Did you know: Disbursement

Our business customers do not only ship with us, but also regularly receive shipments delivered by DHL. As most of these shipments are sent on a DTU basis (import duties and taxes unpaid), they can ask DHL to automatically cover all import duties and taxes and bill for them later. This service is known as Disbursement. When a customer receives a DTU non-doc shipment, they are obliged to cover all import duties and taxes. However, to make the process quicker and more convenient, DHL can pay (disburse) the import duties and taxes on their behalf and then book these back to the customer. As a result, the customs process is accelerated, with DHL making prompt payment of relevant charges while the receiver defers payment until an agreed date or contractually defined payment terms. When DHL is requested to temporarily cover import duties and taxes on a customer’s behalf, the customer is charged for this service. In case the receiver is an unknown entity that we don’t have a business relationship with – e.g. a private consumer – DHL may still decide to advance the payment of import duties and taxes without the receiver’s consent. Since this approach involves a certain financial risk, a surcharge called Advance Payment is applied. The charging mechanism functions the same way as Disbursement, except the advanced amount is usually collected on delivery. This scenario usually occurs when customers order products online that are sent on a DTU basis. In order to prevent such shipments from getting stuck in customs or in our own warehouses, DHL advances the payment of the import duties and taxes on behalf of the receiver.