International express delivery has a wide variety of hidden fees, and the calculation of customs duties and fuel surcharges can be complex.
In this article, Weefreight will explain these in detail, hoping it will be helpful.
Hidden Fees of International Express Delivery
Fuel Surcharge: Fluctuations in fuel prices affect the operating costs of international express delivery, and express delivery companies will charge a fuel surcharge. This fee automatically updates on the 15th of each month and is generally 15%-30% of the base freight rate. By 2025, due to rising international oil prices and labor costs, the fuel surcharge had risen from 18% in 2024 to 22%-25%.
Remote Area Surcharge: International express delivery companies often charge additional fees for packages destined for remote areas. For example, FedEx categorizes remote areas into three levels: A/B/C. Level C areas charge 4.6 yuan per kilogram plus a 26.5% fuel surcharge, with a minimum single-shipment fee of 220 yuan.
Residential Delivery Fee: If the courier delivers to a non-commercial address, such as a residential area, a residential delivery fee of 50-80 RMB per package may be added.
Overlength/Overweight Surcharge: If a package exceeds 120cm on one side or weighs more than a certain amount, an overlength/overweight surcharge will be applied. For example, UPS may double the overlength surcharge for oversized packages.
Customs Clearance Fees: These include customs declaration fees and handling fees. Some courier companies do not proactively disclose these fees when advertising their prices. Customs declaration and clearance fees vary significantly between courier companies.
Warehouse Detention Fees: Overseas warehouses or courier companies may charge a daily fee for detaining goods, such as US$5 per day. Delays in customs clearance can increase costs.
Return Handling Fee: If a package is refused or needs to be returned for other reasons, the return shipping fee may be borne by the sender and may even exceed the shipping cost.
Address Change Fee: Some couriers charge a fee for changing the delivery address; UPS, for example, charges $15.
Tariff Calculation Methods
Ad valorem: This is the most common method of levying duties. The formula is: Duty Amount = Dutiable Value × Duty Rate. The dutiable value is generally the sum of the value of the goods before unloading at the import destination, transportation costs and related expenses, and insurance. For example, if a pair of Bluetooth headphones shipped to France is worth 3,000 yuan and the shipping cost is 500 yuan, and the French tariff rate for this type of product is 6.5%, then the customs duty = (3,000 yuan + 500 yuan) × 6.5% = 227.5 yuan.
Specific Duty: The formula is: Duty Amount = Quantity × Unit Tax. This method uses the volume, weight, and quantity of the goods as the basis for calculating customs duties. This method is commonly used for specific categories of goods, such as agricultural products. For example, if a specific duty of 3 yuan per liter is imposed on 100 liters of imported beer, the customs duty = 100 × 3 = 300 yuan. Compound tax: A combination of ad valorem and specific taxes is used. The formula is: Customs duty = Quantity × Specific tariff + Dutiable value × Ad valorem tariff. For example, if the dutiable value of an imported good is 50,000 yuan, the tax rate is 10% + 2,000 yuan per ton, and the weight is 1 ton, then the customs duty = 50,000 yuan × 10% + 2,000 yuan = 7,000 yuan.
Fuel surcharge calculation method
The fuel surcharge is typically calculated as a percentage of the base freight rate. Express delivery companies determine a fuel surcharge percentage based on monthly fuel prices and then multiply the base freight rate by this percentage to determine the fuel surcharge amount. For example, if the base freight rate of an international express delivery is US$100 and the monthly fuel surcharge is 25%, the fuel surcharge is 100 × 25% = US$25.
(Note: All fees listed above are for reference only. Please refer to your actual invoice for details. Thank you!)
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