diff --git a/app/models/spree/address.rb b/app/models/spree/address.rb
new file mode 100644
index 0000000000..1285ca3380
--- /dev/null
+++ b/app/models/spree/address.rb
@@ -0,0 +1,123 @@
+module Spree
+  class Address < ActiveRecord::Base
+    belongs_to :country, class_name: "Spree::Country"
+    belongs_to :state, class_name: "Spree::State"
+
+    has_many :shipments
+
+    validates :firstname, :lastname, :address1, :city, :country, presence: true
+    validates :zipcode, presence: true, if: :require_zipcode?
+    validates :phone, presence: true, if: :require_phone?
+
+    validate :state_validate
+
+    alias_attribute :first_name, :firstname
+    alias_attribute :last_name, :lastname
+
+    def self.default
+      country = Spree::Country.find(Spree::Config[:default_country_id]) rescue Spree::Country.first
+      new(country: country)
+    end
+
+    # Can modify an address if it's not been used in an order (but checkouts controller has finer control)
+    # def editable?
+    #   new_record? || (shipments.empty? && checkouts.empty?)
+    # end
+
+    def full_name
+      "#{firstname} #{lastname}".strip
+    end
+
+    def state_text
+      state.try(:abbr) || state.try(:name) || state_name
+    end
+
+    def same_as?(other)
+      return false if other.nil?
+      attributes.except('id', 'updated_at', 'created_at') == other.attributes.except('id', 'updated_at', 'created_at')
+    end
+
+    alias same_as same_as?
+
+    def to_s
+      "#{full_name}: #{address1}"
+    end
+
+    def clone
+      self.class.new(self.attributes.except('id', 'updated_at', 'created_at'))
+    end
+
+    def ==(other_address)
+      self_attrs = self.attributes
+      other_attrs = other_address.respond_to?(:attributes) ? other_address.attributes : {}
+
+      [self_attrs, other_attrs].each { |attrs| attrs.except!('id', 'created_at', 'updated_at', 'order_id') }
+
+      self_attrs == other_attrs
+    end
+
+    def empty?
+      attributes.except('id', 'created_at', 'updated_at', 'order_id', 'country_id').all? { |_, v| v.nil? }
+    end
+
+    # Generates an ActiveMerchant compatible address hash
+    def active_merchant_hash
+      {
+        name: full_name,
+        address1: address1,
+        address2: address2,
+        city: city,
+        state: state_text,
+        zip: zipcode,
+        country: country.try(:iso),
+        phone: phone
+      }
+    end
+
+    private
+      def require_phone?
+        true
+      end
+
+      def require_zipcode?
+        true
+      end
+
+      def state_validate
+        # Skip state validation without country (also required)
+        # or when disabled by preference
+        return if country.blank? || !Spree::Config[:address_requires_state]
+        return unless country.states_required
+
+        # ensure associated state belongs to country
+        if state.present?
+          if state.country == country
+            self.state_name = nil #not required as we have a valid state and country combo
+          else
+            if state_name.present?
+              self.state = nil
+            else
+              errors.add(:state, :invalid)
+            end
+          end
+        end
+
+        # ensure state_name belongs to country without states, or that it matches a predefined state name/abbr
+        if state_name.present?
+          if country.states.present?
+            states = country.states.find_all_by_name_or_abbr(state_name)
+
+            if states.size == 1
+              self.state = states.first
+              self.state_name = nil
+            else
+              errors.add(:state, :invalid)
+            end
+          end
+        end
+
+        # ensure at least one state field is populated
+        errors.add :state, :blank if state.blank? && state_name.blank?
