How to Use Landed Cost Engine

Overview

Landed Cost Engine allows you to achieve more accurate Shipping Rates in situations where shipments going over national borders are subject to duties & taxes. Using the Landed Cost Engines supports including the full duties & taxes in the amount charged to customers for DDP (Delivered Duty Paid) shipments or, optionally, display the charges to ensure customers are not surprised for DDU (Delivered Duty Unpaid) shipments.

Learn more about the ShipperHQ Landed Cost Engine

Add-On Subscription Required The ShipperHQ Landed Cost Engine requires an add-on subscription as well as a ShipperHQ Standard, Pro, or Enterprise account. Contact us to sign up or for more information.

Introduction to the Landed Cost Engine

Before the Landed Cost Engine feature can get up and running, you need to ensure you’ve finished preparing your products.

Requirements

Product Classification

In order to receive accurate duties & tax calculation you will need to ensure all SKUs you intend to ship internationally in your eCommerce platform’s product catalog have been updated with HS Codes (Harmonized System codes of the Harmonized Tariff Schedule or HST used to classify imports and exports).

ShipperHQ provides product classification services. This service is billed at a one-time, per-SKU rate. Contact us for further information or submit your product catalog using the process below and we’ll provide you with a quote.

Submit Products for Classification

  1. In the Features section of the ShipperHQ dashboard, open the Landed Cost Engine settings by clicking the cog icon on the Landed Cost Engine card
  2. Click “Download CSV Format” to download an example CSV file
  3. Fill out the CSV file with the details from your product catalog
  4. Once you have a completed CSV of your product catalog, click the “Upload CSV” button and select the CSV file to upload
  5. ShipperHQ will email you within 2 business days with the cost for classification of your catalog
  6. Respond via email to confirm that you accept the quote and this will be charged to the default payment method on your ShipperHQ account (or call to arrange alternate payment)
  7. Once payment has been made, ShipperHQ will confirm for you that classification is under way
  8. As soon as classification is complete, you’ll be emailed a CSV file containing the HS Codes for the SKUs you uploaded or notification of any issues preventing classification for any specific SKUs
  9. Refer to the section below to assign HS Codes to your Products within your eCommerce platform

After initial classification, you can follow the same process for any subsequent classification but only need to submit SKUs which have not yet been classified.

Assigning HS Codes to Products

Once you have your product HS Codes, you’ll need to update your products with these codes to ensure ShipperHQ can retrieve them when generating shipping rates.

Magento 1, Magento 2, or WooCommerce

When the ShipperHQ extension is installed, it adds a new HS Code product attribute. If this attribute is not available, ensure you’re running the latest version of the ShipperHQ extension.

More about ShipperHQ Attributes for Magento
More about ShipperHQ Attributes for WooCommerce

Shopify

HS Codes can be set on products or product variants using the “Edit Shipping Properties” option when editing a product within Shopify or via any other Metfields editor. Learn More

BigCommerce

HS Codes can be set as values of the Shipping Group field on products and product options in BigCommerce by prefixing the HS Code with “^HS:”. For example, “^HS:03.07.40” for HS Code 03.07.40. Learn More

Add On Subscription

The ShipperHQ Landed Cost Engine is available for merchants on the ShipperHQ Standard, Pro, or Enterprise plans and requires that an add-on subscription is paid in addition to your ShipperHQ base subscription. Contact us to sign up or for more information.

Configuring the Landed Cost Engine

Once your products are classified and ready, you can finish configuring the Landed Cost Engine functionality in ShipperHQ.

  1. In the Features section of the ShipperHQ dashboard, open the Landed Cost Engine settings by clicking the cog icon on the Landed Cost Engine card
  2. Under Duties and Taxes Display select your desired option:

    • Combine the duties and taxes into your shipping rate: does not show the amount of duties & taxes charged to customers but instead simply includes the rate with the shipping rate
    • Show the duties and taxes separate from from the shipping rate: Includes duties & taxes in the amount charged for shipping but displays the amount being charged for duties & taxes separately to the amount shown for shipping
    • Record the duties and taxes on order comments only, don’t show to the customer: the amount charged for shipping will not include duties & taxes and the duties & taxes will not be shown to customers. Instead, the duties & taxes will be saved as an order comment visible within your eCommerce platform’s admin panel.Note: only available for the Magento eCommerce platform
  3. Click the “Apply” button to save your settings
  4. Ensure you’ve set HS Codes on your products in your ecommerce platform as described above
  5. Click the Enable/Disable toggle to enable the Landed Cost Engine

Compatible Carriers

The ShipperHQ Landed Cost Engine is compatible with any carrier which provides international services except for those carriers which support duties & tax calculation themselves within ShipperHQ. For these carriers (Zenda and FlavorCloud), duties & taxes generated by the ShipperHQ Landed Cost Engine will not be applied to the shipping rates returned since these rates include duties & tax already.

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