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Beginning July 10, 2006 there are a few changes for customers using UPS Internet Shipping, CampusShip and XML tools on the web. UPS is introducing an easier-to-use method for international shippers to select who is responsible for payment of shipping charges and who is responsible for payment of duty/taxes on international shipments. Shippers will be able to easily indicate whether the shipper, the receiver or a third-party are to pay charges, without having to understand traditional industry terminology (e.g. Free Domicile, FOB, C&F, etc.).
At the same time, we are making an adjustment to the UPS process used for billing international shipments to a third party. This adjustment could result in a change to the rates that you are accustomed to paying for international shipments billed to a third party.
How International Shipments Are Rated
UPS maintains separate rate charts for exports and for imports in most countries we serve. This allows shippers (paying export rates) and receivers (paying import rates) to expect charges in their local currency without concern for fluctuating exchange rates.
Effective July 10, 2006, third-party payers, who may be in the origin country, destination country or a third country, will now be assigned export or import rates as follows:
- If the third-party payer is located in the same country as the shipment origin, the third party will pay export rates.
- If the third-party payer is located in the same country as the shipment destination, the third party will pay import rates.
- If the third-party payer is in a third country (neither origin nor destination), the third party will pay export rates.
Please see ups.com for the most current export and import rates.
Duty and Tax Forwarding Charge
The UPS "Free Domicile" fee is being renamed the "Duty and Tax Forwarding Surcharge." This charge will apply when duties and taxes are charged to the shipper or a third party not located in the destination country. The fee covers the costs associated with invoicing duties and taxes outside the destination country.
In addition, you will notice slight changes in how your international shipments appear on the UPS invoice.
We believe these changes will simplify the shipping process, eliminate confusion, and overall add clarity and consistency to your experience of shipping with UPS. The changes will be implemented for all other customers beginning January 2007.
If you have questions about these changes, please contact your UPS Account Representative. We appreciate the business you entrust to UPS. |
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