+      end
+  end
+end
diff --git a/app/models/spree/shipping_category.rb b/app/models/spree/shipping_category.rb
new file mode 100644
index 0000000000..c3d7ca3f24
--- /dev/null
+++ b/app/models/spree/shipping_category.rb
@@ -0,0 +1,8 @@
+module Spree
+  class ShippingCategory < ActiveRecord::Base
+    validates :name, presence: true
+    has_many :products
+    has_many :shipping_method_categories
+    has_many :shipping_methods, through: :shipping_method_categories
+  end
+end
diff --git a/app/models/spree/shipping_method.rb b/app/models/spree/shipping_method.rb
new file mode 100644
index 0000000000..6d610c9159
--- /dev/null
+++ b/app/models/spree/shipping_method.rb
@@ -0,0 +1,60 @@
+module Spree
+  class ShippingMethod < ActiveRecord::Base
+    include Spree::Core::CalculatedAdjustments
+    DISPLAY = [:both, :front_end, :back_end]
+
+    default_scope -> { where(deleted_at: nil) }
+
+    has_many :shipments
+    has_many :shipping_method_categories
+    has_many :shipping_categories, through: :shipping_method_categories
+    has_many :shipping_rates
+
+    has_and_belongs_to_many :zones, :join_table => 'spree_shipping_methods_zones',
+                                    :class_name => 'Spree::Zone',
+                                    :foreign_key => 'shipping_method_id'
+
+    validates :name, presence: true
+
+    validate :at_least_one_shipping_category
+
+    def adjustment_label
+      Spree.t(:shipping)
+    end
+
+    def include?(address)
+      return false unless address
+      zones.any? do |zone|
+        zone.include?(address)
+      end
+    end
+
+    def build_tracking_url(tracking)
+      tracking_url.gsub(/:tracking/, tracking) unless tracking.blank? || tracking_url.blank?
+    end
+
+    def self.calculators
+      spree_calculators.send(model_name_without_spree_namespace).select{ |c| c < Spree::ShippingCalculator }
+    end
+
+    # Some shipping methods are only meant to be set via backend
+    def frontend?
+      self.display_on != "back_end"
+    end
+
+    private
+      def at_least_one_shipping_category
+        if self.shipping_categories.empty?
+          self.errors[:base] << "You need to select at least one shipping category"
+        end
+      end
+
+      def self.on_backend_query
+        "#{table_name}.display_on != 'front_end' OR #{table_name}.display_on IS NULL"
+      end
+
+      def self.on_frontend_query
+        "#{table_name}.display_on != 'back_end' OR #{table_name}.display_on IS NULL"
+      end
+  end
+end
diff --git a/app/models/spree/shipping_method_category.rb b/app/models/spree/shipping_method_category.rb
new file mode 100644
index 0000000000..08c691114b
--- /dev/null
+++ b/app/models/spree/shipping_method_category.rb
@@ -0,0 +1,6 @@
+module Spree
+  class ShippingMethodCategory < ActiveRecord::Base
+    belongs_to :shipping_method, class_name: 'Spree::ShippingMethod'
+    belongs_to :shipping_category, class_name: 'Spree::ShippingCategory'
+  end
+end
diff --git a/app/models/spree/shipping_rate.rb b/app/models/spree/shipping_rate.rb
new file mode 100644
index 0000000000..b930cda43b
--- /dev/null
+++ b/app/models/spree/shipping_rate.rb
@@ -0,0 +1,32 @@
+module Spree
+  class ShippingRate < ActiveRecord::Base
+    belongs_to :shipment, class_name: 'Spree::Shipment'
+    belongs_to :shipping_method, class_name: 'Spree::ShippingMethod'
+
+    scope :frontend,
+      -> { includes(:shipping_method).
+          where(ShippingMethod.on_frontend_query).
+          references(:shipping_method).
+          order("cost ASC") }
+    scope :backend,
+      -> { includes(:shipping_method).
+           where(ShippingMethod.on_backend_query).
+           references(:shipping_method).
