The FedEx that everyone has come to know and love is actually a group pf companies that operate under the umbrella of the FedEx corporation. The four companies that comprise FedEx corporation are:
FedEx Home delivery is part of FedEx Ground. Clarification of this organizational structure will help home residents understand why they cannot pick up the FedEx home delivery package at the FedEx Express office and why you cannot drop a home delivery package at a FedEx drop box.
Home residents are often confused about “these rules” but we are here to help.
We came across a very nice article by Blissfully Domestic that performed a comparison of shipping costs from these three carriers. The conclusion was that there was little difference in cost between the three carriers. We don’t entirely agree with that conclusion. That all depends on who you are and how much you ship. The fact is that businesses that have greater volume get a greater discount that those that do not. However, from the perspective of a home office ebay or ebay type shipper that is probably the case. The article by Blissfully Domestic appears to be targeted for shoppers and not shippers, anyway. In effect Blissfully Domestic would appreciate it very much if you got your shopping done early and did not wait for the last minute. In any case we think this article has merit and we recommend it.
Below is a table of different shipping services available from DHL. DHL domestic service is currently in transition because they are in the middle of a deal that will effectively outsource DHL domestic air service to UPS. This can be good or bad depending on the shipping rates that you have with DHL and how much you value UPS services-DHL customers will be getting UPS service for DHL prices.
On the international front, DHL is the leader in terms of reach, pricing and service. They have had hubs established worldwide before Fedex and UPS and their pricing and service reflect this advantage. Their international air service consists basically of three types of services: international same day, international document delivery and international package delivery. When shipping international packages by air this is all you need. Most time critical packages from a business standpoint are documents and do not go through customs. The ability to bypass customs means that the delivery is limited by flight arrival and sorting times. A separate service for documents insures that documents are streamlined through flight arrival into distribution.
DHL international freight services have a lot more variety and reflect the far reaching presence that DHL has around the world. Shippers who use International Freight Services are usually large shippers working with international shipping consultants that help them arrange the best freight services for their business. DHL international freight services may also be of some use to international movers or international moving companies who may be moving large pieces of furniture and the like from the United States worldwide.
DHL offers many free shipping resources that can be useful to the novice and experienced shipper alike. A little known resource is the transit time tool. This can tell you how long it would take an international package to reach destination barring any hold ups in customs. The international shipping service guide is well organized and informative. The HTS/Schedule B numbers Tool is a great tool for finding Harmonized tariff codes and schedule B numbers.
We know from our surveys that small business shippers have specific concerns that they want addressed when looking for a shipping company to handle their shipping needs:
What are the shipping basics?
How to prepare a waybill?
What are the different services?
How should I pack my packages?
How do I arrange for a pickup?
What service(s) do I need for my business?
How can I get the best rate for that service(s)?
We have evaluated the DHL, Fedex and UPS small business centers for their ability to address these concerns in an easy to understand format.
Our overall impression… In our opinion UPS small biz center has the best combination of organization, ease of use and information value in their small business center. They use rich media in a way that enhances the information and address most of the concerns listed above in a way that help the small business shipper understand what UPS has to offer.
The Fedex small business center in an effort to add more value has made their small business center a little bit more confusing than necessary (see below). However we place them second in terms of value that the interface provides to the shipper because they address some money concerns of the small business shipper .
Finally the DHL small business center has a very simple interface (sometime less is more) to internal pages within their website that address small business shipper concerns. This interface addresses most of the above concerns fairly easily.
A word about rates…
Getting rates from a shipping company is the holy grail of the small business shipper. DHL indicates that they provide 10%discount for signup but it does not show the rates. Fedex offers several incentive discounts that eventually expire along with several co-promote specials but again no rate sheet. Finally UPS provides no indication of any discounts or rate sheets.
Sign up for all three
There is no law that say that a shipper cannot have more than one shipping account. We recommend signing up for an account with all three. Get access to the rates and compare the rates against the service. Use one carrier for one service that suits you and another carrier for the other. As your volume begins to grow renegotiate your rates base on your volume.
How to prepare a waybill?
After three clicks we were able to get to the page that provide information on how to prepare a waybill. Waybill Help
What are the different services?
From the small business center we were able to find the different services available DHL Services
However we were not able to find our way back to the small business home page after this.
How should i pack my packages?
