Landed costs
The following page explains landed costs, the Digital River landed cost feature, how to apply them to orders, and what attributes represent them in the API.
Landed costs, sometimes called fully landed costs, represent the entire cost a customer must pay to purchase a physical product from one country and have it shipped to an address in another country. It includes shipping, taxes, and duties.
Not all of these costs are present in every order. The landed cost calculation only supports products in a tax-exclusive price list.
Landed costs occur whenever you ship an order containing physical products from one country to another. The exception is the European Union, where shipments between countries are exempt from duties.
Digital River provides an estimated landed cost for you to display to the customer and adds the cost to the order total. Digital River remits those landed costs to you.
Your fulfiller relays the order to your carrier, who completes the customs paperwork, ships the package to the destination country, pays the duties and taxes on behalf of your customer, and invoices you for performing the service.
To take advantage of the landed cost feature, you'll need to complete the following steps:
Once you configure and set up a product for landed costs, we calculate, collect, and apply landed costs to orders that contain physical goods and are shipped cross border to approved countries.
Verify your fulfiller ships packages outside their country (not all fulfillers provide this service).
Verify your carrier offers this service. In other words, does the carrier prepay the landed costs on behalf of the customer and send the invoice to you.
Provide your Account Manager with a list of the ship from and ship to countries for which you want to enable the collection of landed costs.
Sign an addendum in your Digital River contract to enable landed costs.
Define the cross-border patterns (that is, the ship-to or ship-from countries) where you want to collect landed costs.
Provide samples of completed customs forms to Digital River's Compliance department for approval.
Ask your Account Manager to enable landed costs. Before you use the Landed Costs resource, Digital River must enable landed costs. If the landed cost is not enabled, the Landed Cost Shipment Method won't appear in Global Commerce.
To enable landed costs from Global Commerce:
You need the Account Manager role in Global Commerce to perform this task.
Sign in to Global Commerce.
If your company has more than one site, select the site from the Sites field. If your company has only one site, Global Commerce automatically populates the Site field.
Select Administration, select Site, and click Configure Site Settings.
Click the Fulfillment tab and scroll down to Landed Cost Shipment Methods.
Select Enabled and then click Save.
To use the landed costs feature, you must set the price list to tax exclusive. When you set the price list to tax-exclusive, the shippingAndHandling value is also tax exclusive.
You need the Pricing Manager role to perform this task.
From Global Commerce, select Catalog, select Pricing & Plans, and click Manage Price Lists. The Price Lists page appears.
Complete the search fields under the Search and Filters tab and then click Search
to locate the specific price lists. The results appear in the Price Lists list.Click the link for the price list under the Name column. The Price List Details page appears.
Scroll down to Currencies and click Edit. The Edit Price List Currency page appears.
Select the currency you want to modify from the Currency dropdown list.
Select No from the Prices Include value Added Tax (VAT) dropdown list. When you select No, the price does not include VAT (tax exclusive).
Click Save.
When creating a product for landed costs in Global Commerce, from the Product Settings step, you must:
Select the Product Classification Type under Export Controls.
Select the appropriate product classification from the list.
Specify the Harmonized System code in the Harmonized Tariff Schedule/Schedule B Number field.
Complete the physical settings under Physical.
Select the Enable Landed Cost check box.
Complete the fields under Product Fulfillers.
The following tables list the landed costs parameters. Note that you are responsible for remitting the duty and the importer of record tax on behalf of the customer.
Parameter | Type | Description |
| | The state of landed cost. |
| object | The sum of import taxes and duties for all line items. |
| | The sum of import taxes and duties in locale currency format (for example, USD 19.14). |
| object | When the price list is tax inclusive, the shipping and handling fee is tax exclusive and applied against the product and the shipping cost. |
Parameter | Definition | Description |
| Object | VAT or other sales tax accessed on the transaction. |
| | The VAT or other sales tax accessed on the transaction in locale currency format (for example, USD 7.56) |
| Object | When a customer purchases products online, one or more of the products may not originate in the country the customer resides in, and therefore are subject to a customs duty when importing transported across international borders. When goods are not shipped domestically (within the customer’s country) or within a single customs union, such as the European Union, the customer is liable to pay any inbound duties which the customer’s local customs authority deems appropriate. |
| | The sum of duties in a locale currency format (for example, USD 5.29). |
A Cart or an Order has a landedCostState attribute, which provides information about the status of landed cost.
The customer must prepay the landed costs.
Digital River automatically calculates the landed cost and includes it in the Cart or Order when the landed cost is PREPAID.
The landedCostState of the Cart is enumerated by the following values:
NOT_ELIGIBLE–The current cart is not eligible for landed cost calculation.PREPAID–The current cart is eligible for landed cost calculation, and the landed cost will be prepaid.VIEWED_NOT_ELIGIBLE–The landed cost state wasELIGIBLEorPREPAID, then became not eligible due to a change in the order that triggered the status to change toVIEWED_NOT_ELIGIBLE. For example, the customer changed their shipping address, added a line item, or removed a line item.ERROR–Failed to calculate landed cost. This occurs when the integration service is unavailable.
The landedCostState of the Order is enumerated by the following values:
NOT_ELIGIBLE–The landed cost for the requisition is not prepaid.PREPAID–The landed cost for the requisition was prepaid.VIEWED_NOT_ELIGIBLE–The landed cost for the requisition is not prepaid.ERROR–The landed cost for the requisition is not prepaid.
