Frequently Asked Questions:
1. Why do I get charged for taxes when my shipment terms were DAP?
2. Why can't you notify me before address correction fees are charged?
Question: Why do I get charged for taxes when my shipment terms were DAP?
Answer:
While DAP terms specify that the consignee should pay import duties and taxes, courier companies require shippers to guarantee payment as a condition of service. If the consignee cannot or will not pay these charges, the courier has the contractual right to bill them back to the shipper. This is standard practice across the industry and applies regardless of your original shipping terms agreement with the customer.
Understanding Courier Terms and Shipper Liability
According to Courier's Terms and Conditions of Service, which govern all shipments processed through their network, the shipper bears ultimate liability for all duties, taxes, and related charges. This is a fundamental principle in international courier services that applies regardless of the originally agreed tax handling terms.
Here's how the liability structure works for DAP:
- Primary Responsibility: The consignee (recipient) is initially responsible for paying import duties and taxes upon delivery
- Secondary Liability: If the consignee refuses or defaults on payment, the liability automatically transfers back to the shipper
- Courier Protection: UPS and other major couriers protect themselves from non-payment by maintaining this shipper guarantee system
Why This Charge Occurred
In some cases, the consignee was unable or unwilling to pay the required import duties and taxes when the shipment arrived. Under standard courier terms, Courier has the contractual right to bill these charges back to the shipper (us) when the consignee defaults on payment. This is not an error in billing but rather the enforcement of standard international shipping terms that all shippers agree to when using courier services.
Documentation and Proof
You can write us an email to get a proof of tax invoice.
Moving Forward
While we understand this situation is frustrating, these charges are legitimate and must be honored according to our service terms. To help prevent similar situations in the future, we suggest:
- Offer DDP (Delivered Duty Paid) terms for future shipments, as the final liability is on shipper.
- Provide more detailed explanations to consignees about their tax obligations before shipping.
- Use tax-inclusive shipping options where available for certain destinations.
Question: Why can't you notify me before address correction fees are charged?
Answer:
When working with express couriers like UPS or FedEx, address corrections follow a standardized industry process that operates within their logistics network. These corrections are triggered by different scenarios:
1. Consignee-Requested Address Correction
When the recipient contacts the courier directly to change the delivery address, the courier will make the change to ensure successful delivery and charge back the fees based on who the designated payer is (typically the shipper base on Spaceship label setting and service terms).
2. Automated System Corrections
Couriers employ sophisticated address validation systems that compare shipping addresses against their delivery database during package processing. When discrepancies are detected—such as incorrect street numbers, missing apartment details, or formatting issues—the system automatically attempts corrections to ensure successful delivery.
Industry Standard Protocol
Express couriers prioritize successful delivery and operational efficiency above all else. They will not seek permission from the payer before making necessary corrections, as this would significantly delay shipments and compromise their service commitment.
If an address correction happen, the courier will charge back the cost based on who the payer is according to the original shipping agreement. Base on our service term, the payer is the shipper
Why We Cannot Provide Advance Notice
This is the reason we are not able to proactively inform you - we are alerted only when the invoice is received from the courier. The correction process happens in real-time during the courier's operational workflow, and we have no visibility into these decisions until after they occur.
Recommendation
Given the unpredictable nature of express courier additional charges, I would recommend incorporating a cost buffer into your shipping budget to account for unexpected fees such as:
- Address correction charges
- Remote area surcharges
- Residential delivery fees
- Peak season surcharges
Suggested Approach: Consider adding a 5-10% or HKD30-50 (whichever higher) contingency buffer to your shipping costs to accommodate these potential additional charges.
Last updated: 27 Aug 2025