What are International Ancillary Fees?
FedEx as well as other carriers offer standard customs clearance on express air shipments and do not charge brokerage fees. However, they will still charge different fees by country for other services associated with customs clearance. Some examples of these are Additional Line Items, Storage, Freight Clearance, Returned Goods, Other Government Agency Processing, Temporary Import, Customized Service, Direct Payment Processing, Post Clearance Entry Adjustment and an Advancement Fee. To see a list of countries and their ancillary fees for FedEx click here
FedEx International Advancement Fee:
- The advancement fee is the most commonly charged fee of all the ancillary fees. The reason for this is FedEx will pay for all the Duty, Tax/VAT on behalf of the receiver and then collect the charges from the receiver. For example, a shipment to the UK will have a minimum charge of ￡10.50 or 2.5% of the advanced Duty/Tax whichever is greater. UPS has similar fees; to Canada UPS had a Bond Fee and outside of Canada it is a UPS Disbursement Fee.
Landed Cost and Ancillary/Advancement Fees:
- The FedEx GTM (Global Trade Manager) calculates/estimates duties and taxes that will be levied on your export shipments. Most customers do not realize that even if they use the Global Trade Manager it will only calculate duty and tax/VAT. It does not calculate any International FedEx advancement fees or other ancillary fees. This could mean a very large cost difference between the duty/tax estimator (GTM) and the actual total landed cost to the consumer. For example, a shipment valued at $50 USD to the UK charged at a total of 25% VAT and Duty would be estimated at $12.50, but charged another ￡10.50 or close to $17.00 USD (Google Currency Converter) This can leave your customer paying a lot more than expected our leaving you with the additional cost if the order was sent DDP. iGlobal Stores software allows for the calculations of ancillary fees and other charges to better estimate a total landed cost.