Hi all, have been a silent observer of these pages for some time, but now find myself in the unusual position of being without answers hence; my first post!

I have imported some goods (LCL) from China, FOB. The fee was paid to the supplier and the goods shipped without issues. I asked a clearing agent in Felixstowe for an estimated price to handle the goods (take delivery, pay tax and release them to me for collection).

I was given a list of things that I would have to pay such as dti fee, customs entry prep, use of defferment, port fees etc. - all seemed fair so I proceeded.

It has now came to the point where I have received the invoice, but I was shocked to find that it now includes a "China Import Service Fee," a "LCL" charge that seems to be over the odds (I was told £50 per tonne, and I have 750kg - the fee charged is 105.52) and an "Exchange Rate Surcharge". It also includes a "Documentation" fee

I asked why I was charged these and was told

"
China Import Service Fee - Is an overseas charge, I have been advised by the co-loading agent that this should be agreed with the supplier that this is to be collected in the UK.
Exchange rate Surcharge – Is to compensate for the low rate of exchange between currencies.
Documentation – Is the charge for issuing the documents, ie the original bills of lading.
ISC (Handover) – This is the cost they charge for handing the shipment over to another agent.
LCL – The co-loading agent cofirmed to me that they charge ?50 per one tonne or two cube (which ever is the larger amount)
"

Does all this seem to be correct? Why should I compensate for a low exchange rate? I am guessing I would not be refunded if the opposite situation was the case? What currency is being converted as I am paying a British company in GBS? Does the documentation not get included with the shipping terms? Who is the co-loader? And who would I be paying the "overseas fee" to?

Sorry for the long post, but it all seems very confusing.

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Last edited by canada; 07-07-2009 at 01:05 AM. Reason: wrong font size

Correction: I meant to say I paid CIF, not FOB.

Hi Beatlebum,

Unfortunately the above is correct - Shipping LCL and not a full container does cost a little more.

If exporting out of china you will be paying in dollars (except the fees in the UK). The exchange rate surcharge happens when the shipper gives the invoice total to HMRC and pay the VAT using the deferment account. Sometimes the exchange rate can fluctuate to a degree were you will have to pay more VAT etc.

However, your supplier out of china should be paying the fees there end and you only picking up the fees this end along with the shipping cost.

Also ALWAYS use one agent that has worldwide offices and this will reduce the cost.

Hope that makes some sense.

Steve.

Thanks for the reply. There are still a few things I do not understand...

If I pay the UK agent a fee for paying the VAT and duty, is this not in GBS? Or does the shipper pay the tax (in dollars), then the agent pays the shipper (then I pay the agent!)?

Also, if I agree a CIF price with my supplier, should this include these which, as you say, are from the Chinese side? So far, there has been no mention of any other fees other than the price I agreed with the supplier - CIF and the fees I agreed with the agent here for paying the tax and handling the goods. I had not heard of or from a Chinese agent and was not aware there was one involved...

The question is: Is this just my niiavity/ignorance of the process, or am I being misled/should I demand my supplier covers these costs?

Thanks

Michael

The UK Agent will pay the TAXs in GBP but im guessing your invoice from your supplier will be US Dollar?


Did you buy the goods on an FOB basis? If yes, then your supplier is required to pay the charges his end.

All the other fees are quite normal when using a couple of frieght agents.

Next time use Expeditors - They handle all our imports and some exports. They are a global company and they have never let us down.


Hope this helps.

No I bought the goods CIF. Isn't that more 'comprehensive' than FOB? The supplier quoted me a price to my port here- there was no mention of any other costs and I didn't use a Chinese agent (not directly anyway). The agent here says it is an international fee hence the payment in foreign currency and said,

"The Co-loading agent is Bronel Group Ltd, the china import service fee is a charge they are told collect from their agent overseas (it is an outstanding charge from overseas, if you think this charge should have been covered by your supplier it will have to be taken up with them as Bronel are instructed to collect this charge here.) ".

However, I emailed the supplier who said

"according to our export agent,the 'China Import Service Fee' and 'Exchange Rate Surcharge' is charged by your government,it's not from our company or from china.
'China Import Service Fee' is charged as usual,'Exchange Rate Surcharge' is a new fee,maybe it is because of the unstable exchange rate."

I just want to know who I am paying what and why! That you for the recommendation - I'll certainly try them next time.

*thank you