Home – New Forums Logistics What are all these import charges!!!

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  • #986137
    B-M
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    So I’ve placed a few test orders and have calculated costs for delivery to Australia including duty and GST.

    First shipment arrived and no problem. That one was by air – TNT to be exact as only 40kg. GST, duty and custom clearance to pay but the costs were as expected.

    Second shipment arrived last week by sea and I’ve just being hammered by all these charges which I didn’t expect. I’ve got another shipment arriving this weekend also by sea and am using another freight forwarder as different supplier ….wham more charges which I didn’t expect. Obviously my homework wasn’t good enough though did ask what import fees to expect. Many of these were not mentioned so I’m a bit at a loss. I’ve copied the costs below for those interested.

    First shipment by sea – Goods C&F Sydney
    LCL – 1.8m3 – weight 300kg – arriving Sydney

    PORT SERVICE CHARGE – $182.60
    DELIVERY ORDER FEE – $65.00
    ISPS IMPORT FEE – $8.09
    AGENCY FEE AUD – $50.00
    TERMINAL – $41.50
    TERMINAL HANDLING CHARGE – $41.50
    ICS LODGEMENT FEE – $20.00
    CMR IMPORT FEE AUD – $10.00
    IMPORT PROCESSING FEE – $20.00
    PORT SERVICE FUEL SURCHARGE – $6.64
    CUSTOMS CLEARANCE – $145.00
    CUSTOMS ELECTRONIC FEE – $70.00
    QUARANTINE – $25.00
    AGENCY FEE – $25.00
    ACS COMPLIANCE FEE – $25.00
    Delivery to Inner Sydney was $400 so I hired a Bunnings trailer for $25.

    Second shipment by sea (pending arrival this weekend). Goods FOB China
    LCL – 7m3 – weight 800kg – arriving Sydney

    Destination Port Charges – $669.68
    Destination Terminal Handling Charges – $182.64
    Delivery Order Fee – $75.00
    Destination Security Surcharge – $25.00
    CMR Compliance Fee – $25.00
    Import Processing Fee – $10.00
    Origin Warehouse Fee – $108.61
    Port Service Fuel Surcharge – $24.35
    Sea Cargo Automation Fee – $20.00
    Customs clearance quote pending…

    Comments and positive criticism welcome….oh and if any of these charges seem a bit strange or on the expensive side please let me know.

    #1156483
    LucasArthur
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    Howdy B-M (is that your name?)

    Fees seem normal… LCL can always add $$ up pretty quick so your CBM rate can be higher than ordering a full container.. There are packing and unpacking fees traditionally bundled in there as well (consolidation & de-consolidation) etc etc

    Please, just be careful, never compare air (door to door service) to sea.. The fees vary significantly in both cost per CBM and the likes.. You really need to speak to a local agent (did you use the suppliers agents for these deliveries) as they will give you a break down on fees as well as the break even point on doing things by air or by sea and at what point you are better to avoid LCL and go Full Container as well.. you would be surprised…

    I also note, you appear to have not mentioned duties or GST.. how do these compare as the lodgement can vary from agent to agent as well…

    Before i add any more, it would be interesting as asked above if you sourced the agent of the supplier provided the service…. Just i tend to find speaking to a local agent they are pretty upfront and when you say “are there any other fees with this” they tend to cut to the chase and remove any surprises pretty quickly.. As long as you ask! sometimes new importers only ask closed questions and not something like “what other fees will be incurred”.. not trying to dumb it down for you, but others may overlook how to ask as well..

    Let us know how you go B-M…

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1156484
    LucasArthur
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    Oops,

    After all that, didnt answer your question “WHAT ARE ALL THESE IMPORT CHARGES!!!”.. In all honesty, to get the best answer you need to speak with your freight forwarder and they will go through line by line for you…

    They are literally processing fees incurred in the importation of a container (be it LCL or FCL)… Incurred by shipping company, govt, processing fees by freight forwarders etc etc..

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1156485
    Hatching_It
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    All looks pretty standard to me as well.

    Importing by sea is very different to importing by air. Usually, by air, your gear will just get straight to your door with no further fees or anything. But by sea, you really pay for additional fees as the container gets handled by the port and customs.

