Shipping Regulatory Update

Customs regulations for inbound and outbound shipments change from time to time. We have collated important announcements by customs authorities worldwide to help our customers stay up-to-date when shipping with us. Timely understanding and compliance with new requirements such as duty and tax information, tariff descriptions, product-harmonized codes, and customs clearance documentation will avoid costly shipping delays

Current News

The Korea postal code system will change from 6 digits to 5 digits as of August 1, 2015:
Until further notice, continued use of the 6-digit postal codes is required to process FedEx shipments to and from Korea

Starting August 1, 2015, the existing 6-digit postal code system in Korea, which is based on the administrative units, will be changed to a 5-digit postal code system based on geographic features.

While FedEx works on updating its internal system to accommodate to the new 5-digit postal codes, FedEx requests customers continue to use the existing 6-digit postal codes on shipping documents for all shipments to and from Korea and in all FedEx shipping tools including ‘Get Rates & Transit Times’ and ‘Schedule and Manage Pickups’. Before submitting the documentation to the Korea Customs Service, FedEx will convert the 6-digit postal codes to the 5-digit postal codes in order to facilitate a smooth customs clearance.

Please click here to refer to the 6-digit codes based on 5-digit postal codes.
For any further inquiries, please contact your local Customer Service team.

 


Shipping items subject to quarantine in Japan

Under its Standard Conditions of Carriage, FedEx does not accept packages that require animal or plant quarantine. Please be advised that in the event we find an item that requires animal or plant quarantine upon arrival in Japan, we will either return the package to the original shipper or destroy it. We appreciate your cooperation in contacting and informing your shipper not to ship items requiring animal or plant quarantine when using our services for shipment to Japan.

Examples of items subject to animal or plant quarantine

Fresh/cut/dry flowers, potpourri, green produce, frozen fruits, green coffee, soybean, beans, malt, hay, seeds, fresh/frozen meat, beef jerky, ham, sausage, blood sample except human and mouse*, antibody, serum, fur pelts, feathers, bacteria

*Human and mouse blood samples addressed to the quarantine office are not acceptable.

 

ShowPrevious Posts
Regulation change on lithium metal battery shipments

Due to an ICAO/IATA regulation prohibiting the transport of lithium metal batteries on passenger aircraft effective January 1, 2015, there will be certain restrictions in destinations where FedEx is able to accept lithium metal battery shipments.

This restriction only applies to lithium metal batteries shipped by themselves and does not apply to batteries packed with equipment or contained in equipment.

For further information, please contact our customer service team.

Please use FedEx International Broker Select (BSO) when shipping high-pressure gas to Japan

Imports of high-pressure gas to Japan require imports inspection by the prefectural governor or designated organizations for safety compliance. FedEx does not handle the clearance process of high-pressure gas imports; therefore, customers who want to import high-pressure gas to Japan need to designate another customs clearance broker by using the FedEx International Broker Select.

Road name address requirement for shipments to and from Korea

Effective November 3, 2014, Korea Customs Service (KCS) fully enforce the use of a road name address for all import and export shipments requiring customs declaration in Korea. This mandate is in accordance with the new address system based on road names and building numbers, which the Korean government put into effect on January 1, 2014.

To avoid customs delays due to noncompliance with the use of a road name address, please provide a road name address on the air waybill and commercial invoice for all shipments to and from Korea.

You may find road name addresses corresponding to the old land-oriented lot-number addresses on the address conversion site at (http://eng.juso.go.kr/openEngPage.do)

Examples of road name addresses:

 

(Old) Land-oriented lot number address

(New) Road name address

337-2, Yangjam-li, Nam-myeon, Taean-gun, Chungcheongnam-do

415, Jeokdol-gil, Nam-myeon, Taean-gun, Chungcheongnam-do

77-6, Sejong-ro, Jongno-gu, Seoul

209, Sejong-daero, Jongno-gu, Seoul

1583-10, Seocho-dong, Seocho-gu, Seoul

58, Banpo-daero, Seocho-gu, Seoul

HS (Harmonized System) code requirement for Informal A Classified shipments to Korea

Effective September 1, 2014, Korea Customs Service (KCS) requires customers to indicate the HS (Harmonized System) code for all imported goods to Korea under the Informal A Classification. In addition, KCS will conduct on-site inspections as deemed necessary.

To ensure compliance and to avoid customs delays, please provide the HS Code on the air waybill for all Informal A-classified shipments to Korea.

