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As with all international shipments, the Incoterms® for the shipment will determine who is paying duties, taxes, and freight costs.
If you are the shipper for this US export shipment and if you intend to pay for the freight costs, Flexport recommends that you ship using one of the following three Incoterms®:
- DAP: The exporter is covering freight costs from the origin warehouse to the final delivery destination, and the Importer of Record (IoR) is paying duties and taxes. Recommended if the final destination has reliable/standardized import processes.
- CIF: Recommended if the final destination country has import processes that require a lot of local expertise (e.g. Brazil, Saudi Arabia, etc.)
- DDP: This is possible, though it's important to be aware that the exporter is covering all costs associated with the shipment, including duties, taxes, and freight costs; the exporter is also responsible for potential storage charges at destination.