+           order("cost ASC") }
+    
+    delegate :order, :currency, to: :shipment
+    delegate :name, to: :shipping_method
+
+    def display_price
+      if Spree::Config[:shipment_inc_vat]
+        price = (1 + Spree::TaxRate.default) * cost
+      else
+        price = cost
+      end
+
+      Spree::Money.new(price, { currency: currency })
+    end
+
+    alias_method :display_cost, :display_price
+  end
+end
diff --git a/spec/models/spree/address_spec.rb b/spec/models/spree/address_spec.rb
new file mode 100644
index 0000000000..96accfa587
--- /dev/null
+++ b/spec/models/spree/address_spec.rb
@@ -0,0 +1,228 @@
+require 'spec_helper'
+
+describe Spree::Address do
+  describe "clone" do
+    it "creates a copy of the address with the exception of the id, updated_at and created_at attributes" do
+      state = create(:state)
+      original = create(:address,
+                         :address1 => 'address1',
+                         :address2 => 'address2',
+                         :alternative_phone => 'alternative_phone',
+                         :city => 'city',
+                         :country => Spree::Country.first,
+                         :firstname => 'firstname',
+                         :lastname => 'lastname',
+                         :company => 'company',
+                         :phone => 'phone',
+                         :state_id => state.id,
+                         :state_name => state.name,
+                         :zipcode => 'zip_code')
+
+      cloned = original.clone
+
+      cloned.address1.should == original.address1
+      cloned.address2.should == original.address2
+      cloned.alternative_phone.should == original.alternative_phone
+      cloned.city.should == original.city
+      cloned.country_id.should == original.country_id
+      cloned.firstname.should == original.firstname
+      cloned.lastname.should == original.lastname
+      cloned.company.should == original.company
+      cloned.phone.should == original.phone
+      cloned.state_id.should == original.state_id
+      cloned.state_name.should == original.state_name
+      cloned.zipcode.should == original.zipcode
+
+      cloned.id.should_not == original.id
+      cloned.created_at.should_not == original.created_at
+      cloned.updated_at.should_not == original.updated_at
+    end
+  end
+
+  context "aliased attributes" do
+    let(:address) { Spree::Address.new }
+
+    it "first_name" do
+      address.firstname = "Ryan"
+      address.first_name.should == "Ryan"
+    end
+
+    it "last_name" do
+      address.lastname = "Bigg"
+      address.last_name.should == "Bigg"
+    end
+  end
+
+  context "validation" do
+    before do
+      configure_spree_preferences do |config|
+        config.address_requires_state = true
+      end
+    end
+
+    let(:country) { mock_model(Spree::Country, :states => [state], :states_required => true) }
+    let(:state) { stub_model(Spree::State, :name => 'maryland', :abbr => 'md') }
+    let(:address) { build(:address, :country => country) }
+
+    before do
+      country.states.stub :find_all_by_name_or_abbr => [state]
+    end
+
+    it "state_name is not nil and country does not have any states" do
+      address.state = nil
+      address.state_name = 'alabama'
+      address.should be_valid
+    end
+
+    it "errors when state_name is nil" do
+      address.state_name = nil
+      address.state = nil
+      address.should_not be_valid
+    end
+
+    it "full state name is in state_name and country does contain that state" do
+      address.state_name = 'alabama'
+      # called by state_validate to set up state_id.
+      # Perhaps this should be a before_validation instead?
+      address.should be_valid
+      address.state.should_not be_nil
+      address.state_name.should be_nil
+    end
+
+    it "state abbr is in state_name and country does contain that state" do
+      address.state_name = state.abbr
+      address.should be_valid
+      address.state_id.should_not be_nil
+      address.state_name.should be_nil
+    end
+
+    it "state is entered but country does not contain that state" do
+      address.state = state
+      address.country = stub_model(Spree::Country)
+      address.valid?
+      address.errors["state"].should == ['is invalid']
+    end
+
+    it "both state and state_name are entered but country does not contain the state" do
+      address.state = state
+      address.state_name = 'maryland'
+      address.country = stub_model(Spree::Country)
+      address.should be_valid
+      address.state_id.should be_nil
+    end
+
+    it "both state and state_name are entered and country does contain the state" do
+      address.state = state
+      address.state_name = 'maryland'
+      address.should be_valid
+      address.state_name.should be_nil
+    end
+
+    it "address_requires_state preference is false" do
+      Spree::Config.set :address_requires_state => false
+      address.state = nil
+      address.state_name = nil
+      address.should be_valid
+    end
+
+    it "requires phone" do
+      address.phone = ""
+      address.valid?
+      address.errors["phone"].should == ["can't be blank"]
+    end
+
+    it "requires zipcode" do
+      address.zipcode = ""
+      address.valid?
+      address.should have(1).error_on(:zipcode)
+    end
+
+    context "phone not required" do
+      before { address.instance_eval{ self.stub :require_phone? => false } }
+
+      it "shows no errors when phone is blank" do
+        address.phone = ""
+        address.valid?
+        address.should have(:no).errors_on(:phone)
+      end
+    end
+
+    context "zipcode not required" do
+      before { address.instance_eval{ self.stub :require_zipcode? => false } }
+
+      it "shows no errors when phone is blank" do
+        address.zipcode = ""
+        address.valid?
