x You work in the Logistics Industry, need to find out what local charges are?
Surcharge? x Do you want to know the relevant regulations of Local Charges and how to declare fees?
x Do you have a large quantity of goods and want to combine them with many customers to import and export by sea?
Proship.vn is one of the main units transporting retail goods by sea from Vietnam to Japan, Germany, Australia, America,... by combining goods with many different customers, each customer will have a separate declaration. . Furthermore, we also understand clearly what local charge is as well as other issues related to this type of fee and surcharge, so we will quickly answer it within the framework of the following sharing article for your business.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What are Local Charges?
In the freight transportation process, transportation costs are calculated from the time the goods move from the port to the destination port, including ocean freight and surcharges. In addition, when goods are loaded onto a ship or unloaded at a container yard, shipping lines will collect additional fees to ensure operations, such fees are called Local Charges. So, what are Local charges?
Local Charges are essentially local charges collected at the loading port and loading port. Accordingly, in addition to the Ocean Fee, shipping lines/Forwarders (freight forwarders) will often collect an additional fee and that is the Local Charges fee. Compared to other fees, local fees are collected according to shipping lines and ports. Therefore, when transporting a shipment, both the shipper and the consignee (recipient) must pay fees according to regulations.
Local charges that are quite common today include:
- Terminal Handling Charge: Is a loading and unloading fee at the port and is calculated per container of goods. This fee's purpose is to offset fees such as loading and unloading goods, gathering containers at the yard... Based on that, the shipping company will not be charged any additional fees but will collect the fee from the shipper. Often this type of substance is referred to as THC;
- Handling Fee: A fee set by the Forwarder to collect from the Consignee and Shipper. The handling fee is considered a fee for the forwarder's process of dealing with their agents in other countries to carry out a number of tasks such as issuing B/L, D/O, customs declaration and preparing some documents. other;
- Delivery Order Fee: Is the delivery order fee, referred to as D/O for short. When there is a shipment of imported goods and there is an Arrival Notice, the consignee must go to the shipping company to get a D/O delivery order. Then bring the received D/O to the port to present it to the warehouse and make a goods receipt. When making a delivery order, the shipping company will calculate the fee for that D/O;
- CFS Fee - Container Freight Station Fee: Is one of the most common local charges. This fee will be collected by shipping companies when unloading goods from containers to warehouses or from warehouses to containers;
- AMS fee: A mandatory fee required by the customs of some countries such as the US, Canada, etc. When importing into these countries, you must declare the goods in detail before loading and unloading on the ship. AMS fees will fluctuate around 30 USD/bill;
- Bunker Adjustment Factor Fee: Abbreviated as BAF, is a surcharge to compensate for fuel price fluctuations from time to time. BAF fees will have different rates depending on the shipping company collecting the fee from the shipper and on each European route and Asian route;
- B/L fee; AWB fee, Documentation fee: These are similar fees to D/O fees. That is, when there is an export shipment, shipping companies will issue a sea freight bill or an air freight bill. Shipping fees for the sender or receiver will be paid by the shipping company;
- Container Imbalance Charge CIC: Is a container imbalance fee, this fee is also known as import excess surcharge. This fee will be collected by shipping lines to offset the cost of transporting containers from places with excess containers to places with a shortage of containers to ensure that locations always have enough containers to pack goods;
- Bill of Lading editing fee: This fee only applies to goods exported abroad. Maybe for some reasons, when the goods arrive, you need to edit the information on the B/L. At this point you need to ask the shipping lines to make corrections for you and these shipping lines will charge a fee for that correction. Fees can range from 50-100 USD;
- General Rate Increase – GRI fee: A fee specifically applied to frozen goods. This type of goods is often packed in refrigerated containers and refrigerated containers need to be continuously plugged in to keep the goods inside cold. This fee is considered the electricity bill to maintain refrigeration for these containers;
- Peak Season Surcharge: This fee is referred to as PSS and is collected by shipping lines during peak seasons for transporting goods. This fee is only temporary and appears when the demand for transporting goods increases.
Some other types of Local Charge:
- Lead Seal sealing fee;
- Security screening fee;
- Surcharge for reducing sulfur emissions;
- Security and customs declaration fees into some countries;
- Data transmission fees.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Some related regulations and how to declare Local Charges
In international shipping, your shipment will be subject to many different taxes, the most common of which is Local charge. If you work in import-export or work at a Logistics Company, you should remember these local charges. Learn more to know the reason why local charges arise, and how to declare local charges below:
Why do local charges arise? What are the regulations?
Depending on the type of goods and activities performed, Local Charges are determined. There is no fixed fee for all transactions of transporting, loading and unloading goods at the port. Because each activity has different characteristics and requirements and incurs different fees to suit the effort and tax fees. Fees for loading goods onto ships for export will be distinguished from fees paid for loading goods into containers for import, and similarly from all other activities related to the transaction of goods. between shipping line/Forwarder and Shipper/Consignee.
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This is the simple reason why Local Charges arise. These types of fees have similarities that can easily be confused, so when learning about local Charges, you need to clearly understand the nature of each type of fee. Avoid the working process between you and related units getting into trouble due to confusion.