Please refer to the HS code list on www.hscode.org or click ‘Get code’ on FedEx Ship Manager™ at fedex.com.

The Philippine Bureau of Customs’ Importer Accreditation

The Philippine Bureau of Customs (BOC) issued a memorandum (CMO 11-2014) that requires importers to be accredited with the BOC as per the guidelines outlined in the memorandum. Importers must also be registered with the Bureau of Internal Revenue (BIR) for the issuance of their BIR Importer Clearance Certificate (BIR-ICC).

Failure to comply with the requirements before August 1, 2014 or the expiration date of your current BOC accreditation, whichever is earlier, will result in your shipment being unable to clear Philippine Customs.

You can find all BOC requirements and details by clicking this HERE.

Regulatory notice from Papua New Guinea Customs Service (PNGCS)

Effective 27 May 2014, all importers and exporters must be registered with the registry section of the PNG Internal Revenue commission and obtain a Tax Code Number prior to registering with PNGCS’s Automated System. This will avoid any delays in custom clearance of your FedEx shipments.

For further information on the regulatory notice, please contact PNGCS.

Regulations Amendment on the Importation of Controlled Items into Indonesia

The Indonesian Ministry of Trade has issued Regulation 61/M-DAG/PER/9/2013, which amends regulation 83/M-DAG/PER/12/2012 regarding the importation of controlled items. This amendment imposes new limits on the quantity and value of two controlled items that may be imported into Indonesia

Effective September 30, 2013, the two products listed below are now subject to quantity limitations.

Product Category Previous Limitation New Limitation
Ready-made clothes*
  • Maximum of USD 250 per shipment
  • No quantity limitation
  • Maximum of USD 1,000 per shipment
  • Maximum of 10 pieces per shipment
Electronics*
  • Maximum of USD 1,500 per shipment
  • No quantity limitation
  • Maximum of USD 1,500 per shipment
  • Maximum of 2 pieces per shipment

** Please refer to the List of Indonesian controlled items subject to new quantity limitation (English) for more details.

The importation of ready-made clothes and electronics in quantities exceeding the controlled item limit, or the importation of other controlled products exceeding USD 1,500 may only be conducted by a registered importer with a special license from the Ministry of Trade. Failure to provide the license could result in the shipment being returned or in other Customs delays.

To avoid Customs delays or the shipment being returned, FedEx recommends that all customers shipping controlled items to Indonesia obtain all the necessary licenses and ensure all the required documents accompany the shipment.

You can find the details of the amended regulation at this link (Bahasa Indonesia only).

If you have further questions, please contact your local Customer Service team.

Russian Customs Requirements for Businesses to Consumers (B2C) shipments

Effective immediately, Russian customs requires businesses or companies sending goods shipments destined to private consignees in Russia to register with their express carrier before sending the shipment.

To register for B2C shipping to Russia, please contact your FedEx account executive or your local FedEx customer service team and have the below information ready:

  • Company name
  • Company website
  • FedEx 9-digit account number
  • General shipping commodities description
  • General shipment value & weight – can be a range

Income Tax Article 22 (PPh Pasal22) Revisions for Certain Imported Items

The Indonesian Ministry of Treasury recently issued Regulation 175/PMK.011/2013 regarding Income Tax Article 22 rates (PPh Pasal 22). The regulation changes the Income Tax Article 22 rate (PPh Pasal 22) for certain imported items. An income tax of 7.5% of the import value will be applied to items as specified in the appendix section of the regulation.

For items not included in the appendix, an income tax of 2.5% of the import value will be charged to the importer who has an Importer Identification Number (API) and an income tax of 7.5% of the import value will be charged to the importer who does not have an API.

These tax rates apply to importers who have a National Tax Registration Number (NPWP). Importers without an NPWP will be charged at a tax rate double the rate mentioned above.

Income Tax Article 22 (PPh Pasal 22) summary:

Item category

API Holder

Non-API with NPWP

Non-API without NPWP

Included in the appendix

7.5%

7.5%

15%

Not Included in the appendix

2.5%

7.5%

15%

This regulation went into effect January 6th 2014.

You can find a copy of the regulation and its appendix at the following link:
http://repository.beacukai.go.id/peraturan/2013/12/55ef3a28c6f4f9b484cdec6584ebff70-pmk-175.pdf

Assembly Shipment Order Compliance For Multiple Suppliers

Australian Customs and Border Protection Service (ACBPS) has released Australian Customs Notice (ACN) 2013/20 regarding Customs and Border Protection’s approach to managing cargo reporting compliance.  This has a particular impact on assembly shipment orders and the process for complying with ACBPS’ policy and legislative requirements.

