With the rise of e-commerce and global retailers, internaktional shipping has become an important component of commerce and the economy. International shipping has risen by over 50% among sellers all over the world, and 33% of the sellers agree that it has boosted sales and helped them develop their business. Yet, there is still some fear among the community about international shipping, because many are not aware of the charges that are levied in case of international shipping. Know more about Hidden Fees To Be Aware Of When Shipping Internationally
International delivery services are done mainly through two ways: express couriers and postal services. The complex nature of international Shipping involves many rules, regulations, and paperwork. The shipper must be prepared to get their items through custom clearance with all the proper documentation. The cost of international delivery depends on the type of shipment, the nature of which determines the added hidden charges. Postal couriers provide affordable pricing with low speed and quality of services. Whereas, Express couriers provide fast and reliable delivery services, and their pricing is more and can include Parcel handling-related charges, Shipping-related charges, and Tax & duty-related charges depending on the type of package.
Shipping Charges
Express couriers have various additional shipping charges which fluctuate based on the pickup location, the delivery destination, and the time of delivery.
- Fuel surcharge – it is the primary additional charge faced with express courier shipping. It is taken as a percentage of the total shipping costs, calculated on a weekly or monthly basis. This can fluctuate highly based on the package destination, adding to your costs.
- Remote area/ Extended area Surcharge – this is charged If the shipping destination is in a location that is not located in the usual routes of express couriers. Additional surcharges for residential buildings may also apply.
- Value-added services – you can also choose option services to make sure your shipment is delivered safely, like additional insurance for lost/damaged shipment, delivery outside regular business hours, etc. for additional charges.
Parcel Handling Charges
This includes charges regarding the physical dimensions and weight of the shipment,
- The shipper is usually charged extra If they are shipping hazardous materials.
- Additional charges are levied if the shipment is greater than the courier’s standard dimensions and/or weight.
- Additional charges may also apply depending on the material and shape of the containers to be delivered.
Taxes And Other Duties
The conditions and amounts of taxes levied depending on the type of shipment and the package destination.
- The recipient has the pay the taxes and duties for “Delivery Duty Unpaid” shipments, which means the sender is not charged extra from the courier.
- The sender is responsible for the payment of taxes and duties if the shipment is marked “Delivery Duty Paid”, and the charges go to the couriers, as they are the ones who pay those fees on your behalf upon arrival of the shipment in the destination country.
Brokerage Fees
It is charged for imported goods by couriers when the shipment is delivered. Fees can be as high as half of the shipment’s cost, depending on the material and the destination country.
How To Avoid Paying Additional Charges
- The sender should have all the required documents and permits in order. Some freight forwarders also offer to store the goods in bonded warehouses which charge fewer storage fees than a port.
- You can employ a customs broker to ensure the proper taxes and duties are being paid for your shipment without any additional late fees.
- Shipments that are LCL (less than container load) are more expensive because the sender is renting a section of the container, requiring more handling and longer delivery times. You should always try to ship goods in bulk, to send them at FCL (full container load).
- Some senders also buy international insurance for their shipments as a safeguard against damages and costs.
Conclusion
If you are looking to ship internationally, then Constant vigilance is the best way to ensure that your profits are not marred by hidden additional charges. Make sure not to under-declare items on your shipments in the commercial invoice, to avoid additional customs clearance charges. Always keep your permits and relevant documents updated, and hire the services of reputed customs brokers to navigate the channels of taxes and duties.
Frequently Asked Questions
- How can I self-clear items?
If your shipment is of lower value, then you can self-clear them to avoid brokerage fees. The recipient has to inform their courier that they will pay the taxes and fees in person by contacting the CBSA office in their area with their order information and asking for instructions on clearing their items. Finally, collect an official receipt to present upon delivery.
- What are port fees?
Some ports charge an additional fee for storing packages before they are forwarded to another location.
- How can I avoid random customs clearance checks?
Although there is no way to avoid random checks, you can ensure that all your documents and permits regarding the shipment are in order, and use reputed delivery companies and customs brokers to reduce the chances of being selected for a random check.
