International Shipping & Compliance – Service Agreement Appendix

Part of the Logistics Service Agreement between FR-Logistics and the Client.

Effective Date: December 2025 (Revision 1.0)
Applies to: All FR-Logistics clients who ship internationally from our U.S. warehouse.

1. Who This Appendix Applies To

This Appendix applies to:

• Any Client requesting shipments from FR-Logistics in the U.S. to a foreign destination.
• Any shipment created under INCOTERMS DAP/DDU or DDP.

FR-Logistics may refuse or hold international shipments if compliance requirements are not met.

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2. INCOTERMS & Who Pays Taxes

For each international shipment, you must select an appropriate INCOTERM. Your choice determines who is responsible for duties, taxes, and other import-related charges.

DAP / DDU – Delivered at Place / Duties Unpaid

• FR-Logistics arranges transportation to the destination country.
• Your end customer (recipient) is responsible for import clearance.
• The recipient pays duties, taxes (GST/HST, VAT, etc.), brokerage fees, and any local import charges.

DDP – Delivered Duty Paid

• You, the Client, are responsible for all import-related costs at destination.
• This includes duties, taxes, brokerage fees, and handling charges.
• DDP service is only available if you meet all requirements defined in our ISCP (tax IDs, carrier/broker accounts, authorizations, etc.).

FR-Logistics does not assume tax liability under any INCOTERM.

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3. What You Must Provide (Compliance Data)

To ship internationally, you must provide accurate and complete customs data for each SKU. This information is used to clear your goods through customs in the destination country.

Required data per SKU includes:

• HS Code (tariff code) – 6–10 digit customs classification.
• Country of Origin (COO) – where the product was manufactured or produced.
• Declared value (USD) – per unit, honest and accurate; undervaluation is prohibited.
• Clear product description – commercial description, not internal abbreviations or codes.

Safety & regulatory documents (where applicable):

• SDS/MSDS (for chemicals or regulated materials).
• Battery documentation, such as UN38.3, for electronics or battery-powered goods.
• Any required certificates (FDA, FCC, CE, Health Canada, etc.) depending on the product and destination.

FR-Logistics relies on the information you provide and does not re-classify or independently validate your customs data.

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4. Extra Requirements for DDP Shipments

If you choose DDP, additional information and approvals are required to allow duties and taxes to be legally billed to you.

For DDP shipments, you must provide:

• A valid Importer Tax ID (e.g., BN for Canada, EORI for EU/UK, ABN, RFC, or similar).
• An active billing account with a carrier or customs broker (UPS, FedEx, DHL, etc.).
• Written authorization allowing FR-Logistics to use that account for duties and taxes.
• A public-facing shipping policy that clearly matches what you have requested from FR-Logistics (for example, if you advertise “DDP / all taxes included,” your instructions to FR-Logistics must also specify DDP).

If these requirements are missing or invalid, DDP may be refused, downgraded to DAP/DDU, or delayed until compliance is resolved.

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5. What FR-Logistics Is Not Responsible For

Customs & Tax Liability

FR-Logistics:

• Is not the Importer of Record (IOR) for your shipments.
• Does not pay or reimburse duties, taxes, VAT/GST/HST, or brokerage fees.
• Will not use its own EIN or U.S. tax IDs to pay foreign import charges.
• Is not responsible for incorrect HS codes, mis-declared values, wrong country of origin, or product seizures/fines caused by inaccurate data.

These responsibilities belong entirely to you, the Client.

Operational Scope

FR-Logistics is responsible only for direct operational errors that we cause (for example, a wrong label created by our team or damage while the goods are stored in our warehouse), and only up to the limits stated in your Logistics Service Agreement.

If you choose to override or stop a mitigation action (for example, you ask us not to intercept or not to return a package), you agree to take full responsibility for all resulting costs and consequences, including:

• Duties and fees charged to the recipient.
• Undeliverable package or return fees.
• Return shipping costs.
• Customer dissatisfaction or escalations.

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6. If You Don’t Meet Compliance Requirements

Failure to provide accurate or complete compliance information can result in delays, additional costs, or disruption of services.

Examples of consequences include:

• Missing Tax ID for DDP – Shipment may be downgraded to DAP/DDU or held until you provide the required information.
• Incorrect HS code, COO, or declared value – You are responsible for fines, penalties, customs delays, seizures, or reassessments.
• No duties/taxes billing account for DDP – Carrier systems may not allow DDP labels; only DAP/DDU will be possible.
• Contradiction between your public shipping policy and your instructions to FR-Logistics – You bear full responsibility for refunds, customer complaints, and reputation impact.

FR-Logistics may suspend or limit international shipping services if non-compliance persists.

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7. Documents Required for International Shipping Clients

Depending on your chosen setup (DAP/DDU or DDP), we require specific documentation before enabling or continuing international shipping services.

For All International Clients (DAP or DDP)

• HS code per SKU.
• Country of origin per SKU.
• Declared value (unit-level, in USD).
• Commercial product descriptions.
• SDS/MSDS and other safety documents where needed.
• Battery and dangerous goods documentation (if applicable to your products).
• Company registration documents.
• EIN or equivalent tax identifier.
• Contact details for your compliance or logistics contact.

Additional Requirements for DDP Clients

• Importer Tax ID (BN, EORI, ABN, RFC, etc.).
• Active customs billing account with a carrier or customs broker (UPS, FedEx, DHL, etc.).
• Written authorization to debit duties and taxes to your account for DDP shipments.
• Public shipping policy that clearly states DDP terms and aligns with the instructions you give FR-Logistics.
• Product catalog mapping SKUs to HS codes and declared values for customs.
• Any specific regulatory certificates required by the destination country or product category.

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8. Your Acknowledgment as a Client

By using our international shipping services, you acknowledge and agree that:

• You have read and understood the FR-Logistics International Shipping & Compliance Policy (ISCP) and this Appendix.
• You are solely responsible for the accuracy and legality of the customs information you provide.
• FR-Logistics is not the Importer of Record and does not assume customs or tax liability.
• You accept full responsibility for DDP shipments and for any consequences of incorrect or incomplete data.
• FR-Logistics may hold, downgrade, or refuse shipments if compliance requirements are not met.

If you have questions about these requirements or need help preparing your documentation, please contact our team before scheduling international shipments.