Eligibility and coverage
Learn about what is covered with guaranteed landed cost calculations and eligibility requirements.
Zonos can guarantee the price paid at checkout will be the final price paid by the customer for a certain amount of time. However, there are time limitation and exceptions to this guaranteed price. Zonos will cover costs if issues occur out of the exporter's control.
Guarantee time frame
For ecommerce shipments, Zonos honors the landed cost calculation from the time of quote to the time of customs clearance for 90 days. With approval, Zonos can guarantee the calculation for up to a year for companies with products built to order, back ordered, or have ecommerce subscriptions.
Industry and item restrictions
When an item is restricted or has licensing requirements for importing goods into a country, a guarantee may not be available. Here are some industries Zonos does not currently support without written approval.
- Food products
- Wine and alcohol
- Prescription drugs
- Perfume and cosmetics
- Dangerous goods
Learn about Zonos Restrict and how to find and set restrictions for items in your catalog.
What Zonos guarantees
When an issue occurs out of your control, Zonos 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 Zonos 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, Zonos 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 increases duty and tax rates change before the shipment clears customs. When this occurs, Zonos still honors the calculated amount.
Changes in foreign exchange
Zonos calculates duty and taxes on the destination currency, not the base/export currency. This is consistent with how calculations are done by customs upon import. Zonos 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.
If an order is shipped DDU because it was under the de minimis but the destination country determines it is over the de minimis, Zonos will cover the duties, taxes, and fees assessed. This applies to shipments with all approved carriers with the exception of UPS where the duty and tax forwarding surcharge is not waived. Please see this page for details.
What Zonos does not guarantee
When prices or hs codes do not match what was used for the guaranteed calculation, Zonos is not obligated to guarantee the calculation.
If you change the sale price
When you ship in the Dashboard, the prices on the commercial invoice will match the buyer's order. 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 do not match 1:1 with the order. An example would be when Zonos 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.
If you change the HS code
There is no need to change the HS code unless you change it to accurately reflect the item’s appropriate code. Zonos Classify 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.
With approval, Zonos can guarantee a landed cost quote for a subscription up to a year. In the API, this would entail passing the same landed cost quote ID for the guarantee to the completed order for all the recurring shipments. See an example below with different order IDs and the same landed cost ID.
|Date||Product||Price||Order ID||Landed Cost ID|
|January 1||Shipment 1||45.00||b2yf87g|
|April 1||Shipment 2||45.00||h3jk94h|
|July 1||Shipment 3||45.00||k5lm23j|
|October 1||Shipment 4||45.00||p8qr12l|
Duty and tax inclusive
Zonos can support duty and tax-inclusive pricing with our guarantee. See the documentation on creating a product price with duty and tax included.