“Port of destination miscellaneous charges” in ocean freight refer to various miscellaneous charges incurred after the goods arrive at the port of import. Common port of destination miscellaneous charges include the following:
Terminal Handling Charge (THC): This covers the costs of port handling, such as loading and unloading, and container handling. The charges vary by port, but generally, the charges for a 20GP/40HQ container range from US$100 to US$300.
Document Fee: This is a document processing fee charged by the port or freight forwarder, approximately US$20 to US$50.
Customs Clearance Fee: This is a service fee charged by the customs broker or freight forwarder for assisting the consignee with customs clearance procedures, typically ranging from US$50 to US$200 per shipment.
Inspection and Quarantine Fee: For goods requiring inspection and quarantine, such as food and chemicals, customs or third-party agencies will charge corresponding inspection fees.
Customs Duty/VAT: Calculated based on the goods’ HS code and the destination country’s tax rate, this fee is borne by the consignee and must be paid in advance or upon arrival at the port.
Demurrage: Containers have a certain period of free storage at the port, usually 7-14 days. Beyond this period, shipping companies will charge a daily detention fee, typically ranging from US$50-200 per day.
Demurrage: Storage fees incurred when cargo is not promptly removed from the port. Demurrage can be particularly high during peak season when ports are congested.
Container Cleaning Fee: Container cleaning fees are incurred if cargo contaminates or damages the container, requiring cleaning. For example, this fee may be charged after shipping chemicals or food.
ISPS: International Ship and Port Facility Security Charge, typically US$10-30.
Freight forwarders often quote “actual cost” for the following reasons:
Cost uncertainty: The specific amount of miscellaneous charges at the destination port is affected by a variety of factors, such as the type and value of the goods, the policies of the destination port, and the port’s charging standards. For example, tariff rates vary from country to country. Even for the same shipment, customs clearance fees, inspection and quarantine fees, etc. may vary across ports. Therefore, it is difficult for freight forwarders to accurately estimate these costs when quoting, and they must rely on actual cost.
Customs assessment factors: Fees such as customs duties are assessed by customs based on the actual conditions of the goods. Freight forwarders cannot determine the final amount in advance; only upon customs clearance can they determine the exact amount of duties payable based on the assessment. Therefore, actual cost is crucial.
Avoiding disputes: If freight forwarders estimate miscellaneous charges at the destination port when quoting, there may be a significant discrepancy between the estimated amount and the actual amount, leading to disputes with customers. Using actual cost allows customers to clearly understand the source and amount of each fee, reducing unnecessary disputes.
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