Importers and exporters should be aware that ACBPS is now enforcing the requirement that every supplier must be declared on a separate air waybill.  The information will then be communicated via the cargo report to ACBPS so they can carry out a proper risk assessment and facilitate the clearance of the cargo.

All shipments arriving into Australia for one consignee that have multiple suppliers must now be shipped individually on separate air waybills from each supplier. Multiple suppliers cannot be consolidated into the same consignment under one air waybill. Preparation for assembly shipment orders must adhere to the requirement that only one supplier/consignee is permitted per air waybill.

Further Information on these changes can be found on the ACBPS website by clicking here or to view ACN 2013/20 click here.

If you would like to learn more about compliance on assembly shipment orders for multiple suppliers, please contact your local Customer Service team or your dedicated FedEx Account Sales Executive.

Increase in New Zealand Customs Service Transaction Fees and Ministry for Primary Industries Biosecurity

The New Zealand Customs Service and the Ministry for Primary Industries have increased their transaction fees and biosecurity levy rates to support the shared cost of implementing Tranche 1 of the Joint Border Management System (JBMS). Tranche 1 is the first phase of the JBMS program which includes the setting up of the Trade Single Window & introducing new sophisticated risk assessment and targeting tools.

JBMS is a joint initiative by New Zealand Customs and the Ministry for Primary Industries to modernize and integrate New Zealand’s border clearance processes. JBMS will enable the two agencies to share processes, data and technology and this will lead to more effective, efficient and consistent processing of people, goods and craft.

Effective August 1, 2013, new Customs transaction fees and MPI biosecurity levy rate including Tranche 1 costs are as follows:

 

 

Import Entry Charges

Current Fee (incl GST)

New Fee (incl GST)

Increase

Import Entry Transaction Fee

$25.30

$29.26

$3.96

Biosecurity Entry Levy

$12.77

$17.63

$4.86

Total Import Entry Transaction Fee (IETF)

$38.07

$46.89

$8.82

       

Export Entry Charges

Current Fee (incl GST)

New Fee (incl GST)

Increase

Export Entry Transaction Fee

$14.56

$17.94

$3.38

 

All figures are GST-inclusive unless otherwise stated.

Full information on the increased fees and charges can be found on the New Zealand Customs Service and Ministry for Primary Industries websites respectively:

• http://www.customs.govt.nz/features/jointbordermanagement/Pages/default.aspx
• http://www.biosecurity.govt.nz/regs/fees-and-charges

New Korea Customs Regulation on Bonded Transportation

Effective July 1, 2013, Korea Customs promulgated a new regulation prohibiting express carriers from transporting express shipments to normal bonded warehouses before customs clearance completes. Special bonded areas and Free Trade Zones are exempt from this regulation, but express shipments designated for other areas should be kept at the express carrier’s own warehouse during the clearance process. 

In light of the new regulation, FedEx Express recommends consignees in Korea to use a FedEx designated broker to clear express shipments if those shipments are transported to anywhere other than special bonded areas or Free Trade Zones. If consignees want to use another customs clearance broker to clear their express shipments, they still must keep their shipments in the FedEx Express warehouse during the clearance process and an additional storage fee will be imposed starting from the 4th day of its arrival in the FedEx warehouse.

Indonesian Custom Clearance Requirement

In order to minimize customs clearance delays when shipping to Indonesia, we would like to remind all customers to provide all the necessary and appropriate inbound documents for their shipments.

We also would like to encourage all customers to read the clearance requirement and information summary below prior shipping into Indonesia.

 

Value

Weight

Type

Documentation Required

Clearance Charges

No Limit > 100 Kg Extended Formal Entry
  • Taxpayer Identification Number/NPWP
  • Importer Identification Number/APIT
  • Power of Attorney/POA
  • Customs Identification Number/NIK
  • Other required licenses
  • Bank Charge (IDR 50,000)
  • Advance Fee (2.0% of Duties & Taxes)
  • Handling Charge (based on applicable weight break)
  • Admin Charge (IDR 40,000)
  • VAT (10% Handling Charge & Admin Charge)
  • Warehouse Charge (based on applicable weight break)
  • Additional charges will be applied for shipments selected by customs for physical inspection of content
>USD 50 < 100 Kg Simplified Formal Entry
  • Taxpayer Identification Number/NPWP
  • Importer Identification Number/APIT (Tax/PPh - 2.5%)
  • Without Importer Registration Number/APIT (Tax/PPh - 7.5%)
  • Without Taxpayer Identification Number /NPWP (Tax/PPh - 15%)
  • Bank Charge (IDR 50,000)
  • Advance Fee (2.0% of Duties & Taxes)
  • Handling Charge (IDR 250,000)
  • Admin Charge (IDR 50,000)
  • Tax / PPh (2.5% / 7.5% / 15% of Duties & Taxes)
  • VAT (10% of Advance Fee, Handling Charge & Admin Charge)
  • Warehouse Charge (if being caged > 3 days and based on applicable weight break)
<USD 50 <100 Kg Deminimis

