International ocean freight destination port charges are divided into two categories: those that the consignee must pay and those that the shipper can avoid in advance. The core difference lies in the nature of the fees and the allocation of responsibility. Mandatory charges are the fixed costs of customs clearance and cargo pickup at the destination port, borne by the consignee; avoidable charges are mostly operational or demurrage-related fees, which the shipper can completely avoid through advance planning.
Below, Weefreight will provide you with a detailed explanation, hoping it will be helpful.
I. Mandatory Fees for the Consignee (Fixed Costs, Unavoidable)
- Core Taxes and Fees (Mandatory, No Room for Negotiation)
Customs Duty + Value-Added Tax: Calculated based on the cargo value and HS code tax rate, these are the core taxes and fees at the destination port, paid by the consignee to customs, with no possibility of exemption.
Customs Clearance Fee: The service fee charged by the freight forwarder/customs broker for handling customs clearance, including declaration and document review. This is a fixed charge and a mandatory operational fee.
- Basic Terminal/Yard Handling Fees (Mandatory, Charged per Container/Shipment)
THC (Terminal Handling Charge): The basic fee for lifting, stacking, and handling containers at the terminal. For full container loads, it is charged per container type; for less than container loads (LCL), it is allocated based on cargo volume. This is a mandatory charge at all global ports.
D/O Fee (Delivery Order Fee): The fee for the consignee to exchange the bill of lading for a delivery order. Charged by the shipping agent/freight forwarder, this is a necessary step for cargo pickup and is mandatory.
Port Construction Fee/Security Fee: A fixed fee charged by the destination port government or terminal, levied per container/shipment, with no exemption.
- Basic Cargo Pickup Fees (Mandatory, Incurred as Needed)
Unpacking Fee (LCL): The fee for unpacking and sorting LCL cargo at the destination port warehouse, charged per CBM/shipment. This does not apply to full container loads. Towing Fee: The cost of transporting the container from the port/depot to the consignee’s designated address, charged based on distance and container type. Self-pickup does not incur this fee.
II. How Shippers Can Avoid Fees (Operational/Overdue Fees, which can be completely avoided)
- Overdue Fees (Easiest to avoid, simply requires advance planning)
Detention Fee: Fees incurred for exceeding the free time for container use. The free period is usually 7-10 days, and charges are applied daily thereafter (approximately US$50-100 per day for a 20GP container).
Avoidance: The consignee should clear customs and pick up the goods promptly, returning the container within the free period; the shipper can apply to the shipping company for an extension of the free period.
Demurrage Fee: Fees incurred for exceeding the free time for container storage at the port. The free period is 3-7 days, and charges are applied daily thereafter.
Avoidance: Pick up the container immediately after customs clearance to avoid long-term storage at the port; coordinate with the customs broker in advance to shorten the customs clearance time.
Warehousing Fee: Fees for exceeding the free time for LCL (less than container load) cargo storage at the destination port warehouse, charged daily/per cubic meter.
Avoidance: The consignee should pick up the goods promptly, or the shipper should agree on a free storage period with the warehouse in advance.
- Fees Due to Operational Errors (Avoidable with precise operation)
Amendment Fee: Fees incurred for incorrect bill of lading information (consignee, consignor, product name, HS code, etc.), resulting in amendments at the destination port (300-1000 RMB per shipment).
Avoidance: The shipper should carefully check the bill of lading information before the cut-off time to ensure 100% accuracy and avoid later modifications.
Inspection Fee: Inspection, unpacking, and sealing fees incurred due to manual customs inspection, triggered by inaccurate declarations or sensitive goods. Avoidance: Declare the goods name and value truthfully, and provide certification documents in advance for sensitive goods to reduce the probability of inspection.
Late Declaration Penalty: Fines incurred for failing to declare and clear customs within the specified time, charged as a percentage of the cargo value.
Avoidance: Prepare customs clearance documents in advance before the goods arrive at the port, and declare immediately upon arrival to avoid delays.
- Unreasonable Surcharges (Can be avoided through prior agreement)
Unreasonable charges at the destination port: Some freight forwarders charge unreasonable fees (such as handling fees, document fees) without clear charging basis.
Avoidance: The shipper should confirm the details of destination port fees with the freight forwarder before shipment, sign a “Destination Port Fee Package Agreement,” and ensure there are no hidden charges; choose a reputable freight forwarder to avoid low-price bidding followed by price increases at the destination port.
III. Core Principles of Fee Payment and Avoidance
Mandatory Fees: Inform the consignee of the fee details in advance, reserve funds, and ensure smooth customs clearance and cargo pickup;
Avoidable Fees: The shipper should focus on “accurate information, timely planning, and contractual agreements” to avoid overdue and error-related fees from the source;
Risk Transfer: Trade terms (such as FOB, CIF) clearly define the division of costs to avoid future disputes. Under FOB terms, destination port fees are mostly borne by the consignee; under CIF terms, the shipper can negotiate some fees in advance.
(Note: The above information regarding timelines or fees is for reference only. Please refer to the actual situation during shipment for specifics. Thank you!)
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