1. What does BSO mean on my FedEx shipping label?

BSO stands for Broker Select Option. It means the shipper or importer has chosen to use their own customs broker instead of FedEx for clearance.


2. Why does BSO appear on my shipment?

BSO appears when:

  • The importer is responsible for customs clearance under the chosen Incoterm (e.g., DAP, FCA, EXW).
  • Duties and Taxes payment is set to Third Party or Recipient, and the importer requires their own broker.
  • Local regulations mandate a licensed broker (e.g., India’s CBIC rules).

3. Which countries commonly require a local broker?

  • India – CBIC rules; IEC code required.
  • Brazil – RADAR license required.
  • Mexico – Licensed Mexican broker mandatory.
  • China – Local broker for formal entries.
  • Russia – Licensed customs representative required.
  • Saudi Arabia / UAE – Local agent required.
  • EU (Spain, Italy) – Fiscal representative for VAT compliance.

4. How do Incoterms and Duties Payment affect BSO?

Here’s the decision matrix:

Incoterm
Duties & Taxes Payment
Who Clears Customs
BSO Likely?
DDP
SENDER
FedEx or seller’s broker
No
DDP
THIRD PARTY
FedEx or seller’s broker
No
DAP
RECIPIENT
FedEx (if recipient agrees)
Maybe
DAP
THIRD PARTY
Recipient’s broker
Yes
DAP
SENDER
FedEx
No
FCA / EXW
RECIPIENT
Recipient’s broker
Yes

Rule of thumb:

  • To avoid BSO, use DDP + Duties Payment = SENDER.
  • Avoid DAP + THIRD PARTY or FCA/EXW, as these almost always trigger BSO.

5. How can I avoid BSO?

  • Use DDP (Delivered Duty Paid) and set Duties & Taxes Payment to SENDER.
  • This ensures FedEx acts as the broker and clears customs without involving a third-party broker.

6. Which FedEx services support Broker Select?

  • FedEx International Priority
  • FedEx International Economy
  • FedEx International Priority Freight
  • FedEx International Economy Freight

7. What if I accidentally selected BSO?

Contact FedEx or your shipping provider immediately to remove Broker Select and allow FedEx to clear customs.


8. Why does India specifically enforce BSO?

India’s Central Board of Indirect Taxes and Customs (CBIC) requires importers to have an IEC code and often mandates clearance through a licensed customs broker.


9. Where do I set BSO in FedEx API?

  • Add BROKER_SELECT to SpecialServiceTypes.
  • Provide broker details under CustomsClearanceDetail/Broker.