3. Select **Administration**, select **Site** and click **Configure Site Settings**.
4. Click the **Fulfillment** tab and scroll down to **Landed Cost Shipment Methods**.\
5. Select **Enabled** and then click **Save**.
### Setting the price list to tax-inclusive or tax-exclusive
Configuring your price list to be tax-inclusive or tax-exclusive is crucial when enabling landed costs in [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do). This setting determines whether VAT is included in your product prices or calculated separately, affecting how your customers see and understand pricing. Follow these steps to properly configure your price lists and ensure accurate tax handling on your site.
When you set the price list to tax exclusive or tax inclusive, the `shippingAndHandling` value is also tax exclusive or tax inclusive.
{% hint style="info" %}
You need the Pricing Manager role to perform this task.
{% endhint %}
1. Select **Catalog**, **Pricing & Plans**, and click **Manage Price Lists**. The Price Lists page appears.
2. Complete the search fields under the **Search and Filters** tab and click **Search**  to locate the price list. The results appear under Price Lists.
3. Click the link for the price list under the **Name** column. The Price List Details page appears.
4. Scroll down to **Currencies** and click **Edit**. The Edit Price List Currency page appears.
5. Select the currency you want to modify from the **Currency** drop-down list.
6. Choose one of the following options from the **Prices Include Value Added Tax (VAT)** drop-down list.
* Select **Yes** to include VAT in the prices.
* Select **No** to exclude VAT in the prices.
7. Click **Save**.
### Setting the shipping cost to tax-inclusive or tax-exclusive
Accurately configuring your shipping cost as tax-inclusive or tax-exclusive in [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do) is essential for transparent pricing and compliance with tax regulations. This setting aligns with the tax configuration of your currency in the price list, ensuring consistency across product pricing and shipping costs. Follow these steps to adjust your shipping cost settings according to your tax requirements.
1. Select **Administration**, select **Site**, and then click **Configure Site Settings**. The Configure Site Settings page appears.
2. Click the **Features** tab and scroll down to **Input Tax-Inclusive Shipping Cost**.
3. Choose one of the following options for Tax-inclusive Shipping.
* Toggle **Tax-Inclusive Shipping** to **On** to enable tax-inclusive shipping costs. When you turn on the Input Tax-Inclusive Shipping Cost toggle, it will follow the tax-inclusive/exclusive settings of the currency in the price list. For example, if you set USD as tax-exclusive and TWD as tax-inclusive, turning on Input Tax-Inclusive Shipping Cost will make the shipping cost for USD tax-exclusive and TWD tax-inclusive
* Toggle **Tax-Inclusive Shipping** to **Off** to enable tax-exclusive shipping cost. Turning off the Tax-Inclusive Shipping Cost toggle will make the shipping cost for both USD and TWD tax-exclusive.
4. Click **Save**.
### Creating a product for landed costs
Accurately configuring products for landed costs is vital for financial transparency and regulatory compliance when managing an eCommerce platform. This section guides you through creating a product for landed costs in [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do), ensuring that all necessary attributes such as product classification, Harmonized System codes, and physical settings are correctly established. Follow these steps to streamline your landed cost calculations and improve the efficiency of international shipping operations.
When [creating a product](https://help.digitalriver.com/help/gc/Products/Products/Create-product.htm) for landed costs in [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do), from the [Product Settings step](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm), you must:
1. Select **Catalog**, select **Products**, and then click **Create Product**. The Product Setup page appears.
2. Complete the **Product Setup**, **Supported Locales**, **Catalogs and Categories**, and **Product Options** steps, then click **Next** to access the Product Settings page.
3. Select the [Product Classification Type](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm#ProductClassificationType) under [**Export Controls**](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm#ExportControls). from the [Product Settings step](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm).
4. Select the appropriate product classification from the list.
5. When creating the product, specify the correct [Harmonized System code](https://www.trade.gov/harmonized-system-hs-codes) in the [**Harmonized Tariff Schedule/Schedule B Number**](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm#Harmonized) field.\
\
**Note**: An incorrect Harmonized System code may result in an inaccurate landed cost calculation.
6. Complete the physical settings under [**Physical**](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm#Physical).
7. Select the [**Enable Landed Cost**](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm#EnableLandedCosts) checkbox.