    Before we go any further, do you understand the different freight terms (FOB, CNF, LCL, FCL etc)

    By the way, that price for your 7CBM is very good for this time of year.

    Maclean

    #1156486
    Anonymous
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    Many thanks for all your responses.

    The first freight forwarder was through the supplier, with the forwarders agent in Sydney handling the processing. The second one was sourced by me. Incidently the second forwarders freight charge to Sydney was incredibly competitive – $150 for 7m3 in LCL to Sydney. The second list of import fees is the forwarders agent’s processing fee.

    In another life about 20 years ago (and before the internet) I worked in exporting for a numer of years so am familiar with all the incoterms and logistics. I sourced and sent a very large variety of products all over the world. You name it and I’ve probably dealt with it. I also occasionally packed containers for clients as part of the job. I recall that shipping charges whether by sea or air freight charges could vary dramatically depending whether the forwarder was specialised in that destination.

    Anyway I just never expected so many import charges at the other end especially after I did ask for a costing…but I see now where I got unstuck. I wasn’t specific enough and based myself on what I received by air. Perhaps Australia also has more costs than elsewhere.

    As for the title “what are all these import charges” consider it more as an exclamation. I’m not seeking a full description of what they are from the forum as you all have better things to, and I can discuss these with the agent. I just really wanted to make sure they are standard. Separately I also noticed a few posts asking about such charges and thought I would provide a list as a quick comparison for others.

    As for duty this is 5% for my products and GST of course is 10%… though I’m a bit confused by SimplyReplica mentionning these can vary from agent to agent. Is this because some products could receive a different tariff classification?

    Anyway if all go well with these test products it looks like I may be better off doing a 20’FCL next time.

    Cheers
    Ben

    #1156487
    LucasArthur
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    B-M, post: 180413 wrote:
    As for duty this is 5% for my products and GST of course is 10%… though I’m a bit confused by SimplyReplica mentionning these can vary from agent to agent. Is this because some products could receive a different tariff classification?

    Anyway if all go well with these test products it looks like I may be better off doing a 20’FCL next time.

    Howdy Ben

    Yes, the processing and classifications can vary the amounts a tad.. not significantly though… As for container loads, yeah FCL will always be best, especially if getting a 40HC :D

    All the best mate, sounds like you are completely under control and now have a point of reference with the next few loads you may have coming..

    Feel free to update us.

    Cheers
    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1156488
    MH08
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    The duties are normal, ACFS are probably the best to use.

    I don’t notice the small fees associated by they do seem normal, anything brought in by sea is best ordered by container and solely your own container, it’s just to costly and difficult to manage different orders (other customers) into the same container.

    Ordering one pallet at a time from any country will price you out of the market by any competent competitor. Unless your the person that has the exclusive rights to the products and even then sometimes the ink is worth more then the rights. I’ve mentioned parallel importing before, just make sure there isn’t another business that can take your product from within the country.

    Prices can only varying from the country of origin or what port it’s coming from within the coasts of the country.

    #1156489
    Anonymous
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    SimplyReplica, post: 180421 wrote:
    Howdy Ben

    All the best mate, sounds like you are completely under control and now have a point of reference with the next few loads you may have coming..

    Feel free to update us.

    Cheers
    Jason ;)

    …I wouldn’t say completely under control, I might need a few more runs for that :)

    Many thanks all for your help.

    #1156490
    Petemac
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    Hi Ben, the actual freight cost on a ship is cheap but it is all the associated handling costs that people tend to forget about. With air freight it is only the one company that is doing the lot (sometimes via agents) hence the bill looks clearer but sea freight there are more hands involved. That being said, when shipping heavier weights, than sea freight as you know is still the cheaper option and I agree with previous comments about keeping tabs on when a full container becomes a cheaper option than LCL.

    All the best

    Pete

    #1156491
    Cat – GLC
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    Hi B-M,

    The good old import charges get most importers when they haven’t spoken to the right people.

    Those charges are pretty standard for sea freight. But with importing 7cbm via LCL I would seriously look at importing a 20GP container as depending on what time of year (as freight costs varies) you would be better off sending it FCL even if you don’t fill it all up.

    Looks as though you have learnt, but if you ever need any more guidance feel free to give us a yell.

    Cheers

    Cat :)

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