The fastest and most accurate way to declare local charges
Regarding import and export, although local charges are paid to shipping units, they still need to be declared in detail to the tax authority to calculate tax. This declaration will be conducted on specialized software such as ECUS5 or VNCCS. So do you know how to make tax declarations on these software?
* How to declare Local charges first:
- On the General Information tab 2, in the Value declaration section, enter the code to classify the values.
- In the Adjustments section of the Value Declaration section, enter the following values: classification code, name code, value of the items to be adjusted, currency code based on local fee payment invoice. charges. charges.
- In the Detailed value declaration section, the person declaring local charges will be responsible for clearly filling in the fees. At the same time, declare with specific values.
* Second way to declare Local charges:
On the List of Goods tab, select Cost Allocation. These items are all regulated in Vietnamese law, so you will be given specific instructions according to each individual law.
In general, each order will likely be subject to a lot of local taxes and fees if the shipper is new to the business and has no experience. So to avoid having to spend a large amount of money on shipping costs, the best way is for shippers to find a reputable shipping unit.
>>See more: What is Cut-off time/closing time?
Why should you choose cheap LCL shipping service to major countries by sea at Proship?
Customers should trust and choose Chinh Ngach Sea Freight Import-Export Service on Vietnam - USA, Germany, Netherlands, Australia, Japan,... at PROSHIP JOINT STOCK COMPANY , mainly because:
- Arrange all goods, regular freight frequency, large transport capacity, no quantity limit;
- CFS warehouses collect retail goods located in strategic locations nationwide, creating an effective and complete LCL solution;
- Proship is a unit that has close links with large, branded shipping companies and units in the market;
- Extremely good prices for shipping LCL goods to other countries by container (2-way), stable schedule, priority for quick delivery and exploitation of goods from shipping lines, ports, CFS warehouses,...;
- There are many direct export and import shipments every week;
- Collect goods from many places to send to the US, Australia, Germany, Japan,... and store goods waiting for delivery at the destination;
- Consolidation service at international transit stations, service coverage to transit routes;
- The staff is professionally trained, dedicated and experienced;
- Equipped with container trailers, multi-load containers, modern and sturdy lifting and unloading machinery and equipment;
- Direct shipping to/from North American, South American, European and Asian ports;
- You can track your order directly through the Websites or through our consulting staff;
- Cargo insurance when importing and exporting LCL cargo by sea from Vietnamese Ports - Ports in the US, Japan, Australia, Germany,...;
- The contract stipulates the responsibilities of the carrier transporting LCL goods by sea container to other countries;
- Agents and partners are spread all over the country, so you can rest assured that the goods will be sent abroad the fastest;
- Commitment to confidentiality of customer information as well as information of goods provided by customers;
- Compensation policy for goods at market price if errors are detected by the Carrier;
- Many service packages for customers to choose from such as: CY-CY shipping, Door to Door shipping, Shipping according to Incoterms terms in the contract.
Because we have a lot of experience transporting goods by sea containers, Proship clearly understands what local charges are as well as what local charge surcharges are, etc., so before officially signing the contract of transport - import and export of retail goods. Following the Chinh Ngach route, we will advise and negotiate carefully so that shippers can estimate their shipping budget in advance.
The customers Proship has been targeting
- Corporations, domestic and foreign companies that need to transport goods;
- Factories, projects, general agents and services for domestic goods, international import and export;
- Small and medium-sized enterprises have a need for international sea transport and import-export for the fastest time and the smallest cost savings.
Shipping methods - LCL retail delivery
- Transporting LCL cargo from Port to Port;
- Transporting Consol goods from Port to Warehouse;
- Transporting LCL goods from Warehouse to Warehouse;
- Transport goods to door upon request;
- Other accompanying services depend on the specific needs of customers.
Information provided to receive quotes for transporting retail goods from Chinh Ngach Vietnam - China, Japan, Germany, Australia, USA,...
- Pick-up address/Delivery port;
- Delivery address/Port of import;
- Product name, standard type, size, weight;
- Quantity of goods;
- If it is cold cargo, food cargo needs to provide the required cold temperature;
- If it is dangerous goods, it is necessary to provide MSDS and UN number;
- Estimated date of completion of goods;
- Other requirements if any…
* In addition to sea freight quoted by specific route, local charges are kept fixed according to the price list:
- Sulfur surcharge (LSS or WBS): USD 7/CBM. Is a new surcharge, according to regulations in the Imo2020 treaty on maritime transport;
- Terminal Handling charges: USD 8/CBM;
- Bill fee/Docs fee: USD 40/set;
- Telex release fee: USD 30/set;
- EBS/AMS/AFR fee: USD 35/trip;
- CFS warehouse fee: USD 8/CBM.
Proship has quickly compiled the knowledge you need to know about what local charges are , what the regulations for local charges are, what local charge surcharges are and how to declare local charges in sea freight transport today. Customers who are Individuals/Businesses and are planning to send goods as a full trip or LCL shipments should save information to partly support the trade of goods/products with partners/ customer. And when you need to use the cheap LCL shipping service to Chinh Ngach countries, please contact us directly at 0909 344 247 .
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
