What you need to know
FedEx has updated their policy regarding the rebilling of unpaid import duties, taxes, and customs-related fees to the sender.
If you ship using DDU term (Duty and Tax Billed to Receiver) with FedEx, it’s important to understand how this change may affect you.
How FedEx handles DDU shipments?
Traditionally, DDU shipments mean that the receiver is liable for the import duties and taxes, and the carrier would collect payment before delivering the shipment.
However, under FedEx’s terms, in the event that FedEx doesn’t require confirmation of duty and tax reimbursement arrangements from the receiver, FedEx may deliver the shipment first, then collect the duties, taxes, or other customs-related charges later.
Why does FedEx do this?
As an express carrier, FedEx primarily aims for fast delivery.
By advancing duties and taxes to customs authorities on behalf of the importer and proceeding with delivery even before collecting payment, FedEx reduces customs-related delays, prevents shipments from being held unnecessarily, and supports faster delivery times.
This approach is what’s best aligned to get the packages delivered on time, especially with the added complexities after the Removal of the United States De Minimis, especially towards the European Union Customs Reform where the sellers or their logistics partners (not the buyers or receivers) become the effective importers of record (IOR) and customs debtor.
What’s changed?
Sender’s ultimate liability for the unpaid duties/taxes has been made non-disputable.
According to the latest FedEx’s Standard Conditions of Carriage:
REGARDLESS OF ANY PAYMENT INSTRUCTIONS TO THE CONTRARY, THE SENDER IS ULTIMATELY RESPONSIBLE FOR PAYMENT OF DUTIES AND TAXES AND ALL FEES AND SURCHARGES RELATED TO OUR DISBURSEMENT OF DUTIES AND TAXES IF PAYMENT IS NOT RECEIVED.
NOTWITHSTANDING ANY PAYMENT INSTRUCTIONS THAT ARE GIVEN TO FEDEX, THE SENDER IS ALWAYS ULTIMATELY LIABLE FOR, and agrees to pay, ALL CHARGES AND FEES, including any special handling fees and any duties or taxes which we have disbursed, REGARDLESS OF ANY PAYMENT INSTRUCTIONS TO THE CONTRARY, if the recipient or third party fails or refused to pay.
What does these mean?
In practice, these mean when a DDU shipment is dutiable or taxable:
FedEx may clear the shipments from customs and advances the duty payment.
FedEx may deliver the shipment before collecting payment from the receiver.
FedEx may invoice the receiver after delivery.
If the receiver does not pay by the given due date, FedEx will rebill these charges back to the sender, and the sender must pay.
Are all shipments affected?
No. Shipments valued below the destination country's de minimis threshold are not affected, as no import duties or taxes are assessed.
For example: Shipments valued below AUD 1,000 to Australia do not incur import duties and taxes, so nothing is owed.
ⓘ Learn more about the De Minimis Value →
Our recommendations
Before shipping DDU with FedEx, consider:
Checking whether your shipment is above or below the destination country’s de minimis value.
Informing your customer about potential duties and taxes before shipment.
Obtaining confirmation that the receiver agrees to pay any import charges.
If your shipment is above the destination country’s de minimis value, we strongly recommend you to ship using DDP term (Duty and Tax Billed to Sender).
DDP provides a better delivery experience and eliminates the risk of the receiver refusing or failing to pay import duties and taxes.
ⓘ Learn more about DDP (Duty and Tax Billed to Sender) →
How UrShipper handles the rebilled duties and taxes
UrShipper does not determine, and has no control over, how FedEx collects import duties, taxes, or related fees. These procedures are governed by FedEx’s Standard Conditions of Carriage and have been made non-disputable by FedEx.
If FedEx rebills unpaid duties, taxes, disbursement fees, clearance fees, or other import-related charges to UrShipper, those charges will be passed through to the original sender for reimbursement, following UrShipper’s Terms & Conditions.
⚠️ Important Note
By booking a FedEx shipment through UrShipper, you acknowledge and agree to reimburse UrShipper for the unpaid duties, taxes, and related import charges rebilled by FedEx. UrShipper cannot waive or dispute these charges.
If you do not wish to accept this liability, please select other available carrier services that fit your business needs when creating shipping labels on the UrShipper platform. FedEx shipments processed through UrShipper will automatically be subject to these terms.