.png)
Brexit & DDP charges
Due to the amount of shipments between UK and EU Countries, the carriers had to employ hundreds of additional customs brokers and custom clearance personnel, IT systems, storage facilities etc. Due to these costs, ALL carriers are implementing a ‘Brexit Surcharge” or ‘UK -EU Customs surcharge’ for all Customers / shipments.
Brexit and Customs Charges
Carrier Brexit or Border Surcharges (updated March 1st 2021)
- UPS Brexit Surcharge = £4.50
- DHL = £0.25 per kg with a minimum charged amount of £4.50 per shipment
- FedEx = already implemented into their transportation costs
- TNT = £4.31
- DHL Connect = £6.50
- Hermes (Border Fee) = £2.50
- DPD = £3.50
Brokerage Fees
Brokerage charges is the fees the courier charge to process customs clearance on behalf of the receiver. If the receiver want to appoint their own broker to do clearance then that’s fine, and they can pay their own broker instead.
Common charges are below for Europe.
- UPS = 15 EUR +VAT
- DHL = 17.50 EUR +VAT
Terms of Trade Carrier and Customs costs
Tax & duty-related charges. As you may know, shipping internationally means the sender or the recipient will have to pay for taxes and duties under certain conditions and the amount will vary depending on the destination.
DDP (Delivery Duty Paid)
For DDP shipments (Deliver Duty Paid), you (the sender) will pay for the taxes and the duties. However, the pricing for this is more complex! The couriers will charge you an additional fee for paying those T&D on your behalf when the shipment arrives at the destination country. In addition to the fixed “DDP handling fee” for taking care of those taxes & duties, you can also expect a “ disbursement fee”, calculated as a percentage of the amount of Taxes & Duties they will advance on your behalf. These charges can appear subsequently and should not be underestimated.
Handing / Admin fee shipments (updated March 1st 2021)
- UPS Duty and Tax Forwarding Charge = £14.90 + fuel per shipment
- DHL Admin Charge = £16 per shipment
- FedEx Admin Charge = £12 or 2.5% value of D&T’s whichever is greater
- TNT Admin Charge = £20 or 5% value of D&T’s whichever is greater
- DHL Connect DDP Fee = £5.00 (DDP only option for this service)
- DPD = not offered via World Options
DDU (Deliver Duty Unpaid)
DDU shipments (Deliver Duty Unpaid) the recipient is responsible for paying the taxes and the duties. In this case, you won’t see any additional charges from the courier. However, you need to remain alert, because as the sender you will be responsible for your shipment in case the recipient is not willing to pay those taxes or doesn’t want the shipment anymore. In that case, either you would have to pay for the recipient, or worse case scenario, ask for your shipment to be returned or abandoned. In both cases, someone will have to pay something.
Note: DDU is sometimes also known as DAP.
DAP (Delivered-at-place) is an international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location. In delivered-at-place agreements, the buyer is responsible for paying import duties and any applicable taxes, including clearance and local taxes, once the shipment has arrived at the specified destination.
UPS Import Fees
This is a brokerage fee imposed by UPS for clearance of European shipments.
This is charged regardless if sender or receiver will be paying for duty and taxes.
UPS will be clearing goods in customs on behalf of the receiver unless they assign a personal broker to clear the goods for them.
This may be settle online, through the UPS website, anytime up to 30 minutes’ prior delivery or paid to the driver. If you choose to pay your import fees online, we recommend saving a copy of your receipt, send it to receiver and have them show it to driver.
This fee can be charged to UPS account if provided during booking.
If customer would like to request this be charged to receiver's UPS account while shipment is in transit, they would need to send letter of authority to UPS as World Options cannot request this after booking.
For disputes, the receiver will need to query these charges with local UPS as the charges are between the receiver and customs. Due to General Data Protection Regulation, they will not discuss this with World Options.
To know if UPS account was provided during booking, refer to bottom part of the label under Billing. It would show an account number if it was provided during booking.
July 1st 2021 changes
From 1st July; the One Stop Shop and Import One Stop Shop systems (OSS and IOSS) will be introduced to simplify the reporting of EU VAT for B2C shipments valued less than €150.
We have also put together a document containing some frequently asked questions with regard to Brexit, using UPS as the example carrier, with the answers to these questions
If you have any questions on Brexit, please contact your Account Manager who will be happy to assist.