Tuesday, September 18, 2018

Treatment of Duties and Taxes for UPS International Shipments

When users processInternational Shipments using UPS as the Shipping Carrier and want to shoulderShipping Cost as well as Duties and Taxes, consider the following: 

Currently, in Setup >Accounting > Shipping > Preferences tab, users only have theability to specify FedEx Duty Payment Type but not UPS.  Users alsodo not have an option during Item Fulfillment to set Duties and TaxesPayments.

As per UPS website :

Unless otherwise indicated,shipping charges are billed to the shipper's UPS Account Number and theconsignee or receiver pays duties & taxes.

UPS have differentBilling Options for UPS International Shipments :

     A. Freight Collect - These are shipments from other countries to US orfrom US to other countries. The receiver is paying for taxes, duties andfreight (shipping cost).
      B. Prepaid - The shipper pays forthe freight and the receiver pays for duties and taxes. (This is the option wehave)
      C. Free Domicile - The shipper paysfor freight, duties and taxes. With this option, if done within ups.com, UPSwill charge additional $10 fee.

Even if Third Party Billingoption is enabled, the different Third Party Billing Types in NetSuite arenot considered Free Domicile. 

Refer to http://www.ups.com/content/us/en/resources/pay/international_billing.html for additional information about UPS International Shipping.

Note: Users may attach their case to Enhancement184294 : Ability to select Free Domicile Billing Option.

1 comment:

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