Who pays duties and taxes?

Generally, there are two options. The first option is for the receiver to pay the authorities directly for any duties and taxes, usually when the shipment is imported. VAT in some countries can be deferred or postponed depending on the import country revenue procedure. Duty is usually paid to the authorities at the time of import – except for specific customs procedures authorized in advance.

The second option is for FedEx to pay the authorities on behalf of the recipient. This is generally paid using our own deferment account which operates similar to a bank account with a direct payment to the authorities. FedEx will then invoice the receiver for this payment with a disbursement fee for the service.

Please note that duties and taxes will be charged to the recipient by default, unless the shipper marks the ‘Bill Shipper’ option on the air waybill at the time of shipping. Also note that if the recipient declines the shipment or refuses to pay, the shipper is ultimately liable for any duties and taxes assessed on the shipment.