Understand shipping surcharges

        Sea transportation is the largest mode of transportation in China’s foreign trade. In addition to the “pure freight”, there are a variety of surcharges on the ocean bill, such as fuel surcharge, low sulphur surcharge, currency depreciation surcharge… Do these charges have to be declared to the customs when the goods are imported? Today we will take you to understand.

What is the definition of surcharge for carriage of goods by sea?

        Affected by ship, cargo, port and other aspects of various reasons, the carrier will bear additional shipping costs in transportation. A variety of surcharges charged by carriers to compensate for losses while keeping base rates relatively stable.

In practice, surcharges for shipping goods are common

        Fuel surcharge

        A surcharge in the calculation of freight in sea transportation, which is the surcharge charged to the carrier in addition to the sea freight in response to an increase in the price of fuel.

        Currency depreciation surcharge

        The fluctuation of currency value will bring the risk of exchange rate fluctuation to sea freight. If the currency depreciates, the shipowner will adopt the way of adding the currency depreciation surcharge to pass the loss to the shipowner.

        Low sulfur material surcharge

        A surcharge charged to cover the increased cost of low-sulphur fuels used by ships operating in the new sulphur oxide emission control zone.

What surcharge should I declare to the customs?

        According to the examination and approval of the customs of the People’s Republic of China import cargo customs value method “stipulated in article 5, the dutiable value of imported goods by the customs to review and determined on the basis of clinch a deal the price of the goods, and shall include the goods arrived in the territory of the People’s Republic of China enter site prior to discharge for transportation and related fees and insurance.

        Customs Declaration class

        I. Whether the surcharge occurred “before unloading”

        II. Whether it is related to transportation

        III. Whether the buyer actually pays or should pay

        As long as the above three points are met at the same time, the surcharge shall be included in the customs value.

        Take fuel surcharges. Because this cost occurs in the ocean transportation before unloading, at the same time, the increase of fuel price actually increases the cost of transportation, is a component of freight, so it should be included in the customs value of imported goods.

How to declare surcharge on sea freight?

        Ask questions: Our company is just engaged in import and export business. It is not clear whether the related shipping surcharge should be included in the customs value. What should we do?

        Answer: If it is not clear whether surcharge should be included in customs value, you can apply for price pre-determination to the customs.

So what is pre-determination?

        Pre-determination of price refers to the pre-determination of relevant elements and evaluation methods of customs value of imported goods upon the application of the applicant before the actual import of the goods.

        For specific operations, please refer to the Interim Measures of the Customs of the People’s Republic of China on The Administration of Pre-Ruling (Executive Order No. 236) and The Announcement of the General Administration of Customs on The Implementation of the Interim Measures of the Customs of the People’s Republic of China on the Administration of Pre-Ruling (Announcement No. 14, 2018).

What should I do if surcharge for Marine cargo transportation is omitted?

        I. If the surcharge for maritime goods is not reported before the import goods are released, it shall take the initiative to collect relevant supporting materials and explain to the Customs, apply for changing the content of the price declaration in a timely manner, and pay the corresponding taxes.

        II. After the release, if the imported goods inspection found that the surcharge of omission of sea shipment, but according to the law of the People’s Republic of China customs inspection regulations of the General Administration of Customs on dealing with active announcement of disclosure of tax-related violations related matters such as regulation, to declare to the customs or registered customs application active disclosure, correct to declare pay taxes.

        The customs remind

        Import enterprises should pay attention to the standard declaration of shipping expenses. If the additional maritime expenses of the enterprise are related to the transportation of the goods and are incurred before unloading at the destination and need to be borne by the buyer, they shall truthfully declare to the Customs or promptly apply to the Customs for amendment of documents. Some enterprises because the freight is often paid after the receipt of freight invoices and statements, customs declaration has been completed for several months, if the situation cannot be changed, you can apply to the customs after the active disclosure of declaration.

Article source：Xiao er of customs affairs