Payment Terms: What They Mean, Types, and Examples
Confused about payment terms in your invoices and contracts? Here's what they mean, the common types, and how to write them clearly.
Sending a parcel from Makati to Melbourne shouldn't require a maths degree. Yet once you add courier zones, volumetric weight, and customs paperwork, international shipping prices get confusing quickly.
This guide breaks down what you'll actually pay, which couriers Filipino businesses reach for the most, and how to keep costs down without your shipment getting stuck at customs.
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International shipping is the process of moving goods across a country's border, usually by air or sea, through a courier or freight forwarder. For a business, that process starts when an order leaves your warehouse in the Philippines and ends when the shipment reaches its destination once customs clears it.
In the Philippines, most small businesses start with a courier like LBC or DHL, or a local freight forwarder, rather than shipping cargo themselves. You pack the item, weigh it, fill out a customs form, and hand it over for pickup or drop off at a service center.
Take a small seller in Cebu making handwoven bags. A customer in Sydney places an order, so the seller packs the bag, records its weight and dimensions, declares the value, and books the shipment. The courier handles the export side and transports the parcel to Australia, where it may need to clear customs before final delivery.
The same process applies whether you're sending one parcel a week or shipping several pallets.
There's no single international shipping rate. A light document might cost a few hundred pesos, while a large business shipment can run into tens of thousands.
The final bill usually combines several fees:
Two boxes weighing the same can still cost very different amounts to ship because couriers also consider the destination, service level, and the amount of space a shipment occupies.
Consider a box measuring 40 × 30 × 20 cm and weighing 2 kg. Multiply the dimensions and divide by 5,000, a common volumetric divisor, and you get 4.8 kg. You'd be billed for 4.8 kg, not 2 kg, because the box takes up more space on the plane than its actual weight would suggest.
That's why packaging deserves attention before you book the shipment. An oversized box can push up the charge even when the product inside is relatively light.
Service level matters too. Express delivery costs more than economy shipping, while the destination, declared value, product type, and pickup location all affect the quote. Business accounts may qualify for negotiated rates, although surcharges can still apply.
To help you budget, here's what two major couriers, DHL Express¹ and FedEx², charge for Metro Manila shipments under their published 2026 rate guides.
These are base rates only, before fuel surcharges, customs duties, taxes, and VAT, so treat them as a floor rather than a final quote, and expect other couriers and your own account discounts to price differently.
To Singapore
| Shipment | DHL¹ | FedEx² |
|---|---|---|
| Document* | 990 PHP | 823 PHP |
| 1 kg parcel | 1,877 PHP | 1,544 PHP |
| 5 kg parcel | 3,657 PHP | 3,211 PHP |
| 25 kg parcel | 9,887 PHP | 9,400 PHP |
To Australia
| Shipment | DHL¹ | FedEx² |
|---|---|---|
| Document* | 1,848 PHP | 1,739 PHP |
| 1 kg parcel | 3,351 PHP | 3,144 PHP |
| 5 kg parcel | 6,619 PHP | 5,902 PHP |
| 25 kg parcel | 17,269 PHP | 16,925 PHP |
To the United States
| Shipment | DHL¹ | FedEx² |
|---|---|---|
| Document* | 1,991 PHP | 1,839 PHP |
| 1 kg parcel | 3,710 PHP | 3,429 PHP |
| 5 kg parcel | 7,308 PHP | 6,819 PHP |
| 25 kg parcel | 19,848 PHP | 19,200 PHP |
To the United Kingdom
| Shipment | DHL¹ | FedEx² |
|---|---|---|
| Document* | 3,200 PHP | 2,737 PHP |
| 1 kg parcel | 4,077 PHP | 3,711 PHP |
| 5 kg parcel | 9,151 PHP | 8,435 PHP |
| 25 kg parcel | 30,451 PHP | 28,925 PHP |
*DHL's document rate is a distinct pricing tier. Meanwhile, FedEx provides a designated FedEx Envelope for shipping documents, with a maximum weight of 0.5 kg. FedEx rates may also vary depending on the shipping service: International Priority Express (IPE), International Priority (IP), or International Economy (IE). The FedEx rates shown in the table are based on IP.