8. Complete the fields under [**Product Fulfillers**](https://help.digitalriver.com/help/gc/Products/Products/Product-settings.htm#ProductFulfillers).
### Triggering the landed cost feature
Triggering the landed cost feature ensures that all applicable duties, taxes, and fees are accurately calculated and displayed for international shipments. This operation is crucial for transparency, helping the merchant and customer understand the total cost of cross-border transactions. Below, we outline the necessary conditions and steps to activate the landed cost feature in your eCommerce platform.
Landed cost is calculated for orders with physical products shipped across international borders to an approved country. The exception is the European Union, where shipments between countries are exempt from duties.
More precisely, [landed cost is automatically calculated](#calculating-landed-cost) when you submit a `POST/carts` request, and all of the following conditions exist:
* Follow the guidelines for [mixed cart scenarios](https://docs.digitalriver.com/commerce-api/shopper-apis/cart/pricing/landed-costs/mixed-cart-support) for a mixed cart order containing [physical ](#creating-a-product-for-landed-costs)and digital products.
* The ship-from country and the ship-to country are different.
* An EU country is the ship-from country, and a non-EU country is the ship-to country. \
\
**Note**: Digital River does not support landed costs when shipping within the EU.
* The ship-to country is on our approved list.
* Product and shipping choice prices, including any applied discounts, are provided in the request.
* Each product in the order contains a [Harmonized System code](#creating-a-product-for-landed-costs) registered in our system.
{% hint style="warning" %}
The landed cost feature supports mixed cart orders. If a physical product is not eligible for landed cost calculation, the entire order will not qualify for landed cost.
{% endhint %}
### Calculating landed cost
Digital River makes an API call to a third-party service to calculate landed costs on [applicable orders](#triggering-the-landed-cost-feature). For each call to the service, we assess a fee. This fee is in addition to the other license or transaction fees that you may incur.
### Collecting landed cost
In the response, we provide an[ itemized breakdown](#how-digital-river-represents-landed-cost) of the duties and taxes comprising the landed cost and build these individual costs into the order total. Since your customers ultimately pay the full landed cost, we recommend you display this cost breakdown to them on your storefront.
Once the [cart is submitted](https://docs.digitalriver.com/commerce-api/shopper-apis/cart/submitting-a-cart), your fulfiller relays it to your shipper, who completes the customs paperwork, ships the package to the destination country, and pays the duties and import taxes on the customer's behalf. The shipper then invoices you the shipping costs.
### Handling calculation failures
A landed cost calculation may fail for several reasons. For example, a customer may attempt to ship a product to an embargoed country, or you might have improperly formatted the [Harmonized System codes](#creating-a-product-for-landed-costs) associated with the product. The [third-party landed cost calculation service](#calculating-landed-cost) may be unavailable in certain situations.
### Refunding landed cost
If you need to reverse the charges for orders with landed costs, we support full [refunds](https://docs.digitalriver.com/commerce-api/admin-apis/refunds) of the importer tax. If you want to offer partial refunds, contact your account representative.
## How Digital River represents landed cost
Digital River considers various parameters to ensure accuracy and compliance with international shipping laws when calculating the landed cost. These parameters include taxes, duties, and fees associated with importing goods. Digital River's landed cost representation helps to provide transparency and accuracy for both the seller and the customer, ensuring all costs are accounted for before purchasing. Below is a detailed explanation of the attributes representing the landed cost at both the order and line-item levels.
### Cart or order-level attributes
The cart or order-level attributes capture details about the overall landed costs associated with an order. These attributes show the import taxes, duties, and associated fees. The following table outlines each attribute and describes its significance.
| Attributes | Type | Description |
|---|---|---|
landedCostState | The state of landed cost. | |
importTaxAndDuty | object | The sum of import taxes and duties for all line items. |
formattedImportTaxAndDuty | The sum of import taxes and duties in locale currency format (for example, USD 19.14). | |
shippingAndHandling | object | The shipping and handling fee is tax exclusive and applied against the product and the shipping cost. |
| Attributes | Definition | Description |
|---|---|---|
importTax | Object | VAT or other sales tax accessed on the transaction. |
formattedImportTax | The VAT or other sales tax accessed on the transaction in locale currency format (for example, USD 7.56) | |
importDuty | 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 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. |
formattedImportDuty | The sum of duties in a locale currency format (for example, USD 5.29). |