Even though we were not able to work our way back to the home page, we were still able to find out about packing our packages from interface. Packaging
How do i arrange for a pickup?
Also we were able to find out how to arrange for a pickup. DHL Pickup
What service(s) do I need for my business?
No real consultation on my business delivery need.
How can I get the best rate for that service(s)?
The website does not show the rates without first signing in and getting and account but the customer is offered a flat 10% off rack rates when they sign up online. This however is no different form what an individual person would get for signing up. There is no expiration for this 10%. DHL Open an account
How to prepare a waybill?
Fedex has a shipping 101 guide that can easily be missed because they keep it under articles and FAQs section. In the shipping 101 they show some screen shots for filling out a waybill online. Fedex Shipping 101
What are the different services?
From the small business center we were able to find the different services available however you might miss it. After clicking on either Express, Ground or Freight you are directed to a page that looks like a advertisement. You are supposed click on the menu items on the right side of what looks like an advertisement and then click on the picture inside you can see the services. We find this very confusing but we are here to help. Here are the links. Fedex Express Fedex Ground Fedex Freight
How should I pack my packages?
Again we almost missed this because it falls under articles and FAQs section (sometimes people don’t realize that their question is an FAQ). However by now we are trained to look for things in the Articles and FAQ section. Packaging Options
How do I arrange for a pickup?
The page for pickup can only be accessed with a Fedex account. However the shipper is told where to go to arrange for a pickup. Fedex Pickup
What service(s) do I need for my business?
They have a solutions tool that walks you through you needs and provides a recommended service. If the tool cannot provide a service then they provide a sales number. Fedex Solutions Tool
How can I get the best rate for that service(s)?
While Fedex does not provide specific rates they do offer several interesting discounts and co-promotions.
15% Discount when you sign up only on FedEx Express® shipment
for 4 months when you use ship manager. After the 4 month period it will reduce to 10%. This is what is known as an incentive to sign up. See our Free Report for Small Business shippers about to sign an agreement.
Now through Dec. 31, 2008, receive 55% off your base rates on LTL (less-than-truckload) shipments of 150 lbs. or more each time you ship within the contiguous U.S., with FedEx Freight or FedEx National LTL.
5% off eligible shipments paid with American Express
Amazon Services will offer FedEx customers five months waived subscription fees, a value of $199.95, to Amazon Service’s Pro Merchant Program.
QuickBooks users can save money by registering for special rates on FedEx Express and Ground shipping.
FedEx and Stamps.com have teamed up to offer FedEx customers a $100 savings with Stamps.com Premier.
UPS SMALL BUSINESS CENTER
UPS has two websites directed at the small business shipper. UPS small biz and the UPS whiteboard. We recommend that you stay away from the UPS whiteboard unless you have allot of time to watch cartoons and click on graphics that do not provide solid information. Stick with the UPS small biz center. The shipping demo video gives very good insight into how their user interface looks. It is informative and worth the time to watch.
What service(s) do I need for my business? UPS also has a solutions finder designed to help you zero in on what shipping services or products you will need. UPS Solutions Finder
How can I get the best rate for that service(s)?
No indication of rates or discounts. UPS OPEN AN ACCOUNT
The table below shows the variety of services available by DHL, Fedex and UPS for shipping non-freight items internationally. Let’s take a moment to examine the different services available.
Same Day
“Same day” delivery is available from all three shippers. This service really means that the package will be on the next available flight. If the package is a document and not-dutiable there should be no problem getting the package off the plane and to its destination as if it were hand carried.
Document…to be or not to be…
For international packages customs clearance is an important component of package arrival time. Documents that do not need customs are limited just by flight arrival and delivery. DHL recognizes this and offers a service focused on document or non-dutiable items. The separate treatment of these items contributes to minimal delivery delays. One might imagine that there are probably certain times of day, using DHL Same Day Service, Fedex International Next Flight or UPS Express Critical SM, when a package might have arrived at the same time as with DHL International Document Service at but at a reduced cost.
Are Specialized Services Always Needed?
Along the same lines let’s examine the additional specialized services offered by Fedex and UPS, one wonders if the “expedited” package would have arrived at the same time using DHL Document Service if the package was just a document. While there are definitely instances where dutiable items have time critical arrival deadlines, most time critical international packages are business documents with original signatures. Any other type of documents can be sent by email or facsimile. To pay a premium to insure that documents arrive at 10:30 in 2-3 business days should be considered carefully when a less expensive service DHL International Documents Service may suffice.
