One-vote seaborne export goods, from domestic shipping ports to foreign destinations, generally generate the following three expenses:

1. Domestic departure port

Local fees for departure ports, including customs declaration fees and delivery fees, are commonly known as RMB fees.

Local fees are generally expressed in terms of Local Charges. Local charges for departure port may include pickup fee, packing fee, port miscellaneous charges, port security fee, bill of lading fee, manifest entry fee, terminal operation fee (THC) or origin additional fee (ORC), seal fee, customs declaration fee. Wait. Under FOB terms, these fees must be borne by the seller. Since the FOB clause is FOB, all costs and risks before the goods leave the port of departure are borne by the seller (seller/shipper). (Customs tax is generally not included)

It should be noted that who is responsible for the declaration fee for the manifests such as AMS in the United States and ENS in the European Union? It can be understood that since AMS, ENS, etc. are all pre-shipment declarations at the port of departure, these costs are also incurred before the “offshore” and should be borne by the seller (seller/shipper). What do you think?

2. Sea freight and related surcharges

The sea freight and related surcharges from the port of departure to the port of destination, such as fuel surcharges, are commonly known as US dollar fees.

FOB terms are FOB, not CIF, FOB does not include shipping and premiums, so under FOB terms, Ocean Freight must be borne by foreign buyers. Because the sea freight is borne by the foreign buyer, the goods that are subject to FOB terms are also called “designated goods”. Because the FOB is in charge, the buyer is responsible for finding the freight forwarder or carrier, and the seller contacts the freight forwarder or carrier designated by the buyer to arrange the goods to be shipped. Matters.

Various fuel surcharges such as emergency fuel surcharge (EBS), Suez Canal Surcharge (SCS), peak season surcharge (PSS), comprehensive rate increase surcharge (GRI), direct surcharge (D/A), etc. Fees are closely related to sea freight and can be said to be part of the sea freight, so these surcharges should also be borne by the buyer when FOB terms.

3. Local cost of destination port

Local cost of destination port including customs clearance fee and delivery fee.

Local fees at the port of destination may include customs clearance fees, port maintenance fees, cargo handling fees, storage fees, operating fees, delivery charges, customs duties, etc. If it is a sea freight consolidation, there may be an unpacking fee, a washing fee, a sorting fee, and the like. In different countries, the local cost of the destination port may vary widely.

Since the FOB terms are FOB, not CIF, there is no doubt that all local costs in the port of destination are borne by the buyer (buyer/consignee).

In fact, the CIF and CIF transactions, the local port charges are also borne by the buyer. Because C&F only increased shipping costs, CIF only increased shipping and premiums. According to the General Principles of Interpretation of International Trade Terms, C&F and CIF do not include all costs and responsibilities for customs clearance at the port of destination. In fact, the risk boundary of FOB, C&F and CIF is the same. It is the delivery port that passes the ship's rail to complete the delivery, and the risk and responsibility of the goods are transferred to the buyer.

Finally, if the goods are to be insured, who should be responsible for insurance? Who is responsible for the premium? In the case of FOB and C&F transactions, the buyer is responsible for the insurance, because FOB and C&F do not include premiums; if it is CIF, the insurance is the seller's responsibility, because CIF includes premiums, “I” is Insurance, and “F” is It is Freight freight, "C" is Cost and FOB price.