Foreign-trade Glossary + Calculators
Charges
Customs Clearance Fee
A service fee charged by a customs broker or forwarder for handling import/export clearance declarations, separate from duties and import taxes.
A Customs Clearance Fee is the service fee a customs broker or forwarder charges for handling import/export clearance declarations, preparing and filing the customs entry, classification, liaising with customs and supporting inspections. It is an agency service fee and is distinct from the duties, import VAT/consumption tax payable on the goods themselves, which are calculated separately.
- There is a clearance fee at both ends: China export declaration is borne by the exporter/forwarder, while who bears import clearance and taxes is set by the Incoterms rule.
- Responsibility boundary: under FOB/CFR/CIF/DAP/DPU the buyer handles import clearance and import duties; only under DDP (delivered duty paid) does the seller take on import clearance and all import taxes.
- Watch-out: the clearance fee excludes duty; a DDP quote must fully include the destination country's duty, VAT and broker fee or it can easily turn into a loss; an incorrect HS code directly affects the rate and clearance speed.
FAQ
- Does the customs clearance fee include duties?
- No. The clearance fee is only the broker's service charge for the declaration; duty and import VAT/consumption tax are taxes assessed separately on the goods' value and HS-code rate, and must be paid on top.
- On DDP terms, who is responsible for import clearance and taxes?
- Under DDP the seller handles import clearance in the destination country and bears all import duties and taxes. Before quoting, verify the destination HS-code rate, VAT and local broker fees, and confirm the seller is even eligible to clear customs there, otherwise the risk is high.
Related terms
Sources: https://www.iccwbo.org/business-solutions/incoterms-rules/incoterms-2020/ · http://www.customs.gov.cn/