 

  • Handling Charge (IDR 50,000)
  • VAT (10% of Handling Charge)
No Limit > 100 Kg Free Trade Zone - P20
  • POA, Customs Release Permit from FTZ
  • FTZ Import Declaration
    Note:
    Consignee prepares the Customs Release Permit and submits it to FedEx to clear the shipment from customs
  • Warehouse Charge (if being caged > 4 days and based on applicable weight break)
No Limit < 100 Kg Free Trade Zone - P35
  • MoU (Memorandum of Understanding) with FedEx ID – annually renewed
  • POA – monthly renewed
    Note:
    FedEx Broker prepares the Customs Release Permit and clears the shipment from customs
  • Warehouse Charge (if being caged > 4 days and based on applicable weight break)
No Limit No Limit PP8 - Diplomatic Bag
  • Import Declaration (PP8) endorsed by Ministry of Foreign Affairs
  • POA
  • Handling Charge (IDR 250,000 if weight : 1-100kg)
  • Admin Charge (IDR 40,000)
  • VAT (10% of Handling Charge & Admin Charge)
  • Warehouse Charge (if being caged > 3 days and based on applicable weight break)

 

  • Indonesian Customs requires labeling products in the local language (Bahasa) for importing consumer goods.
  • No Commercial Value (NCV) or 0 is not an acceptable value.
  • All non-document shipments must have an original Commercial Invoice. Multiple piece shipments also require a packing list clearly stating the contents of each piece and a Commercial Invoice should be itemized so Customs can match the packing list to the Commercial Invoice. It is recommended for the shipper to provide the harmonized system (HS) code on the Air Waybill & Commercial Invoice to support the clearance process.
  • USED products/shipments, regardless of value and weight, are subject to Extended Formal Entry Clearance and require a Permit from the Ministry of Trade.
  • Shipments weighing over 100kg are not allowed for individuals. Consignee must be Indonesian legal entity to receive shipments over 100kg.
  • Temporary import requires a Letter of Application for Temporary Import from the consignee addressed to the Chief of Customs explaining the details of the commodity, purpose of the import and the date when the shipment would be re-exported. The consignee needs to attach the exhibition schedule and other related paperwork required by customs. The consignee is requested to provide a Bank Guarantee that equals 100% of the total duties and taxes incurred for the shipment and a refund will be provided after re-exportation.

NOTES:

  • Seeds require an Import Permit/License from the Department of Agriculture and are subject to plant quarantine regulations (CITES).
  • Mobile phones, cell phones, and handheld computers are prohibited as personal shipments.
  • Regulations require that the importation of controlled items (food and beverages, traditional medicine, supplements, cosmetics, clothing, foot wear, electronics, mobile phones, cell phones, handheld computers and toys) can only be processed by registered importers with a special license from the Ministry of Trade. Failure to provide the license can result in return of the shipment.

As always, customers are reminded of the need to ensure your compliance with Indonesian customs laws and regulations, together with FedEx terms and conditions. Please contact your local Sales Team or Customer Service team if you have any questions.

Tips on Shipment Documentation Preparation and Import/Export Customs Declaration

China airport securities and customs authorities have tightened security inspections and checking of customs declarations for import and export shipments.

Please note the following tips to ensure smooth customs clearance and on-time shipment delivery:

  • Comply with the regulations and procedures set out by the authorities;
  • Prepare your shipment and documentation in advance, making sure all the information provided is accurate and valid;
  • Ensure that the details on your shipping documents match the items in your shipment.

    * Fill in all the necessary information – for example:
    - full and proper name of the commodities or items
    - accurate descriptions of the commodities or items
    - piece quantity, price, currency, weight, HS code, and payment settlement information about your shipments
    - contact details such as the mobile phone number of the shipper or recipient
  • Contact our Customer Service Team in advance if you have any special requirements regarding declaration for your low-value shipments.

