With shipcloud, you can transfer incoterms to the carriers for your shipping to a non-EU country.


In this article you will learn which incoterms you can book with shipcloud and how to transmit them to the carriers via our multi-carrier interface.

In this article ๐Ÿ‘‡

  1. What are incoterms and what is regulated by them?

  2. Which incoterms can be transmitted with shipcloud?

    1. DAP (Delivered at Place)

    2. DDP (Delivered Duty Paid)

  3. Transmitting incoterms to GLS via shipcloud WebUI

  4. Transmitting incoterms via API request

    1. GLS

    2. Asendia

    3. UPS

  5. Transmitting billing options to UPS via API request

    1. Applying UPS billing options for B2C shipping

    2. Applying UPS billing options for B2B shipping


What are incoterms and what is regulated by them?

Incoterms (International Commercial Terms) are standardized international trade clauses that are recognized worldwide.

They comprise uniform contractual and delivery terms that cover all obligations, risks and costs in the global movement of goods and thus enable the parties involved in a sales contract to standardize the handling of international as well as national commercial transactions.

Standardization through the incoterms regulates

  • how the transport costs are distributed or which contractual partner bears which costs,

  • which duties of care are to be observed or which contractual partner assumes which obligations on which route and,

  • how the risk is transferred or which contractual partner covers which risk at which point in time.

Accordingly, incoterms basically regulate the distribution of costs and obligations as well as the transfer of risk between contracting parties. These main functions also indirectly determine,

  • who procures the necessary goods documents and inspects the goods,

  • who procures the transport documents,

  • who ensures compliance with packaging guidelines,

  • who insures the shipment contents for sub-processes,

  • who is responsible for customs clearance and,

  • who informs whom at what time and about what.

Incoterms only become legally binding when they are explicitly agreed upon (e.g. in the sales contract) between seller and buyer.

Which Incoterms can be transmitted with shipcloud?

With shipcloud, you can transfer the arrival clauses DAP and DDP to the carriers and thus clarify the responsibility regarding the transport and customs costs as well as the shipping risk. Probably the most important difference between the incoterms is the clarification of when the risk is transferred from the seller to the buyer.

DAP - Delivered at Place (delivered - named place)

The seller must provide the buyer with the goods ready for unloading at the place of destination at his own expense and risk. Upon delivery of the goods to the buyer or upon unloading at the agreed destination, the cost and risk of loss or damage is passed to the buyer.

Obligations of the seller

  • Inspection of goods & packing

  • Clearance of the goods for export (export clearance)

  • Loading of the goods

  • Transport to the export location

  • Assumption of export duties, taxes and customs clearance

  • Payment of terminal costs at the place of originLoading on the (main) transport

  • Payment of transport costs

  • Payment of terminal costs at destination

DDP - Delivered Duty Paid (delivered duty paid - named place)

The seller must provide the buyer with the goods cleared for import ready for unloading at the place of destination at his own expense and risk. Upon delivery of the goods to the buyer or upon unloading at the agreed destination, the costs and risk of loss or damage is passed to the buyer.

Obligations of the seller

  • All obligations as for DAP

    โž•

  • Assumption of import duties, taxes and customs clearance

Transmitting incoterms to GLS s via the shipcloud WebUI

Since incoterms must always be transferred to GLS for international shipping, you can transfer them to GLS via the shipcloud WebUI as well as via API request.

Default configuration of incoterms to GLS in the shipcloud WebUI

You can preset your desired incoterm in your GLS configuration in the menu item "Configurations" >> "Carriers" >> "GLS".



This way, it will always be preselected automatically when you create your shipping labels.


Good to know: Of course, you can also select an incoterm that differs from your setting made in your GLS configuration when creating your shipping labels.


Transmitting incoterms via API request

GLS

The incoterms for your international GLS shipments can be transferred to GLS via the shipcloud WebUI as described above or alternatively via API request using our interface when creating the shipping labels for each shipment.

If you want to transfer an individual incoterm per shipment, you have the option to transfer the parameter 'incoterm' in your API request. In this case the parameter passed in your API request will be used instead of the default incoterm in your GLS configuration when booking the label and creating the shipment.

Asendia

You can only use Asendia with your own Asendia account in connection with shipcloud. You can also find more information here. You can also transfer the incoterms DAP, DPU and DDP to the carrier Asendia via API request.

UPS

You can also transfer the incoterms DAP and DDP to UPS via API request.

If you create a UPS commercial invoice with shipcloud, your transmitted incoterm will be automatically integrated on it.

Transmitting billing options to UPS via API request

If you have your own UPS contract, UPS will also provide you with the so-called "billing options" for your international shipping and thus support you in the billing and payment processing.

For your international UPS shipment, you can use the UPS billing options via API request to inform the carrier which party (shipper, consignee, third party) is responsible for the transportation costs and/or the import and customs duties incurred in the destination country and instruct UPS to collect these from the respective party.

