THE COMMON COST IN INTERNATIONAL ROAD FREIGHT TRANSPORTATION
In addition to the time and quality factors, the shipping fee issue is also a factor that many customer are interested in. So how are the shipping fees applied by companies? Let's analyze in detail the common costs when selecting to transport commodities by road with MDCT Logistics!
The common road transportation costs
When importing and exporting commodities by road, there are some common fees you may encounter, including:
Customs fee: It is understood as the amount of money that businesses and import-export service suppliers have to pay for the preparation of documents, export transportation fees or other small costs related to the service.
Trucking fee: It is a domestic transportation fee during import and export. For road transportation, this cost is often quite high because it involves many types of costs such as surcharges for loading and unloading truck containers, parking fees, and container towing costs,...
Export entrustment fee: In case sellers do not export by themselves or want to entrust the export to another logistics business, the forwarder will need to pay this fee for them.
Import entrustment fee: Import entrustment is when buyers do not import by themselves, but outsource a service company perform the import of commodities from abroad. At that time, buyers will have to pay an import entrustment fee to the intermediary specializing in this entrustment service.
Application fee for C/O form E: C/O form E is a certificate of origin form E, issued under the ASEAN-China Free Trade Area (ACFTA). This is a form of document that is used to confirm that the commodities originate from a member country of this agreement and helps the importer to enjoy special preferential import tax. Normally, with applicable commodities, buyers will require sellers to perform procedures to be granted a C/O form E. Sellers will pay costs to perform procedures to apply for a C/O form E for exported commodities.
Storage fee: In case the vehicle transporting export goods has to be stored in a warehouse or at a yard in the border gate, this additional cost will be required. It is depend on the policy of each freight company, using time and the type of goods.
Border guard fee: Fee to be paid to border checkpoints at border gates
Phytosanitary fee: An amount of money that an agency or individual owner of commodities or means of transportation to quarantine pays to the State budget for the quarantine of a shipment or vehicles.
Service fee for OPS: This is a fee paid to operation staff, clearing the commodities and ensuring the commodities are imported and transported to the warehouse.
Parking ticket fee: This is the cost for vehicle in and out and delivering goods
Value Added Tax (VAT): Usually applied to imported commodities. The import of commodities will be subject to Value Added Tax (VAT) in the importing country. When importing commodities, normally, the importer pays VAT at the point of import, which can then be refunded after providing the necessary documents to the tax authorities. Refunding of VAT is usually applied to the case where such commodities are used in production, business and import-export. VAT rates may vary depending on the country and type of commodities.
Other fees: In addition, commodities imported and exported by road may be subject to some other fees such as costs of dismantling, loading and unloading commodities; surcharge for late departure after 5 pm, Doc Quyt fee, 53 fee,...
Thus, depending on the size and transportation process of each business, and each country, the cost types when selecting road freight transportation may vary. The above costs need to be calculated and managed to ensure efficient and profitable road freight transportation activities. To have a better understanding of these fees and surcharges and cases when they apply, please contact MDCT Logistics at hotline 0865 763 169 to be consulted free 24/7 by my staff. Or you can leave your information at: hrs.mdctlogistics@gmail.com for consultation.
