Citipost Global

Upstream Control Infrastructure

UK outbound cross-border assurance, from checkout to delivery

Upstream decisioning, funded landed cost, direct postal injection, and reconciled outcomes

UK → EU
UK → US
UK → Rest of World

Applies across parcel and post, with different execution and settlement mechanics by destination

How It Works

A complete view of decisioning, funding, execution, and reconciliation across the cross-border flow

Retailer
Checkout: customer selects product & destination
Request landed cost calculation
Display final price including duty/VAT
Platform

Layer 1: Landed Cost & HS Validation

HS code validation with confidence scoring
Calculate duty, VAT, and delivery fees
Return landed cost to retailer checkout

Layer 2: Decision & Routing Engine

Decision gate: Is this shipment allowed to proceed?
Validate HS confidence threshold met
Check destination eligibility and execution model
Select optimal Post/carrier network

Layer 3: Ledger & Exposure Database

Create ledger entry for this shipment
Record duty/VAT exposure amount
Store shipment reference, HS code, declared value
Mark entry as pending settlement

Layer 4: Payments & Settlement

Funding check: Invoice / Direct Debit / Prepaid Credit
Confirm sufficient funds/credit available
Update ledger: mark as funded
Generate settlement reference
✓ Shipment approved → Pass validated data + settlement reference to Post
Post / Carrier
Receive validated HS code, value, settlement reference
Execute physical collection and transport
Submit to customs using platform-provided data
Customs
Receive electronic advance declaration
Process clearance using HS code and value
Return final assessment to platform
Reconcile variance (if any) with ledger
End Customer
Receives parcel with no unexpected charges
Outcome matches checkout promise

This is a closed control loop: decide → fund → inject → observe → reconcile → learn

This platform is upstream control infrastructure, not shipping software. It decides whether a shipment is allowed to exist, validates HS and landed cost before label creation, records and funds duty/VAT exposure via a central ledger, routes shipments across carrier and postal networks, passes validated data to Posts and customs authorities, reconciles final customs outcomes, and ensures the end customer experience matches the checkout promise.

Geography Scope: UK → EU, US, ROW

UK → EU

Postal DDP / PDDP increasingly required. EU customs reforms and national handling fees make landed cost certainty critical.

National handling fees and per-item duties considered. The platform factors in country-specific charges when calculating total landed cost.

Decisioning selects viable Posts and execution models. Different EU countries require different approaches — the platform routes accordingly.

UK → US

No de minimis for mail. All inbound mail shipments are subject to duty and tax regardless of value.

Qualified Party–based DDP settlement. DDP execution requires QP registration and settlement infrastructure.

Duty & tax funding must be confirmed before dispatch. Tight linkage between declaration ID, item ID, and payment state.

UK → Rest of World

Mixed DDP / DDU-assured. Execution models vary widely based on destination country capabilities.

Capability varies by country. Some countries support full DDP, others require DDU with pre-declared charges.

Decision layer determines what promise is defensible. The platform only makes promises it can keep.

One control model, different downstream mechanics.

Retailer & Checkout

Landed cost calculation before label creation. The platform computes duty, VAT, and delivery fees at checkout time, ensuring the end customer sees the final price before purchase.

HS validation as a gating requirement. Products must pass HS code validation with sufficient confidence. If the HS code cannot be determined, the shipment is not allowed to proceed.

The platform supports:

  • DDP — Duty and VAT paid by retailer, no charges to customer
  • Postal DDP (PDDP) — DDP executed via postal network
  • DDU-assured — Customer pays known, pre-declared charges

Indicative at checkout, definitive at label / decision stage.

The customer experience is decided before the parcel moves.

Decision & Routing (Authority Layer)

This is where authority sits.

Eligibility checks by destination and execution model. The platform validates each shipment against destination rules, carrier capabilities, and customs requirements.

Routing across multiple designated operators. The platform selects the optimal postal or carrier network (e.g. Correos, Jersey Post, PostNord) based on service level, cost, and clearance capability.

Explicit refusal of unfundable or ambiguous shipments. If a shipment does not meet requirements — HS confidence too low, destination unsupported, exposure unfunded — it is refused at the platform layer.

