Who bears the international air freight charges?
In international air freight cross-border transportation, the entities responsible for bearing customs duties and the consequences of non-payment are frequent points of contention in foreign trade transactions and cross-border shipments. Many merchants have encountered problems such as cargo detention, additional losses, and customer disputes due to the failure to agree on rights and responsibilities in advance. Clarifying the rules of customs duties and responsibilities and avoiding risks in advance is a necessary prerequisite for cross-border air freight shipments.
From a legal and industry common rules perspective, international air freight customs duties are generally assumed to be borne by the recipient. The customs regulations of various countries clearly state that the taxpayer for imported goods is the import consignee, and customs duties, value-added tax, consumption tax, and other customs clearance fees must be paid by the recipient during the goods clearance process. This is also a common rule for international trade FOB, CFR, and CIF standard trade terms. The shipper is only responsible for the shipment of goods and does not bear taxes and fees in the destination country.
However, the rights and responsibilities can be changed through trade terms. If both parties agree on the DDP (Delivered Duty Paid) delivery clause after tax payment, the shipper should prepay all taxes and fees in advance, and the recipient does not need to pay additional fees and can directly sign for the goods. This clause is often used in cross-border e-commerce retail and cooperation scenarios with long-term customers. While the DDU (Delivered Without Duty) delivery clause still follows the default rule of the recipient paying taxes. Therefore, clearly defining the trade terms before shipment is the core basis for determining the party responsible for customs duties.
If the recipient refuses to pay customs duties without a valid reason, a series of chain negative consequences will occur, with losses accumulating layer by layer. Firstly, the goods will be detained, and the customs will temporarily hold the goods in a supervision warehouse, suspend the customs clearance and delivery process, and charge daily storage fees and detention fees. The longer the detention period, the higher the additional fees, which far exceed the value of the goods. Secondly, the shipper will be held accountable. Main international air freight service providers such as DHL, FedEx, and UPS clearly stipulate in their service terms that when the recipient refuses to pay taxes, all taxes, detention fees, and return shipping fees will be traced back to be borne by the shipper.
If there is no tax payment for a long time and the goods are detained beyond the period, the customs will take legal measures against the goods, and depending on the value and category of the goods, measures such as auction, destruction, or return to the origin will be taken. The proceeds from the auction will be used to offset taxes and storage fees, and the shortfall still needs to be paid by the shipper. The destruction of the goods will directly cause triple losses of cargo damage, transportation costs, and taxes. In addition, frequent refusal to pay customs duties by the recipient will be marked by the destination country's customs, and subsequent customs clearance will be subject to key inspection, affecting the import and export credit of individuals or enterprises.
Therefore, the shipper must confirm customs matters with the recipient in advance, clearly define the rights and responsibilities for tax payment, and new customers should be informed of the possible tax range in advance. In necessary cases, the DDP (Delivered Duty Paid) clause should be adopted for tax payment and shipment to completely avoid the risk of non-payment.