Articles on: VAT / Duties / Customs

πŸ“¦ FedEx USA: Tariffs & Duties Chargebacks ✈️

What South African Sellers Need to Know ✈️


If you've received an unexpected chargeback invoice from TUNL for unpaid duties and tariffs for a FedEx shipment to the USA - you're not alone. This is a growing issue, and it doesn't mean you've done anything wrong.


Here's what's happening, why you're being charged, and how to prevent it going forward. πŸ‘‡


🌍 What's Changed in the USA?


For a long time, shipping goods to the USA was relatively straightforward. Parcels under $800 in value were completely exempt from duties and tariffs - this was known as the de minimis threshold. On top of that, South African goods benefited from AGOA (the African Growth and Opportunity Act), which allowed many products to enter the USA duty-free, regardless of their value.


That's all changed.


The US government has removed the $800 de minimis exemption, and AGOA preferential treatment is no longer guaranteed across the board. Duties and tariffs now apply to the majority of goods, and at higher rates than before.


In plain terms: almost every parcel entering the USA now has some level of import duties and tariffs  attached to it.


This often catches buyers completely off guard. They weren't expecting a bill after their order arrived - and that's exactly where the problem starts. πŸ‘‡



πŸ“¬ DAP Shipping: Why the Bill Comes Back to You


Many sellers choose to ship on DAP (Delivered At Place) terms because it seems like the simpler option - the idea being that the receiver is responsible for covering any duties and tariffs on their end.


Here's how it actually plays out when shipping DAP to the USA:

  • FedEx delivers the parcel to your customer **without collecting duties upfront **(although they do provide them with an invoice on delivery)
  • FedEx send the invoice to the receiver after delivery via email
  • FedEx sends multiple payment reminders to the receiver
  • If, after 45 days, the receiver fails to pay, the charges are billed back to you - the shipper 😬


This isn't an error. It's standard carrier policy for FedEx USA. When duties go unpaid, liability returns to the shipper’s account.



βš–οΈ DAP vs DDP: Key Differences


🚚  DAP (Delivered At Place)

βœ…  DDP (Delivered Duty Paid)

Receiver pays tariffs after delivery

Receiver pays tariffs upfront at checkout

Risk of non-payment by receiver = chargeback to shipper

No chargeback risk for shipper

Unexpected costs for the buyer

Full landed cost visible to buyer

Possible delivery friction & customs delays

Smoother, faster delivery experience



πŸ’¬ Received a Chargeback? Here's What to Do:


  1. Gather your shipment details - tracking number, commercial invoice, and any communication with your buyer about the charge
  2. Review your shipment details - check that HS codes and product classifications are correct, confirm the duty/tax amount charged is correct and double check it was booked DAP
  3. If there's been a mistake, or if you're unsure, contact TUNL support - we'll help you assess whether the charges are valid and guide you before raising a dispute with FedEx if needed
  4. If the charges are valid, contact your receiver; send them the payment link and invoice you've received, and request them to pay the amount to avoid your account being charged


⚠️ Important: Disputes are reviewed case-by-case directly by FedEx - final decisions rest with them. TUNL can guide and support you through the process, but cannot guarantee reversals.



πŸ›‘οΈ How to Protect Yourself Going Forward


The most effective solution is to switch to DDP (Delivered Duty Paid):


  • Duties and tariffs are calculated and collected before the shipment leaves
  • Your buyer sees the full landed cost upfront - no surprises
  • Zero risk of chargebacks for your business
  • Deliveries are smoother, faster, and less likely to be delayed at customs
  • Your buyers get a better experience, which means fewer disputes and stronger reviews


We've also noticed that UPS has a much lower DAP chargeback rate, so if your business model relies on DAP shipments, shipping with UPS is preferable. There is a higher chance of duties being successfully collected from your receiver, minimising risk to your business.


πŸ’‘ Bottom line: DDP removes uncertainty for both you and your buyer. It's the recommended shipping method for all US-bound parcels.


πŸ“Œ Quick summary


  • πŸ‡ΊπŸ‡Έ The USA now applies duties and tariffs to most imports
  • πŸ“¬ DAP = receiver pays duties after delivery
  • πŸ’Έ If the receiver doesn't pay within 45 days, you get billed
  • πŸ“‹ This is standard carrier policy β€” not an error, and out of TUNL's control
  • βœ… Ship DDP to eliminate rebilling risk entirely


Still unsure or need help? Chat with us on WhatsApp or Chat  - we're always happy to help πŸ’™



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Updated on: 07/04/2026

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