When you receive a quote for double customs clearance services, you might think it’s more complicated and expensive than regular direct shipping. Where exactly do these costs come from? This article will unravel the mystery and provide a thorough cost analysis.
Key Point: You’re not just paying for transportation; you’re purchasing a professional, efficient, and segmented logistics solution. These costs are broadly composed of three main components: China departure costs, transit hub operations and customs clearance, and destination country customs clearance and delivery.
- China departure costs
This component covers all costs from the time your shipment arrives until it leaves the Chinese border.
Domestic handling fees:
Content: The labor and space costs for unloading, weighing, measuring, labeling, sorting, and loading cargo after the freight forwarder collects the cargo or you deliver it to the warehouse.
Why they arise: This is the starting point of the logistics chain, and the necessary physical handling is fundamental.
Customs Clearance Fee at Origin:
Description: Service fee paid to the customs broker for export clearance from China. This requires preparing a customs declaration form, contract, invoice, and other documents, which must be submitted to Chinese Customs by a professional customs broker.
Why it arises: A necessary legal procedure for legal export.
Domestic Transportation Fee:
Description: Trucking fees for transporting goods from a domestic warehouse to the port of exit (such as the Shenzhen land port).
Why it arises: The physical movement cost of the goods.
II. Transit Hub Operation and Customs Clearance Fees (the “first level” cost of double customs clearance)
This is a unique and core cost component of double customs clearance, primarily incurred in free ports such as Hong Kong and Singapore.
Cross-border Trucking Fee:
Description: Fees for transporting goods by truck from mainland China (such as Shenzhen) to a transit port (such as Hong Kong). This fee involves complex steps such as cross-border drivers and vehicle customs clearance.
Why it arises: It serves as a bridge to achieve “double customs clearance.”
Transit Port Customs Clearance Fee:
Description: A service fee paid to the local customs broker at the transit port for handling import transshipment registration and export declaration procedures for goods.
Why it’s incurred: Although customs clearance in Hong Kong is straightforward, it still requires professional compliance to ensure the legal “transit” of goods through the hub.
Transit Port Airport/Terminal Handling Fee:
Description: Costs incurred once goods enter the cargo terminal at the international airport at the transshipment port, including warehousing, security screening, palletizing (assembling small items into air containers), and document processing. This fee is typically charged by airport authorities and the freight forwarder’s operations team.
Why it’s incurred: Standard operating procedures for international air freight, ensuring that goods meet loading requirements.
International Trunk Freight Fee (Main Leg):
Description: Air freight from the transshipment port to the destination airport. This is the largest component of the overall cost.
Why it’s incurred: The core cross-border transportation cost. Freight forwarders can secure preferential freight rates from airlines by consolidating large volumes of cargo. This scale advantage is reflected in your quote.
- Customs Clearance and Delivery Fees in the Destination Country (the “Second Cost” of Double Customs Clearance)
After the goods arrive at the destination country, all costs incurred are similar to those for direct shipment, but handled by a more professional partner.
Customs Clearance Agency Fee in the Destination Country:
Content: This is a service fee paid to the local customs broker in the destination country (e.g., the US or Germany). This is one of the most valuable fees in the entire service. The customs broker handles communication with customs, document submission, tax calculation, etc.
Why it’s incurred: Local customs brokers are familiar with the country’s laws, regulations, tax policies, and communication procedures, making them key to efficient customs clearance.
Tariffs and VAT:
Content: Taxes paid to the destination country’s government in accordance with law. This is a collection and remittance fee and does not represent a source of profit for the freight forwarder.
Calculation: Customs Fee = Declared Value of Goods × Customs Rate; VAT = (Declared Value of Goods + Customs Fees + Shipping Costs) × VAT Rate.
Destination Airport Handling and Pickup Fees:
Description: Storage and handling fees incurred at the destination airport cargo terminal upon arrival, as well as the freight forwarder’s fees for arranging a vehicle to collect the goods from the airport.
Why Incurred: Standard charges at the destination airport.
Destination Delivery Fee:
Description: Fees for final delivery of the goods to the customer via local postal or courier services (such as UPS, USPS, and DHL).
Why Incurred: “Last-mile” logistics costs.
Potential Surcharges:
Description: Such as fuel surcharges, peak season surcharges, over-length and overweight surcharges, and storage and handling fees incurred for customs inspections.
Why Incurred: To address market fluctuations and special circumstances.
Summary: How to Understand a Quotation?
A clear quotation should clearly list the above fees. Key considerations:
Transparency: Are the fee items clearly listed? Or is it simply a “flat rate” that is vaguely mentioned?
Tax Terms: Is the quote DDP (Delivered Duty Paid) or DDU (Delivered Duty Unpaid)? DDP means the freight forwarder includes all taxes, and you need to confirm whether the quote includes estimated duties and VAT; DDU means these taxes are payable by the recipient.
Hidden Costs: Proactively inquire whether key items such as customs declaration fees and customs clearance agent fees are included to avoid later price increases.
In short, the cost of double customs clearance is a reasonable price to pay for the “segmented professional services” and “risk mitigation mechanism” you purchase. It purchases the efficiency of the Hong Kong hub, the expertise of the customs broker in the destination country, and the stability and controllability of the entire supply chain. Choosing a service provider that provides transparent quotes will help you understand the value of every penny and make more informed decisions.