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Neutral Delivery Service (NDS) : Hiding The Value Of Your Shipment from Your Receiver


Neutral Delivery Service (NDS) : Hiding The Value Of Your Shipment from Your Receiver

Neutral Delivery (NDS) is an optional service offered by DHL Express to selected destinations for DHL account holders. For certain shipments, we want the declared value or the value on the invoice of the shipment to remain confidential to the receiver. In such cases, NDS can be selected when creating your waybill. Upon selecting this service, our delivery center at the destination will remove the paperwork before taking the shipment out for delivery. 

It is also important to note that when selecting NDS, you must clearly indicate an Importer of Record (IOR) in your shipping invoice, under the header “Bill-To”. The shipment will now have three parties involved.

  1. Shipper (Origin)
  2. IOR (Destination)
  3. Receiver (Destination)

The IOR will act as the official importer of the shipment, meaning that duties, taxes, or any other payments will go through the IOR, but the end destination of the shipment will go to the receiver, who doesn’t have to pay for a thing.

Some key points to guide you through the NDS process:

  • Must be done at origin by the shipper
  • Must not include the value of the shipment on the waybill
  • DTP and NDS cannot be selected together
  • Must indicate a contactable IOR on the invoice and label it under Bill-To (in full address format)
  • IOR must be in the same country as the receiver  

If you have more questions on NDS and its application, 

Neutral Delivery Service (NDS) is an optional service offered by DHL Express where the shipment's declared value is kept confidential from the receiver. It usually concerns blind shipments – where the end receiver is not aware of the product's origin. In ordinary circumstances, the manufacturer completes production and ships the finished product to the importer, who, in turn, ships it to the customer. To increase efficiency and save costs, some importers may choose to arrange for manufacturers to ship products directly to consumers. 

There are several reasons why you might want to consider DHL Express’ NDS. Read on further to explore what Neutral Delivery Service is, how the process works, and the benefits of arranging blind shipments. 

What is Neutral Delivery Service (NDS)?

DHL Express’ Neutral Delivery Service (NDS) works by providing shippers with the option of keeping the shipment's declared value confidential from the end receiver. This service works hand in hand with dropshipping, where e-commerce businesses can buy an inventory of goods from the manufacturers and fulfil orders as and when orders are made. Instead of retailers having to receive products and shipping out the product to the end customer – paying for shipping twice – businesses can ship straight to the end customer. 

Blind shipping is a type of dropshipping, where along with e-commerce companies shipping products directly to customers, they also hide the supplier’s identity. This is also where DHL Express’ NDS comes in. With NDS, the cost of the blind delivery is concealed from the final customer

Understanding the NDS process

Users can select the option of NDS when creating their air waybill with DHL Express. 

The Neutral Delivery Service  involves three parties namely: 

  • Shipper (Origin)
  • IOR (Destination)
  • Receiver (Destination)

The shipping term, importer of Record (IOR), refers to the official importer of the shipment. All taxes, duties, or any other payment are  paid by the IOR. In the end, the shipment is delivered to the receiver without them having to pay any amount.

If you’re looking for a blind shipment logistics service, you can trust DHL Express to provide you with what you need. DHL Express’ Neutral Delivery Service process involves the following main steps:

  • The shipper selects the NDS service during the booking of his shipment at the origin.
  • The shipper does not include the value of the shipment on the Waybill.
  • Under the ‘Bill-to’ option, the shipper indicates an Importer of Record (IOR) who will be responsible foro paying the taxes and duties. 
  • Once the IOR makes all the necessary payments, all related paperwork of NDS is removed from the shipment.
  • The IOR and receiver must be located within the same city.
  • The logistics company will then deliver the shipment to the receiver where he will not be aware of the value of the shipment or its actual origin.

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Reasons why businesses want to do blind shipments

There are several reasons as to why businesses would want to carry out blind shipping and leverage DHL Express’ Neutral Delivery Service. 

1. It is cost-Effective

Shipping involves a lot of processes which incur additional costs and businesses need to strive to cut down on shipping costs to stay competitive. By using a blind shipping service, the retailers would only need to pay for shipping once which is beneficial to them due to less costs incurred. Hence, blind shipping is cost-effective for the retailers.

2. There is no need to worry about warehousing

When distributors acquire products from a manufacturer and sell it to customers, blind shipments and DHL Express’ Neutral Delivery Service allow them to focus just on organising the shipping process. They needn’t worry about inventory management, production, or warehousing. As orders come in, they have to simply purchase the products from the manufacturer and have them shipped directly to the consumer or the retail stores.

3. Retailers can channel efforts into branding and marketing

If retailers engage in blind shipments, they would have more resources to devote to their business’ branding and marketing. The retailers would need to focus on marketing and shipping, while the manufacturers would focus on production management and quality control.

4. It increases efficiency

The process of blind shipping increases efficiency across the supply chain since all parties are involved in tasks they specialise in without having to worry about other aspects. This process enables direct transportation of products from the producer to customers without the intervention of a third-party vendor.

5. You can focus on expansion and increasing profits

Each party can focus on expanding and increasing profits in their areas of expertise. When the tasks are divided among different stakeholders, each can focus their time and effort on their respective tasks and grow. In addition, distributors can negotiate prices and receive the products at a lower price if they forge a good relationship with their suppliers.

Blind shipments restrictions

Blind shipments carry different restrictions based on the carriers who ship them. They place restrictions to make sure that they bill correctly. Some shipping companies allow false names, addresses, and phone numbers on the blind shipment but the city and zip codes should match the actual senders. Some carriers may allow all these information fields to be fake. Always check with your carrier to be aware of the restrictions in place regarding blind shipments.

Explore blind shipping with DHL Express’ Neutral Delivery Service

The process of blind shipments is somewhat complicated since there are incorrect business names, addresses, and phone numbers involved. When using DHL Express’ Neutral Delivery Service to ship internationally from Singapore, the declared value of the shipment needs to be confidential for the receiver. Hence, the sender must carefully communicate with the carrier to ensure that the right paperwork reaches the receiver and not the actual information about the manufacturer who wished to remain anonymous. Create a business account with DHL Express today to find out how you can use our NDS logistics service when handling overseas shipments.

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