What Are International Shipping Terms And Conditions? (2026 Updated)

If you’re selling products from New Zealand to customers overseas (or importing stock to sell locally), international shipping can be one of the fastest ways to grow your business.

But it can also be one of the easiest places for misunderstandings to turn into disputes - especially when a parcel is delayed, damaged, stuck at the border, or “delivered” to the wrong address.

That’s where international shipping terms and conditions come in. They set the ground rules for who pays for shipping, who carries the risk, what happens at customs, and what you’ll do if things go wrong. This guide is updated to reflect current expectations around online selling and cross-border fulfilment, so you can set up your legal foundations properly from day one.

What Are International Shipping Terms And Conditions?

International shipping terms and conditions are the clauses (usually in your website terms, sales terms, invoices, or customer contract) that explain how you handle delivery across borders.

In plain English, they’re the rules that answer questions like:

• Where do you ship? (Countries/regions you service and any exclusions)
• How much does shipping cost? (Flat rate, calculated at checkout, free shipping thresholds)
• When does ownership and risk pass? (If the item is lost/damaged in transit, who wears it?)
• What are your delivery timeframes? (Estimated vs guaranteed delivery)
• Who pays duties, taxes and customs charges?
• What happens if delivery fails? (Wrong address, refused delivery, unclaimed parcels)
• How do returns work internationally? (Timeframes, costs, documentation)

Most businesses include these rules inside broader online terms. If you sell online, this usually sits inside your Website Terms And Conditions and is supported by a clear shipping policy that customers can find before they pay.

If you sell business-to-business (B2B), your shipping terms might also appear in your Terms Of Trade or sale of goods terms, so your commercial customers understand exactly what “delivery” means in your relationship.

Why Do Shipping Terms Matter For NZ Businesses Selling Overseas?

International shipping isn’t just “domestic delivery, but further away”. The practical risks are bigger, and the legal expectations are different because there are more parties involved (carriers, freight forwarders, customs, overseas last-mile services).

Good international shipping terms and conditions help you:

• Reduce disputes and chargebacks by setting realistic expectations about timeframes and delays.
• Allocate risk clearly (for example, whether risk passes on dispatch or on delivery).
• Avoid accidental misleading claims about delivery speed, tracking, or “guaranteed” arrival dates.
• Manage customs and duties so customers know what they may need to pay on arrival.
• Protect margins by explaining who pays for re-delivery, returns, and failed delivery handling costs.
• Build trust by being transparent - which often leads to fewer complaints.

In New Zealand, your advertising and checkout representations still need to be accurate and not misleading under the Fair Trading Act 1986. So if your website says “Express delivery 3–5 days worldwide”, but in practice that timeframe only applies to a handful of metro destinations, you may be exposing your business to complaints.

And if you sell to consumers, the Consumer Guarantees Act 1993 can apply in many situations connected to the goods you sell (and how you represent them). While shipping delays often involve carrier performance, the way you communicate delivery expectations and what remedies you offer can still matter a lot.

If you also collect customer data for shipping (names, addresses, phone numbers, email, tracking events), you’ll want to make sure your Privacy Policy matches what you actually do - especially if you’re using overseas fulfilment providers.

What Should International Shipping Terms Include?

There’s no one-size-fits-all set of shipping terms - a made-to-order furniture brand has different risks from a low-cost accessories store sending hundreds of parcels a week.

That said, most NZ businesses selling internationally should consider covering the following essentials.

1) Shipping Destinations And Restrictions

Be specific about:

• countries/regions you ship to;
• any excluded destinations (for example, PO boxes, sanctioned countries, remote islands);
• products you won’t ship internationally (for example, batteries, aerosols, restricted foods).

If you rely on third-party courier restrictions, say so. It helps avoid the “but your website let me order it” dispute later.

2) Delivery Timeframes (And How You Describe Them)

International delivery timeframes should usually be described as estimates, not guarantees, unless you truly control the entire delivery chain.

It’s common to separate out:

• Processing time (picking/packing/dispatch from your warehouse), and
• Shipping time (transit once the carrier collects it).

Also consider adding a short explanation that delays can occur due to customs processing, peak season volume, weather disruptions, or local carrier delays - without making it sound like you’re avoiding responsibility for everything.

3) Tracking, Delivery Confirmation, And Proof Of Delivery

If you provide tracking, state:

• when tracking becomes active (for example, after carrier scan);
• what counts as delivery confirmation (carrier scan, signature, photo proof);
• what you’ll do if tracking shows “delivered” but the customer says it wasn’t received.