An Illustration…
In order illustrate the point let’s take a package leaving New York destined for Germany. The package is picked up in New York by 5PM EST Tuesday (11:00PM German Time Wednesday). This package then leaves Newark at 12:00AM EST on Tuesday Evening (6:00AM German Time Wednesday) arrives in Germany at 5:00 PM Wednesday night where it will be sorted and ready to leave for delivery at 5:30AM German local time Thursday. The chances are very good that a non-dutiable document would arrive in Germany from New York by 10:30 AM on the second day even without the premium service. This should be true if you used DHL International Document Service, FedEx International Economy or UPS Worldwide SaverSM. Of course this all depends on timing and connections however this Gedankenexperiment allowed plenty of time for connections and presumably these billion dollar package carriers have worked all of that out anyway. All three of the carriers have a time arrival estimator which is really a calculation using their established flight plan arrival schedules. This will give you a good idea of when your carrier believes a non dutiable item such as a document would arrive. If there is no advantage in days for using the premium service then it is up to you to decide if you want to pay for the “premium delivery time”.
Dutiable Items and Arrival Time Guarantees
Arrival times for documents or non-dutiable items are usually pretty certain as they do not have to go through customs clearance. Dutiable items are subject to customs clearance and therefore always at risk for delivery delay. While the package may arrive at a specific time at your country, if the customs does not clear it in a timely fashion then the delay is inevitable, in which case the “fault” for the delay is not due to the carrier but to “third party government” influences. Customs delays are almost always paper work problems which can usually be traced back to the shipper. For this reason, the chances of being able to collect a refund for unfulfilled premium service are very small.
The Moral of the Story…
I am reminded of a story that I read in The Undercover Economist by Tim Harford where he outlines how a premium cappuccino does not cost the coffee shop much more than a regular cappuccino but the coffee shop can charge a 25% premium on it because of the perception of additional benefit. A little bit of digging on the part of the shipper may help uncover what flights a package would be on and what service level would be most effective for the shipper. Of course the shipper that actually does that research is few and far between and the carriers know and understand this and so business as usual… Knowledge is power but only if you go after it.
We have reviewed the international shipping guides fro DHL, Fedex and UPS for use by a novice shipper. We have evaluated these guides on the following points:
Content Layout
Ease of understanding for a novice shipper
“How To” instructions provided
Links to Shipping resources openly available without registration.
In our estimation DHL provides the best How To Ship International Guide in the form of their “DHL Guide to Exporting” from all four standpoints. This is primarily because their document answers the following questions in a manner that is easy to understand and complete:
What do you need to start?
How do I distinguish between Document and Non Document item?
What forms are the basic forms that I need?
What kind of shipping resources are available to me?
What services do you provide?
The “Fedex International Shipping Reference Guide” comes in second and the “UPS Navigate International Shipping With Confidence Guide” comes in at a distant third.
The “DHL guide to exporting” differentiation between Document and Non-document item helped push it over the top. Fedex uses a flow chart to differentiate between Document and Non-Document packages that we believe would be confusing to a novice shipper.
Finally DHL won first place because of its inclusion of shipping resource links that are avialable to the public without first registering. These include their “Trade Document Library” which is a treasure trove of additional document that may be needed to export to your country besides the basic documents and “Interactive Classier” for finding Harmonized B and Schedule B numbers. The Fedex guide does not have their own classifier they refer you to an external government site. UPS make referenced to a TradeAbility tools to find harmonized tariff codes but they do not provide a link to it.
These instructions are meant to be a guide to understanding how to
determine what paperwork is needed to get your commodity into
your destination country of interest and thus empower you. DHL, FEDEX
and UPS all have customs clearance departments. The necessary
commodity research for your shipment can always be performed by them.
The Most Important Part of Shipping Internationally is The Paperwork.
1. Find out if your shipment a document or a commodity.
This is not as obvious as you may think at first glance.
Mexico has 9 classifications for documents and Brazil has over 25 (including CDs, Photographs, Diskettes,
Microfilm, Microfiche, Sepia portraits).
Once you know if your shipment is a document or commodity you begin to assemble the necessary paperwork.