+        address.should have(:no).errors_on(:zipcode)
+      end
+    end
+  end
+
+  context ".default" do
+    before do
+      @default_country_id = Spree::Config[:default_country_id]
+      new_country = create(:country)
+      Spree::Config[:default_country_id] = new_country.id
+    end
+
+    after do
+      Spree::Config[:default_country_id] = @default_country_id
+    end
+    it "sets up a new record with Spree::Config[:default_country_id]" do
+      Spree::Address.default.country.should == Spree::Country.find(Spree::Config[:default_country_id])
+    end
+
+    # Regression test for #1142
+    it "uses the first available country if :default_country_id is set to an invalid value" do
+      Spree::Config[:default_country_id] = "0"
+      Spree::Address.default.country.should == Spree::Country.first
+    end
+  end
+
+  context '#full_name' do
+    context 'both first and last names are present' do
+      let(:address) { stub_model(Spree::Address, :firstname => 'Michael', :lastname => 'Jackson') }
+      specify { address.full_name.should == 'Michael Jackson' }
+    end
+
+    context 'first name is blank' do
+      let(:address) { stub_model(Spree::Address, :firstname => nil, :lastname => 'Jackson') }
+      specify { address.full_name.should == 'Jackson' }
+    end
+
+    context 'last name is blank' do
+      let(:address) { stub_model(Spree::Address, :firstname => 'Michael', :lastname => nil) }
+      specify { address.full_name.should == 'Michael' }
+    end
+
+    context 'both first and last names are blank' do
+      let(:address) { stub_model(Spree::Address, :firstname => nil, :lastname => nil) }
+      specify { address.full_name.should == '' }
+    end
+
+  end
+
+  context '#state_text' do
+    context 'state is blank' do
+      let(:address) { stub_model(Spree::Address, :state => nil, :state_name => 'virginia') }
+      specify { address.state_text.should == 'virginia' }
+    end
+
+    context 'both name and abbr is present' do
+      let(:state) { stub_model(Spree::State, :name => 'virginia', :abbr => 'va') }
+      let(:address) { stub_model(Spree::Address, :state => state) }
+      specify { address.state_text.should == 'va' }
+    end
+
+    context 'only name is present' do
+      let(:state) { stub_model(Spree::State, :name => 'virginia', :abbr => nil) }
+      let(:address) { stub_model(Spree::Address, :state => state) }
+      specify { address.state_text.should == 'virginia' }
+    end
+  end
+
+  context "defines require_phone? helper method" do
+    let(:address) { stub_model(Spree::Address) }
+    specify { address.instance_eval{ require_phone? }.should be_true}
+  end
+end
diff --git a/spec/models/spree/shipping_rate_spec.rb b/spec/models/spree/shipping_rate_spec.rb
new file mode 100644
index 0000000000..c66ffd62e9
--- /dev/null
+++ b/spec/models/spree/shipping_rate_spec.rb
@@ -0,0 +1,38 @@
+# encoding: utf-8
+
+require 'spec_helper'
+
+describe Spree::ShippingRate do
+  let(:shipment) { create(:shipment) }
+  let(:shipping_method) { create(:shipping_method) }
+  let(:shipping_rate) { Spree::ShippingRate.new(:shipment => shipment,
+                                                :shipping_method => shipping_method,
+                                                :cost => 10.55) }
+  before { Spree::TaxRate.stub(:default => 0.05) }
+
+  context "#display_price" do
+    context "when shipment includes VAT" do
+      before { Spree::Config[:shipment_inc_vat] = true }
+      it "displays the correct price" do
+        shipping_rate.display_price.to_s.should == "$11.08" # $10.55 * 1.05 == $11.08
+      end
+    end
+
+    context "when shipment does not include VAT" do
+      before { Spree::Config[:shipment_inc_vat] = false }
+      it "displays the correct price" do
+        shipping_rate.display_price.to_s.should == "$10.55"
+      end
+    end
+
+    context "when the currency is JPY" do
+      let(:shipping_rate) { shipping_rate = Spree::ShippingRate.new(:cost => 205)
+                            shipping_rate.stub(:currency => "JPY")
+                            shipping_rate }
+
+      it "displays the price in yen" do
+        shipping_rate.display_price.to_s.should == "¥205"
+      end
+    end
+  end
+end