How our guarantee works
The guaranteed landed cost assures complete accuracy in calculating the full landed cost and handling the payment and remittance of duties, taxes, and fees to the appropriate government agencies, customs, or brokers.
Global Checkout shipments must have transportation charges billed to the shipper. The shipper will be contracted for UPS Global Checkout™ and agrees to be invoiced for all charges related to the UPS Global Checkout service.
Guarantee time frame
For ecommerce shipments, UPS honors the landed cost calculation from the time of quote to the time of customs clearance for 90 days.
Included products and services
Our guarantee includes landed cost calculations and HS code classifications to ensure an accurate landed cost. The classification will be provided at the time of quote.
Our guaranteed landed cost calculations include the following:
- Tax rates
- Country
- Region
- Reduced tax rates based on HS code
- Entry and clearance taxes
- Tax de minimis support
- Import tax thresholds
- Duty rates
- Duty calculations for up to 10-digit (or 13-digit when applicable) HS codes
- Estimated duty rate for items without HS codes
- Simplified duty regimes
- Duty de minimis support
- Import fee calculations
- Import and brokerage-related services
How billing works
For a full walkthrough of how charges flow between you, your customer, and UPS — including how your shipment is modified and what appears on your transportation invoice — see Billing information.
What's covered
When an issue occurs out of your control, UPS' guarantee will cover the cost. Some common risks and issues include:
HS code is changed by the broker or customs
Brokers will take provided HS codes under advisement when clearing a package. If, upon reading the description of goods, the broker disagrees with the provided HS code, they will use the HS code they feel most accurately reflects the item classification. A change in the HS code will likely result in a much higher duty amount than the original code provided on the paperwork.
Customs disagrees and changes the value of the goods
When customs or a broker feels an item is undervalued, they will research the provided good to ensure the proper valuation is used. When they disagree with the valuation, they will use a “market” value they feel most appropriately reflects the value of the good. If customs deem an under-valuation intentional, they may also apply penalties or fines to the export. The burden of proof is with UPS to demonstrate to customs the goods were properly valued.
Broker or customs calculates incorrectly
Customs and brokers can make mistakes when calculating duties and taxes. If customs calculates incorrectly, it is unlikely the exporter will be aware, and it is time-consuming to request a refund or adjustment of the amount paid. As needed, UPS will contact the broker or the customs office to determine if a refund or adjustment is warranted.
The country changes its tariff schedule or tax rates
A country can change its tariff or tax rates at any time. However, most countries will provide notice and an opportunity for public comment before implementing changes to their tariff or tax rates. With a 90-day guarantee, the likelihood that duty and tax rates change before the shipment clears customs increases. When this occurs, UPS still honors the calculated amount.
Changes in foreign exchange
UPS calculates duties and taxes on the destination currency, not the base/export currency. This is consistent with how calculations are done by customs upon import. UPS applies a forward premium to the forex amount, and it is inclusive of customs or brokerage foreign exchange fees and accounts for the risk associated with fluctuating exchange rates.
De minimis
If an order is shipped DDU because it was under the de minimis but the destination country determines it is over the de minimis, UPS will cover the duties, taxes, and fees assessed.
What's not covered
When prices, HS codes, or customs documentation do not match what was provided at the time of a guaranteed calculation, UPS is not obligated to guarantee the calculation and can reclaim additional costs. These scenarios include but are not limited to the scenarios below.
Changes to the sale price
The total amount of the order and the total value of the goods on the commercial invoice should always match. However, there are times when the item amounts on the commercial invoice don't match 1:1 with the order. An example would be when UPS consolidates line items by HS code or correctly displays discounts, the order will still be covered as long as the commercial invoice totals match the order total. If you change an item value that does not reflect the sale price, the guarantee will not be available.
Changes to the HS code
There is no need to change the HS code unless you change it to accurately reflect the item's appropriate code. UPS can help with classification to ensure an accurate code is used on the commercial invoice. If you change an HS code to an inaccurate code, the guarantee will not be available. We recommend not changing the code after the guaranteed quote unless you are confident it is the accurate classification.
Inaccurate customs documentation
Any changes to the commercial invoices that incorrectly reflect the order, such as item descriptions, country origin, items amounts, or shipping amounts, are not covered by the guarantee. All product and shipping costs should reflect what was actually paid; any inflated amounts are not covered. Any additional costs incurred from incorrectly completing documentation will be collected.
Guaranteed calculations
Guaranteed landed cost calculation accuracy.
With guaranteed landed cost calculations, you can receive peace of mind with a transparent, fully-guaranteed calculation. UPS covers any discrepancies in duties, taxes, and fees, ensuring you never have to worry about disputing these charges.