Service#ImportantNotice#Important
**Important Notice:**
**UPS/FedEx/DHL Customs Duty Payment Policies**
UPS/FedEx/DHL and other courier companies operate on a **"Deliver First, Settle Later"** model. This means customs duty and miscellaneous fee invoices will only be issued to the recipient **after delivery is completed**, applicable to all countries.
**Key Risks:**
1. **Recipient Payment Default Risks**
- Even if "recipient pays duties" is selected, **all fees will revert to the shipper** if the recipient:
✓ Refuses payment
✓ Cannot be contacted
✓ Delays payment intentionally
- **No time limit for debt collection**: Fees may be retroactively charged months or even years later.
- **No disputes allowed**: No appeals or objections to payment demands will be accepted.
2. **Payment Timing Risks**
- Bills may be generated **after delivery**, causing delays.
- Recipient’s failure to pay promptly will result in fees reverting to the shipper.
**Final settlement is strictly based on the invoice.** To oid risks, **clearly agree upfront with both shippers and recipients on duty responsibility and payment methods**.
**Risk Mitigation Recommendations:**
1. **Preventive Measures**
✓ **Legally binding agreements**: Define duty obligations and penalties for default in writing.
✓ **Prepaid duty services (DDP terms)**: Pay duties upfront (asseost impact).
✓ **Purchase insurance**: Cover recipient non-payment risks.
✓ **Prepaid channels for high-value goods**: Prioritize duty-prepaid options.
2. **Operational Guidelines**
- **Label waybills clearly**: Mark "DDP" (Delivered Duty Paid) or "DDU" (Delivered Duty Unpaid).
- **Verify recipient details**: Ensure 100% accuracy of contact information.
- **Document retention**: Keep full customs records and communication logs.
- **Security deposits**: Require duty deposits from new clients.
3. **Post-Delivery Management**
▶ **Track customs status**: Proactively monitor post-delivery clearance.
▶ **Financial reserves**: Allocate 3-5% of cargo value as risk contingency.
▶ **Regular audits**: Review historical orders for unpaid fees.
**Special Reminders:**
- Tariff policies vary widely by country (e.g., EU abolished tax exemptions for low-value goods).
- Build a **global tariff database** and enforce stricter prepaid policies for high-risk regions (e.g., Brazil, Argentina, Turkey).
**Institutionalize This Policy:**
1. Create a bilingual **Tariff Risk Acknowledgment Form** for client signatures.
2. Add **mandatory confirmation pop-ups** in shipping systems.
3. Establish dedicated accounting codes for duty-related transactions.
**Systematic risk management can reduce 90% of duty disputes.** Pay extra attention to cross-border e-commerce retail orders, which are most prone to payment conflicts.
Thank you for your understanding and cooperation!
Author
Login/Regsiter