*Failure to do so will result in shipments being caged by the China Customs and Aviation security authority. The shipper will bear legal responsibility for any inaccurately declared items.

Safety is our highest priority. Undeclared or mis-declared dangerous goods (DG) represent a danger to our customers and employees. Undeclared or mis-declared DG shipments will be investigated and appropriate action will be taken.

We thank you in advance for complying with the necessary requirements before sending your shipments.

Increase of Informal Entry Limits for Shipments imported into the U.S.

The U.S. Customs Border and Protection (CBP) has announced an increase in the value threshold for informal entry from US$2,000 to US$2,500. This final rule was published in the Federal Register on December 6, 2012, with an effective date of January 7, 2013.

Customers will no longer be required to have a surety bond on merchandise under US$2,500 and there will no longer be a minimum Merchandise Processing Fee (MPF) of US$25. Customers are advised, however, to have the shipment value clearly stated on the air waybill and commercial invoice in order to facilitate clearance under the new arrangement.

CBP also proposed to remove the language requiring formal entry for certain articles that were formerly subject to absolute quotas under the Agreement on Textiles and Clothing. This is because CBP no longer requires formal entries for these articles.

With this new rule, you can now expect smoother and faster customs clearance for your shipments to U.S. For details of this final rule, please refer to the Federal Register published on December 6, 2012.

New Requirements for Lithium Battery Shipments

FedEx strictly adheres to the International Air Transport Association (IATA) and International Civil Aviation Organization (ICAO) regulations and takes very seriously the safe transport of all shipments. To ensure safe delivery, all lithium battery shipments must be compliant with the new regulations set forth by the 2013 IATA Dangerous Goods Regulations, starting from January 1, 2013 onwards.

Key highlights of the new requirements are as follows.

Lithium Ion Batteries Section IA (UN3480, P.I. 965):

  • Shipper’s Declaration must contain net weight
  • UN Specification packaging, Packing Group II standards, is required
  • Shipment must include Class 9 label
  • DG surcharge applies

Lithium Ion Batteries Section IB (UN3480, P.I. 965):

  • Shipper’s Declaration and package must contain gross weight
  • Inner packaging and strong outer packaging must be used
  • Shipment must include Class 9 label and IATA lithium battery label
  • DG surcharge applies

Lithium Ion Batteries Section II (UN3480, P.I. 965):

  • No Shipper’s Declaration
  • Inner packaging and strong outer packaging must be used
  • Shipment must include IATA lithium battery label
  • The statement of “Lithium ion battery in compliance with Section II of PI965” must be indicated on the air waybill, when an air waybill is used.
  • No DG surcharge

Lithium metal batteries Section IA (UN3090, P.I. 968):

  • Shipper’s Declaration must contain net weight
  • UN Specification packaging, Packing Group II standards, is required
  • Shipment must include Class 9 label
  • CAO label is required
  • DG surcharge applies
  • Shipper must be on Section I (IA/IB) preapproved list

Lithium metal batteries Section IB (UN3090, P.I. 968):

  • Shipper’s Declaration and package must contain gross weight
  • Shipment must include Class 9 label and IATA lithium battery label
  • Inner packaging and strong outer packaging must be used
  • CAO label is required
  • DG surcharge applies
  • Shipper must be on Section I (IA/IB) preapproved list

Lithium metal batteries Section II (UN3090, P.I. 968):

  • No Shipper’s Declaration
  • Inner packaging and strong outer packaging must be used
  • Shipment must include IATA lithium battery label and FedEx Section II label
  • The statement of “Lithium metal battery in compliance with Section II of PI968” must be indicated on the air waybill, when an air waybill is used.
  • No DG surcharge
  • Shipper must be on Section II preapproved list

Additionally, the weight limit for Lithium batteries packaged with equipment Section II and Lithium batteries contained in equipment Section II has been limited to 5kg/package.

Lithium ion and lithium metal batteries shipped under Section I of the relevant packing instruction are fully regulated dangerous goods which must be correctly identified, classified, packaged, marked and labeled. A Shipper’s Declaration for Dangerous Goods must also be completed and signed by a trained shipper.

FedEx will not accept shipments that do not comply with the new requirements and shipments of any recalled, damaged, waste or defective lithium batteries, or any electronic product with such lithium batteries, such as laptop computers.

To view the full requirements, please click here to view the Lithium Battery Flow Chart or here for the IATA Lithium Battery Guidance Document [in English only].

ShowLocal Regulatory Update