The billing person is responsible for paying the costs associated with a shipment and may not necessarily be the sender or recipient. They are also responsible for resolving any issues with customs fees and may be liable for expenses associated with delivery and returns. To avoid billing errors, senders can require the use of an account or authorization number.
A billing person is an entity named in the shipping documentation responsible for the costs associated with the shipment. In case the bill is not paid, the transport company will approach the person responsible for the collection first to discuss the situation and try to recover the payment. This information may be included on packing slips, shipping labels, bills of lading, and other documents associated with a shipment. It is also entered into the sender’s computer system along with other shipping information for future reference.
This party is not necessarily the sender or recipient of the shipment. For example, if a computer user sends in a laptop for warranty repair, the invoice recipient will typically be the manufacturer’s warranty program, not the customer or repair center. There can be a variety of circumstances in which a third party may be liable for the costs of a shipment.
The person responsible for the collection pays the charges associated with carrying the shipment, together with any taxes, fees and charges that may be incurred. If there are concerns about issues such as customs fees, that party is responsible for resolving them in advance by completing the correct declarations or contacting customs officials to inquire about the details. That party may also be liable for expenses associated with delivery, returns and other situations that may arise if a package cannot be delivered as addressed.
In the event that materials are shipped with a payment on demand delivery, the billing party may be responsible for the fee charged by the carrier to retrieve and process the payment. The carrier may send an invoice for all funds owed, with information on the nature and origins of each charge. The person responsible for billing may have credit, allowing payment to be made between 30 and 90 days before the account expires, and during this time it is also possible to file a dispute to correct a billing error.
To avoid situations where people list a random person as an invoice, senders can require the use of an account or authorization number. This limits the risk of the sender sending an invoice to that party, only to find that the shipment was not authorized and the invoice will not be paid. Typically, the shipper needs to include an authorization number on the package, which can be cross-referenced with the billing portion, to confirm that the shipper accepts responsibility for the shipment.
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