This is a big one for managing chargebacks. You want a clear internal process, but you also want customers to know what information you need to investigate.

4) Customs, Duties, Import Taxes, And Clearance Fees

Customers often assume the checkout price includes everything. In international shipping, that’s not always true.

Your terms should explain whether:

• the customer is responsible for duties/taxes/clearance fees charged in their country;
• you’ll ship “duties paid” (where you cover charges and build them into the price); and
• what happens if the customer refuses to pay duties and the parcel is returned or destroyed.

If you don’t address this upfront, you’ll likely deal with disputes where customers demand refunds for items held at customs, even though you shipped exactly what they ordered.

5) Risk And Title: Who Is Responsible If Goods Are Lost Or Damaged?

This is where international shipping terms can get technical - and where getting advice is especially valuable.

Two key concepts are usually:

• Risk: who bears the loss if the goods are damaged/lost in transit?
• Title (ownership): when does ownership pass to the buyer?

Many online retail businesses try to say risk passes on dispatch. That might sound convenient, but it can be risky if it conflicts with consumer expectations or the way you market your delivery experience.

A more customer-friendly approach is sometimes to keep responsibility for delivery until the parcel is delivered (especially where you choose the carrier). The right approach depends on your business model, product value, insurance, and where your customers are located.

If you sell B2B, you may also use Incoterms (we’ll cover those below), but you should still make sure they match your ordering, invoicing and logistics setup.

6) Failed Delivery, Wrong Address, And Re-Delivery Costs

A surprisingly common issue is “wrong address provided” or “delivery attempted” where the parcel is held at a depot and later returned.

Your shipping terms can clarify things like:

• the customer must provide an accurate delivery address (including local delivery requirements);
• you’re not responsible for non-delivery due to incorrect address details;
• who pays for re-delivery or re-shipping if the parcel is returned;
• whether you deduct return shipping/handling fees from any refund.

This is also a good place to explain timelines (for example, how long you’ll hold a returned parcel before treating it as abandoned).

7) Returns, Refunds, And Exchanges For International Orders

International returns are often the moment a customer decides whether they trust your brand.

Make sure your terms set out:

• return window (for example, 14 days from delivery);
• condition requirements (unused, tags attached, original packaging);
• who pays return shipping;
• how refunds are processed (original payment method, less shipping fees if applicable);
• how you handle returns where the item is held at customs on the way back.

If you offer paid services alongside goods (like installation, customisation, or consultation), your cancellation/refund approach needs extra care - and may be better handled with tailored cancellation terms that align with your shipping rules.

Do I Need To Use Incoterms (And What Do They Actually Mean)?

You’ve probably seen terms like EXW, FOB, CIF, or DDP in international trade. These are often referred to as Incoterms (International Commercial Terms).

Incoterms are a set of standardised terms published by the International Chamber of Commerce. They’re mainly designed for international B2B trade to clarify responsibilities in shipping, including:

• who arranges transport;
• who pays for freight;
• who handles export/import clearance;
• where risk transfers from seller to buyer.

Important: Incoterms don’t automatically cover everything you might assume. For example, they don’t replace a proper sales contract, and they don’t automatically set out warranty rights, returns processes, or what happens if the goods are defective.

Common Incoterms You’ll See

• EXW (Ex Works): buyer bears most responsibility from the seller’s premises (often very buyer-heavy).
• FOB (Free On Board): typically used for sea freight; risk often passes once goods are loaded on the vessel.
• CIF (Cost, Insurance & Freight): seller pays costs, insurance and freight to destination port, but risk may pass earlier than you’d expect.
• DDP (Delivered Duty Paid): seller delivers to destination and pays duties/taxes (more customer-friendly but can be operationally complex).

If you’re doing larger shipments, wholesale export deals, or using freight forwarders, Incoterms can be a great way to reduce ambiguity - but they need to be used correctly and matched to your real-world logistics workflow.

In many cases, it’s worth putting Incoterms into a tailored supply or customer agreement rather than relying on a line in an invoice. If you’re contracting with suppliers or distributors, a properly drafted Supply Agreement can be the place where shipping responsibilities, risk, and compliance obligations are properly tied together.

What NZ Laws Should I Keep In Mind When Drafting Shipping Terms?

Even though shipping is “international”, your business is still operating from New Zealand - and your customer-facing promises still need to stack up under NZ law (and often the law of the markets you sell into).

Here are some key NZ legal frameworks that commonly come into play.