2. If your shipment is a commodity check to see if there are any prohibitions or restrictions associated with your commodity.
This step will help you determine if your commodity can enter the country (2a), your commodity requires a special transportation method or paperwork (2b), your commodity requires import licenses or special declarations on the invoice (2c).
9. Fill out a shipper’s export declaration using the harmonized tariff code previously obtained.
10. Prepare package according to country specific size and weight limitations. Make sure that package
contents are consistent with prepared paperwork.
11. Prepare a packing list.
12. Assemble all paperwork:
Commercial or Proforma Invoice
Packing List
Certificate of Origin (if needed)
Shipper’s Export Declaration (if needed)
Export Permits (if needed)
13. Find out from your previous research of you have a choice between air shipment or freight. Some commodities need to be sent by freight (i.e. perfume).
14. Choose a carrier.
15. Prepare an Airway bill for air shipments or a Bill of Lading for freight.
16. Indicate to carrier when preparing airway bill or bill of lading whether duties and taxes will be paid by the shipper or the consignee (shipment recipient).
Note: This is the most common cause of customs delay of international shipments by inexperienced shippers.
17. Have carrier pick up package with paperwork.
18. Track package and wait to hear from your consignee of its arrival.
France is a member of the European Union and the world trade organization. As a result France enjoys normal trading relations with the United States.
Quotas The French government imposes quotas on some commodities.
Basic Documents
Certificates of Origin - Textile products with a CIF over 45 Euros require a Certificate of Origin with some exceptions.
Certificate of Origin Form A - Goods under claiming reduced duty or exemption of duty may require A Certificate of Origin Form A.
Commercial Invoices - All dutiable commodities relating to commercial transactions between companies and companies; companies and individuals, regardless of the value must show commercial invoices with a translated copy.
Dangerous goods certification may apply.
Airway Bill or Bill of Lading
Import permits - Permits may be required from Service des Titres du Commerce Exterieur (SETICE).
Import Duties
Customs Valuation Non-document commercial goods must be declared according to proper description.
Import Duties- Customs duties are, generally, an ad valorem rate (a percentage), which is applied to the transaction value (EUR Euro) or CIF of the imported goods based on the cost of the goods, insurance, and freight charges.
Excise Duties-There are excise taxes.
Import Taxes-In addition to duties , goods imported into France are also subject to a value-added Tax (VAT) which is generally charged at one of two rates:
The standard rate of 19.6% applicable to most manufactured goods
The reduced rate of 5.5%, applicable mostly to agricultural products and foodstuffs, original artworks and certain medicines.
Weight and Size Limits:
Maximum weight: 70.0 kg (150.0 lbs.) per package
Maximum length: 270.0 cm (108.0 in.) per package
Maximum dimensions: 419.0 cm (165.0 in.) per package, length and girth combined
This video is intended to be a primer on shipping international to Chile. It outlines the holidays to avoid, commodity restrictions,basic documents and provides important Chilean international shipping resource links.
Important Points on Importing into Chile from USA
Chile is a member of APEC and a Member of the World Trade Organization. It enjoys U.S.-Chile Free Trade Agreement similar to NAFTA and uses the Harmonized Tariff Code to determine value of import goods.
When importing goods a Customs Broker is needed for shipments valued greater than $500.00
The basic document required for shipping include (links below):
commercial invoice
certificate of origin
bill of lading
packing list
Consignees Tax ID identification number (RUT) and Company Formal Name (Razon Social) must be on Airway bill or Bill of Lading and Commercial Invoice.
Duties and Taxes
CIF is defined as Harmonized Tariff value + shipping costs +insurance
Import duties range between 0 and 6 percent applied on CIF for items qualifying as U.S. origin or 6% of CIF for almost all non-qualifying products.
Excise tax on alcohol and tobacco products do apply.
Luxury goods are subject to domestic excise taxes ranging from 30 to 70%.
Import Tax 19% of (CIF +Import Duty)
No Custom Fees
Samples are exempt from Duties
Gift will be assessed Duties and Taxes
Weight and size restrictions:
Maximum weight: 70.0 kg (150.0 lbs.) per package
Maximum length: 270.0 cm (108.0 in.) per package
Maximum dimensions: 419.0 cm (165.0 in.) per package, length and girth combined
In our opinion 
The 
