x Import-export businesses have heard of Reimbursement Fee but do not clearly understand what Reimbursement Fee is?
x Are you interested in the benefits of Reimbursement Fee? You don't know how to calculate this fee?
x Do you want to know how and what is the Reimbursement Fee payment process?
Within the framework of this article, PROSHIP.VN will convey the knowledge you need to know about what Reimbursement Fee is, related benefits,... and the process of accepting Reimbursement fee refunds easily for businesses specializing in import and export goods. Distinguish this fee from other common fees and surcharges.
What is Reimbursement Fee and what are the benefits?
What is Reimbursement Fee?
What is Reimbursement Fee? Reimbursement Fee is a fee incurred during the process of issuing a bill of exchange when one party accepts payment. Reimbursement Fee in import and export is a fee that the exporting or importing party requests to be reimbursed for costs incurred during the transportation, processing or delivery of goods.
This fee is often used to offset costs that one party must pay on behalf of another party such as shipping costs, customs fees, storage fees, or other taxes and fees. In many cases, import-export businesses must pay these costs in advance, then request reimbursement from the partner through Reimbursement Fee.
Benefits of Reimbursement Fee
What are the benefits of Reimbursement Fee? Reimbursement Fee helps the import-export process go smoothly, avoiding delays in goods delivery. Helps divide costs reasonably – Reimbursement fees are allocated accurately according to the agreement in the commercial contract.
How are Reimbursement Fees calculated?
The Reimbursement fee does not have a fixed calculation formula because it depends on the types of costs that the original fee payer has paid in advance. These costs include:
- Storage fee: The cost of storing goods at the port is calculated based on the time the goods are kept at the warehouse;
- Customs fees: Calculated based on import and export tax rates in the importing country;
- Shipping costs: Costs incurred in transporting from port to final destination, including sea, road, or air freight.
* For example: If the exporter prepays 500 USD shipping fee, 300 USD customs fee and 200 USD storage fee, the total Reimbursement Fee is 1,000 USD. This amount is required to be refunded from the importing party.
Basic fees and surcharges in import and export
For an import-export shipment by air, road, sea or rail, there will be many types of fees and surcharges:
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- AMS:
AMS (Advanced Manifest System Fee) is a special customs fee for shipments to the US, Canada, etc. This fee is collected at the sending point and collected on each shipment.
- Amendment Fee:
B/L correction fee (Amendment Fee) only applies to exported goods. When issuing a set of B/L to the shipper, after the shipper receives it or for some reason needs to edit some details on the B/L and request the shipping company/forwarder to edit, they have the right to charge an editing fee. . This fee is collected at the point of dispatch and collected on each shipment (B/L).
- BAF:
BAF is a surcharge that shipping lines collect from shippers to offset costs incurred due to fuel price fluctuations. This fee is collected according to the number of containers at the sending or receiving point.
- Bill:
Can be Bill of Lading fee (for sea freight) or Airway Bill (for import-export by air). This fee is collected at the point of dispatch and collected on each shipment.
- CLEANING:
Cleaning Container Fee is the fee for cleaning the Container after the goods are sent to the receiving location. Each row will have a different fee depending on the type of Cont.
- CFS:
Every time there is an odd shipment of export/import goods, Consol/Forwarder companies have to unload the goods from the container and put them into the warehouse or vice versa and they collect CFS fees. This fee can be collected at the sending or receiving point and is collected according to the cbm of the shipment (only applies to LCL retail goods).
- DO:
DO is the delivery fee, collected at the receiving location and collected on each shipment. Shipping lines will export DO for importers to receive goods. In addition, if the shipper or consignee asks you to do the paperwork to declare the goods, etc., there will be another DO fee, Document Fee.
- THC:
THC or Terminal Handling Charge means handling fee (bridge, port). Is a fee collected on each container to offset costs for cargo handling activities at the port including: loading and unloading, transportation, yards, etc. This fee is usually collected at the sending/receiving point and collected at the ends of containers.
- THD:
THD (Terminal Handling at Destination) is the wharf fee collected at the destination. The fee depends on the type of container.
- SEAL:
Seal (sealing fee) is the fee for purchasing the Seal to seal the container, ensuring the safety of import and export goods as well as facilitating the monitoring of import and export customs. This fee is charged per container. There are also fees for CIC, GRI, IFB, IFS,...
Refund acceptance process for Reimbursement fee
Proship has clarified what Reimbursement Fee is. Next is the process for accepting reimbursement of the Reimbursement fee:
Step 1
The importing party requires its bank to find a first-class bank to accept payment of the bill of exchange drawn by the exporting party, through the issuance of a discounted, irrevocable L/C, to ensure protect the interests of the exporter.
Step 2
The importer's bank sends the first-class bank issuing the L/C a commitment to repay the bills of exchange issued by the exporter upon maturity.
Step 3
The first-class bank then issues an irrevocable, discounted L/C to the exporter, committing to pay the exporter's draft when the shipping documents are fully presented and in accordance with the terms and conditions. conditions in the L/C.
Step 4
After delivery, the exporter makes two identical drafts of equal value along with the shipping documents, and presents them to the discounting bank. The bank checks the draft (first copy) and accompanying documents. If it complies with the conditions of the L/C, the bank will discount and pay immediately.
Step 5
The negotiating bank sends the bill of exchange (second copy) with shipping documents to the first class bank that issued the L/C, with a request to accept and pay the bill.
Step 6
After review, the first-class bank will sign the bill of exchange and send it back to the negotiating bank, and at the same time deliver the shipping documents to the importer.
The condition for doing this is that the importer must sign a commitment to accept repayment when the bill of exchange matures. If the documents do not match the terms specified in the L/C, the importing party has the right to refuse to sign the commitment.
Step 7
When the bill of exchange is due, the importer transfers money to the first-class bank issuing the L/C to revoke the previously signed repayment commitment. The first class bank will then pay the beneficiary of the bill of exchange according to the demand for payment.
What is Reimbursement Fee , benefits, how to calculate fees, fee payment process, how to accept refunds,... are the contents that Proship has conveyed to your business. For any questions related to fees and surcharges in import and export, you can leave a comment below and when you need to use the cheap Multimodal Transport Service, contact 0909 344 247 .