Fair Trading Act 1986 (Misleading Or Deceptive Conduct)

Your delivery promises are marketing claims. If you say “tracked shipping” but only offer tracking for some destinations, or you advertise “free returns worldwide” but the customer must pay shipping, that can become a Fair Trading Act risk.

Practical tip: use clear, specific language (and don’t hide the key limitations).

Consumer Guarantees Act 1993 (Consumer Protections)

If you sell goods to consumers, the CGA can apply to goods supplied in trade. While the CGA is mainly about product guarantees (acceptable quality, fit for purpose, matching description), shipping issues often overlap because customers treat “delivery” as part of the experience.

Practical tip: don’t try to “contract out” of consumer guarantees in consumer sales. For B2B sales, contracting out may be possible in some situations, but it needs careful drafting and it must meet strict requirements.

Contract And Commercial Law Act 2017 (Your Contract Basics)

Your shipping terms are part of your contract with the buyer. That means clarity matters: vague or contradictory terms can be hard to enforce and can lead to disputes about what was actually agreed.

Practical tip: make sure your checkout flow clearly incorporates your terms (for example, via a tick box) and that your terms are easy to access before purchase.

Privacy Act 2020 (Shipping Data And International Data Handling)

Shipping is personal data-heavy. You may share customer information with couriers, fulfilment providers, and tracking platforms - sometimes offshore.

Under the Privacy Act 2020, you generally need to take reasonable steps to protect personal information and be transparent about how you collect, use, and disclose it.

Practical tip: align your shipping workflow with your privacy documents and internal processes. If you’re not sure where to start, having the right Privacy Collection Notice can help you clearly explain what you collect at checkout and why.

How Do I Put Shipping Terms Into My Website Or Customer Contract?

Once you know what your shipping rules are, the next step is putting them into the right legal format - and making sure they’re actually enforceable.

Here are common approaches NZ businesses use.

Option 1: Website Terms With A Shipping Policy

This is the most common setup for eCommerce.

• Your website terms cover the overall relationship (orders, pricing, payment, liability limits, governing law, dispute resolution).
• Your shipping policy covers the practical delivery details (timeframes, costs, duties, failed delivery, returns process).

Just be careful: if your shipping policy contradicts your website terms (or your checkout messaging), you’re inviting disputes.

Option 2: Terms Of Trade For B2B Customers

If you supply retailers, wholesalers, or commercial buyers, your shipping terms often sit within your terms of trade or sale terms - especially where delivery, risk, and title are negotiated.

This is also where you might deal with issues like:

• partial shipments and split deliveries;
• inspection periods;
• limits on claims for damaged stock;
• restocking fees or returns authorisation processes.

Option 3: A Tailored Customer Contract (For High-Value Or Complex Deliveries)

If you’re shipping high-value goods internationally (or anything custom-made), it’s often worth using a tailored contract rather than relying purely on website terms.

This is especially true if:

• the goods are made-to-order;
• the delivery method is bespoke (freight forwarding, special handling);
• you’re installing, training, or providing ongoing support; or
• you need detailed acceptance testing or sign-off processes.

In those cases, you might use a more formal Service Agreement (or sale agreement structure) that clearly ties shipping obligations to payment milestones and acceptance criteria.

And if you’re working with overseas contractors (for example, an offshore fulfilment team or customer support provider), it’s also worth making sure the relationship is documented properly - misclassification can create risk. Having the right agreements in place matters, particularly if you’re engaging overseas contractors as your business grows.

Key Takeaways

• International shipping terms and conditions explain how delivery works across borders, including timeframes, costs, customs charges, tracking, returns, and what happens if goods are lost or damaged.
• Clear shipping terms help reduce customer complaints, chargebacks, and disputes by setting expectations before a customer buys from you.
• Your shipping promises can create legal risk if they’re misleading - make sure delivery timeframes and “free shipping” claims are accurate under the Fair Trading Act 1986.
• Customs duties, import taxes, and clearance fees should be dealt with upfront, including what happens if a customer refuses to pay charges and the parcel is returned.
• Incoterms can be useful for B2B trade, but they don’t replace a proper contract - your terms still need to cover returns, defective goods, and other key commercial issues.
• If you collect and share customer delivery data, make sure your privacy documents and processes align with the Privacy Act 2020.
• Don’t rely on generic templates for international shipping terms - the right approach depends on your products, markets, fulfilment model, and risk profile.

If you’d like help drafting or reviewing your international shipping terms and conditions (so you’re protected from day one), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.