In contrast to the incoterms, however, they do not regulate which of the parties has to bear the shipping risk.

๐Ÿ“Œ A universal setting of your preferred billing option in your UPS configuration is not possible.

๐Ÿ“Œ If you do not pass any billing options to UPS at the time of booking, the transport costs are charged to the sender by default and the import and customs charges incurred in the destination country are collected by UPS from the recipient.

Applying UPS billing options for B2C shipping

1. Transportation costs: sender / import and customs duties: sender

Transportation charges

Duties and taxes

Sender
(with own UPS account number)

Sender
(with own UPS account number)

In classic B2C shipping, the sender usually pays all fees, i.e. transportation costs as well as import and customs duties (also referred to as "free delivery").

API request

"billing": {
"transportation": {
"type": "sender"
},
"duties_and_taxes": {
"type": "sender"
}
},

2. Transportation costs: sender / import and customs duties: no specification

Transportation charges

Duties and taxes

Sender
(with own UPS account number)

no specification via API request => 

Receiver

(without own UPS account number)

If you inform UPS that you, as the sender, are responsible for the transport costs, but do not provide any information on import and customs duties, the import and customs duties incurred in the destination country will be collected by UPS from your recipient by default.

3. Transportation costs: without specification / import and customs duties: without specification

Transportation charges

Duties and taxes

no specification via API request => 

Sender
(with own UPS account number)

no specification via API request =>  

Receiver
(without own UPS account number)

Unless you submit billing options to UPS, you as the sender will be billed for the transportation charges or your UPS account number and the import and customs charges incurred in the destination country will be collected by UPS from your receiver by default. UPS refers to this as "prepaid." "P/P" will be printed on the shipping label.

UPS billing options for B2B Shipping

For B2B shipping, different billing options can be mapped using the UPS billing options. In classic B2B shipping, the recipient usually pays the import and customs charges.

๐Ÿ“Œ If a third party or the recipient has to pay the transport costs and/or import and customs charges, this party must have a UPS account number. You must submit this to UPS in your API request along with the country and corresponding ZIP code of the billing address.

1. Transportation costs: sender / import and customs duties: third party

Transportation charges

Duties and taxes

Sender
(with own UPS account number)

Third party

(with own UPS account number)

API request

"billing": {
"transportation": {
"type": "sender"
},
"duties_and_taxes": {
"type": "third_party",
"account_number": "380800",
"zip_code": "10001",
"country": "US"
}
},

2. Transportation costs: receiver / import and customs duties: no specification

Transportation charges

Duties and taxes


Receiver
(with own UPS account number)

no specification via API request => 

Receiver
(unknown)

If you indicate to UPS that you want your receiver to pay the transportation costs, but do not specify the import and customs charges, your receiver will also be charged the import and customs charges incurred in the destination country by default by UPS at your receiver's location (also referred to as "prepaid").

3. Transportation costs: receiver / import and customs duties: receiver

Transportation charges

Duties and taxes

Receiver

(with own UPS account number)

Receiver

(with own UPS account number)

๐Ÿ“Œ If the transport and/or customs charges are to be borne by your recipient, he must have his own UPS account with the corresponding customer number.

API request

"billing": {
"transportation": {
"type": "receiver",
"account_number": "654321",
"zip_code": "93101",
"country": "US"
},
"duties_and_taxes": {
"type": "receiver",
"account_number": "654321",
"zip_code": "93101",
"country": "US"
}
},

4. Transportation costs: third party / import and customs duties: no specification

Transportation charges

Duties and taxes

Third party
(with own UPS account number)

no specification via API request => 

Receiver
(with own UPS account number)

5. Transportation costs: third party / import and customs duties: receiver without UPS account number

Transportation charges

Duties and taxes

Third party
(with own UPS account number)

Receiver
(without UPS account number)

API request

"billing": {
"transportation": {
"type": "third_party",
"account_number": "380800",
"zip_code": "10001",
"country": "US"
}
},

6. Transportation costs: third party / import and customs duties: third party

Transportation charges

Duties and taxes

Third party
(with own UPS account number)

Third party
(with own UPS account number)

๐Ÿ“Œ If the transport and/or customs charges are to be borne by a third party, this party must have its own UPS account with the corresponding customer number.


Any further questions? We're happy to help.


These articles might also interest you ๐Ÿ‘‡

Asendia: shipping by using your own business rates

Asendia: overview of the connection with shipcloud

Asendia: shipping to a non-EU country

GLS: shipping by using your own business rates

GLS: overview of the connection with shipcloud

GLS: shipping to a non-EU country

UPS: Shipping by using your own business rates

UPS: overview of the connection with shipcloud

UPS: shipping to a non-EU country

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