDED |
| Prepaid Shipment | All costs paid by shipper | ✓ Good option |
| DDU (Delivered Duty Unpaid) | Receiver pays upon delivery | ⚠ Use with caution |
| DTP (Duties at Place) | Third party pays duties | Verify third party agreement |
| Third Party Billing | Another party pays charges | Ensure credit arrangement exists |
💡 Tips to Avoid Issues
📢 Communication is Key
Always inform your receiver about potential customs charges BEFORE shipping. Surprise fees are the #1 reason for refused deliveries.
💵 Consider DDP Service
Choose Delivered Duty Paid (DDP) to pay all charges upfront. This eliminates risk of refused delivery and ensures smooth customs clearance.
📦 Accurate Documentation
Provide accurate commercial invoices and HS codes. Incorrect declarations can lead to delays, penalties, and unexpected charges.
📞 Confirm Receipt
Contact your receiver before shipping to confirm they are willing to accept and pay for the shipment.
⚠️ Consequences of Unpaid Duties
If Charges Are Not Paid
- Package may be held by customs or carrier
- Additional storage fees will accrue daily
- Package may be returned to sender (at sender's cost)
- Abandoned packages may be destroyed after holding period
- Shipper account may be suspended or charged
- Future shipments may be blocked until balance is paid
- Collection agencies may be engaged for unpaid balances
❓ Frequently Asked Questions
Q: Can I bill the duties to the receiver instead?
A: The default is that the receiver pays, but if they refuse, the shipper is liable. Choose DDP to pay upfront and avoid this risk.
Q: What happens if the receiver refuses the package?
A: The package will be returned to the sender, and the sender will be responsible for all return shipping costs plus any outstanding duties.
Q: Can I add duties to the invoice for the receiver to pay later?
A: UPS/FedEx require payment at time of delivery. Any separate arrangement between shipper and receiver is a private matter and does not affect carrier liability.
Q: How do I know what duties will be charged?
A: Contact your carrier or customs broker for an estimate. Actual charges are determined by customs upon arrival.
Q: What if the duties are more than expected?
A: The shipper is still responsible for the charges if the receiver refuses. Always communicate potential costs to your receiver in advance.
📝 Summary
Remember
When shipping internationally with UPS or FedEx:
✓ If the receiver refuses to pay duties, YOU (the shipper) are fully responsible for all charges.
✓ This includes original shipping costs, return shipping (if applicable), and any accrued fees.
✓ Always communicate with your receiver before shipping to avoid refused deliveries.
✓ Consider DDP service to pay all charges upfront and eliminate the risk.