As of October 2026, electronic products make up the lion's share of everything the Philippines ships abroad, accounting for well over half of the total export value in recent monthly figures.3
Other manufactured goods and other mineral products follow at a distance, each holding a single-digit share of the total.
Imports lean the same way. Electronic products top the list again, driven by the same supply chains that make the Philippines a major electronics exporter. Mineral fuels and lubricants come next, since the country imports most of its oil, followed by cereals and cereal preparations, animal feeding stuff, and telecommunication and electrical machinery.
Some goods can't cross the border at all, or only with special permission. The Bureau of Customs treats these as either prohibited (banned outright) or restricted (allowed only with the right authorization):4
Regulated products such as food, pharmaceuticals, plants, and live animals may also need approval from an agency such as the Food and Drug Administration (FDA), the Bureau of Plant Industry (BPI), or the Bureau of Animal Industry (BAI) before they can be shipped.⁶
Check the import and export rules
Start with the product itself. Make sure it's permitted to leave the Philippines and check whether the destination country has additional restrictions.
Identify the HS code
The Harmonized System (HS) code identifies your product for customs purposes. The classification helps determine how the shipment is treated and what duty rate applies. The BOC's Philippine Tariff Finder lets you look up the correct code and tariff rate for free.5
Decide who pays the shipping and import costs
Agree on the Incoterm with your buyer before the order ships. This determines who is responsible for costs such as freight, insurance, import clearance, and duties.
Weigh and measure the packed shipment
Measure the box after it's packed, not before. Packaging can add both weight and volume, and either one can affect the final shipping charge.
Compare like-for-like quotes
Match service speed and insurance level across couriers, or you're not really comparing anything.
Prepare the documents
The exact paperwork depends on the goods and shipment, but common documents include a waybill, commercial invoice, and packing list.
Book and pay
Once the details and documents are ready, book the shipment and arrange pickup or drop-off.
Track clearance
Watch for a customs hold, and be ready to answer questions if one comes up.
Keep proof of delivery
Save the tracking record and delivery confirmation. If a customer disputes delivery later, you'll need evidence that the shipment reached its destination.
| Document | Needed for |
|---|---|
| Waybill | Every shipment |
| Commercial invoice | Every shipment |
| Certificate of origin | Trade agreement discounts |
| Customs export declaration | Business shipments |
| Packing list | Business shipments |
| Export license | Regulated goods |
The right shipping provider depends on what you're sending and how often you send it. A business shipping a few e-commerce parcels each week has different needs from a company moving pallets or regular commercial freight.
Price matters, but it shouldn't be the only factor. Consider delivery coverage, tracking, customs support, pickup arrangements, and the types of shipments the provider handles.

For a growing business, it's also worth asking whether the provider can support you as your volumes increase. A courier that works well for individual parcels may not be the best fit once you need freight forwarding, warehousing, or more formal logistics support.
Some of the most established international shipping companies operating in the Philippines include:
For a closer look at what each one specializes in, read a full rundown of the top international shipping companies in the Philippines.
International shipping gets cheaper when you improve the process, not just the individual shipment. A few changes can add up over dozens or hundreds of orders.
That last point catches a lot of businesses out. A courier's freight rate is only half the cost of shipping internationally if you're also paying that courier, or an overseas supplier, in a foreign currency.
Managing international shipping expenses goes beyond freight charges, volumetric weight calculations, and fuel surcharges. When paying overseas logistics providers or global couriers in foreign currencies, exchange rate markups and hidden bank conversion fees can quietly push up your total landed cost per shipment.
Wise Business helps streamline your international supply chain expenses by allowing you to pay overseas suppliers and shipping partners in foreign currencies.


With a Wise Business multi-currency account, you can access over 8+ local account details — far more currency options than the handful most banks offer. Plus, Wise makes it easy to hold, send, receive, and exchange 40+ currencies from a single account.
With the freedom to send and receive payments in more currencies globally, you can focus on what matters most: growing a local business that knows no borders. Here's what you get with a Wise Business account:
➡️Get started with Wise Business today
Wise Pilipinas Inc. is regulated by the Bangko Sentral ng Pilipinas. You may visit the BSP website for more information about its regulatory framework and consumer protection policies. To reach Wise, visit help center here.
1. Who pays customs duties and taxes on an international shipment?
It depends on the Incoterm you agree with your buyer. Under some arrangements, the sender pays duties and other import costs before the shipment reaches its destination. In others, the recipient pays when the parcel arrives, sometimes before the courier releases it.
2. How long does international shipping from the Philippines take?
Express services to major hubs like Singapore or Australia typically take two to four business days. Economy or postal services to the US or the UK can take one to three weeks or longer if the shipment gets held for customs inspection.
3. Can Philippine businesses use Wise Business to pay overseas logistics providers?
Yes. A Wise Business account lets you hold multiple currencies and pay international suppliers, including shipping and logistics providers, at Wise's real exchange rate. This makes it easier to see your actual landed cost per shipment instead of absorbing whatever rate your bank quotes on the day.
Sources
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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