DDP is a decision, not a carrier feature.

First-Class System

Ledger, Funding & Settlement

The ledger is not an afterthought. It is the central system of record for all cross-border exposure.

Shipment-level exposure records. Every shipment creates a ledger entry recording duty, VAT, and delivery charges. This entry is immutable and auditable.

Known liabilities before movement. All liabilities are tracked in real time, providing retailers and customs authorities with a single source of truth.

Funding methods:

  • Invoice — Periodic settlement for established retailers
  • Direct debit — Automated pull from retailer accounts
  • Prepaid credit — Pre-funded balances drawn down per shipment

Release authority only when funding rules are satisfied. The platform will not inject a shipment into the postal network unless its exposure is funded.

If it isn't known, funded, and recorded, it doesn't move.

Cost Composition + Assurance Fee

Total landed cost is composed of three elements:

Total landed cost =
Transport cost
+ Import costs
+ Assurance Fee

Transport Cost

Derived from internal XLS ratecards based on country, weight, service level, and Post or carrier selection.

Import Costs

Duties, taxes, and destination fees. HS- and destination-driven. Calculated using official tariff schedules and VAT rates.

Assurance Fee

Covers decisioning, underwriting, injection, and reconciliation. This is not a "platform fee" — it is the price of taking responsibility for the outcome.

The Assurance Fee is the price of taking responsibility for the outcome.

Postal Injection + Tracking Feedback Loop

Direct injection into designated operators. The platform injects shipments directly into postal networks, bypassing traditional carrier aggregation layers.

Authoritative label / item ID creation or brokering. The platform either creates the postal label directly or brokers its creation with the Post, ensuring control over the item identifier.

Tracking events returned directly from the Post. The platform receives tracking updates directly from postal operators, providing ground-truth visibility into shipment status.

Tracking serves three purposes:

  • Execution confirmation — Verify the shipment progressed as expected
  • Reconciliation input — Feed actual outcomes back to the ledger
  • Feedback for decisioning — Improve upstream routing and eligibility rules based on real performance

Tracking is feedback, not just visibility.

Customs Interaction (EU / US / ROW)

Validated HS/value data passed via Posts to customs authorities. Data is validated upstream and passed to customs without ambiguity or error.

Electronic declarations. The platform submits advance customs declarations electronically, ensuring authorities have visibility before arrival.

EU

Postal DDP/PDDP settlement models. Harmonized declarations with country-specific handling fees.

US

Qualified Party (QP) settlement. Direct linkage between declaration ID, payment state, and clearance.

ROW

Mixed settlement approaches depending on country capability and bilateral postal agreements.

Customs outcomes fed back into the ledger. Final assessments from customs authorities are recorded in the ledger, enabling reconciliation.

Variance and reconciliation handling. When actual duty differs from predicted duty, the platform identifies the variance and settles the difference.

Customs outcomes are reconciled, not discovered late.

Operational Outcomes

The following outcomes are not features. They are inevitable results of upstream control.

Reduced WISMO

Customers know what to expect because the promise was made before dispatch, not discovered at delivery.

Lower CS cost per order

Fewer surprises mean fewer support tickets. Landed cost was declared upfront.

Fewer write-offs and disputes

Exposure was funded before movement. Customs outcomes are reconciled, not absorbed as losses.

More predictable clearance

Data quality at the point of declaration reduces customs holds and inspection rates.

These are not features; they are the result of upstream control.

Why This Is Hard to Copy

Others can calculate landed cost. Few can underwrite, inject, and reconcile outcomes across postal networks.

Proximity to Posts

Direct relationships with designated operators and postal authorities. Not aggregated through third parties.

Direct injection and label ownership

Control over item ID creation and postal label generation. Not dependent on carrier systems.

Ground-truth tracking feedback

Direct tracking events from Posts, feeding reconciliation and decision improvement.

Closed-loop reconciliation

Customs outcomes feed back to ledger. Variances are identified and settled, not absorbed.

Accumulated operational learning

Years of real clearance outcomes feeding decision rules. Cannot be copied from documentation.

Others can calculate landed cost. Few can underwrite, inject, and reconcile outcomes across postal networks.