Terms of Sale (also called incoterms) tell FedEx and customs who is responsible for shipping costs, risk and import duties on an international shipment. The most common ones are DDU and DDP, which differ by who pays the import duties and taxes.
Where to set FedEx Terms of Sale in SKULabs
Go to Settings > Shipping > Carrier accounts, click the pencil (edit) icon on your FedEx account and choose an option in Terms of sale (International customs). Use Customs duties payer to choose whether the Recipient or the Sender pays duties. An Importer of Record is only needed when Terms of Sale is DDP and Customs duties payer is Sender.
The Terms of sale (International customs) dropdown on a FedEx carrier account.
FedEx Terms of Sale options explained
The definitions below summarize the FedEx shipping glossary.
DDU (Delivered Duty Unpaid). The seller pays to deliver the goods to the named place in the destination country. The buyer (recipient) pays import duties, taxes and other import charges.
DDP (Delivered Duty Paid). The seller pays all costs and bears all risk of delivering the goods to the named place in the destination country, including duties, taxes and other import charges.
DAP (Delivered at Place). The seller delivers the goods, ready for unloading, at the named place of destination. The buyer handles import clearance and pays import duties and taxes.
DAT (Delivered at Terminal). The seller delivers the goods, unloaded, at a named terminal in the destination country. The buyer handles import clearance and pays import duties and taxes.
FOB_OR_FCA (Free on Board / Free Carrier). The seller covers all costs up to and including handing the goods to the carrier at the named point of export.
CIF_OR_CIP (Cost, Insurance and Freight / Carriage and Insurance Paid). The seller's price includes the goods, insurance and all transportation to the named point of import.
CFR_OR_CPT (Cost and Freight / Carriage Paid To). The seller's price includes transportation to the named point of import. Insurance is the buyer's responsibility.
EXW (Ex Works). The seller makes the goods available at its own premises. All other charges are the buyer's responsibility.
Need help?
If you are not sure which Terms of Sale to use, check with FedEx or your customs broker. For help with SKULabs settings, contact support through live chat or at support@skulabs.com.