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Are demurrage and despatch charges included in the dutiable value of imported and exported goods?

Are demurrage and despatch charges included in the dutiable value of imported and exported goods?

sofreight.com sofreight.com 2023-11-30 10:15:28

demurrage

 

Demurrage refers to the agreed payment to the carrier due to the failure of the charterer to complete cargo loading and unloading operations within the agreed loading and unloading time, resulting in ship delay due to no fault of the carrier.

 

dispatch payment

 

Dispatch fee refers to the payment paid by the carrier to the charterer or shipper or consignee at a pre-agreed rate because loading and unloading takes less time than allowed. Demurrage and despatch charges occur both at the loading port and at the unloading port.

 

Are demurrage charges and despatch charges included in the duty-paid value of imported goods?

 

According to the "Measures of the Customs of the People's Republic of China for Examining and Determining the Dutiable Value of Imported and Exported Goods", the dutiable value of imported goods shall be reviewed and determined by the Customs on the basis of the transaction price of the goods, and shall include the time before the goods arrive at the import place in the People's Republic of China for unloading. transportation and related costs and insurance premiums.

 

The above-mentioned demurrage and despatch charges belong to the category of transportation-related expenses, but they must be distinguished and defined based on the terminal operation node of "before/after loading and unloading" of imported goods at the unloading port. Taking the FOB (free on board) transaction method as an example, the analysis of whether demurrage and despatch charges incurred at overseas loading ports and unloading ports in my country are included in the duty-paid price of imported goods is as follows:

 

01 Demurrage charges incurred at foreign loading ports

 

The demurrage charges incurred at the loading port that are actually borne by the buyer belong to the cost of imported goods "before loading and unloading". Whether paid directly or indirectly, they should be included in the dutiable value of imported goods.

 

02 Dispatch expenses incurred at foreign loading ports

 

The despatch charges incurred at overseas loading ports are refunds obtained because the loading time is shorter than the estimated time, and are transportation-related expenses incurred "before loading and unloading". Therefore, they should be deducted from the total freight and should not be included in the import. The duty-paid value of the goods.

 

03 Demurrage incurred at the unloading port in my country

 

If demurrage has occurred when the actual unloading of the goods begins, it is a cost incurred "before unloading" of the imported goods, so the demurrage in this case must be fully included in the dutiable value of the imported goods; if the demurrage has not occurred when the actual unloading of the goods begins, If the demurrage fee is within a certain period of time, this kind of demurrage is a fee incurred "after loading and unloading" of the imported goods, so it is not included in the dutiable value of the imported goods.

 

04 Dispatch expenses incurred at the unloading port in my country

 

Since the despatch charges at the unloading port occur “after unloading” of the imported goods, the despatch charges cannot be deducted from the total freight, and therefore should not be deducted from the dutiable value of the imported goods.

 

Are demurrage charges and despatch charges included in the duty-paid value of exported goods?

 

When an enterprise exports goods, the demurrage and despatch charges incurred at my country's ports may also have an impact on the dutiable price of exported goods, and the impact of demurrage and despatch charges on imported goods is somewhat different from that of demurrage and despatch charges on imported goods. similar. According to the "Measures of the Customs of the People's Republic of China for Approving the Duty-Paid Value of Imported and Exported Goods", the dutiable value of exported goods shall include the transportation and related costs and insurance premiums before the goods are shipped to the export location in the People's Republic of China for loading.

 

Therefore, the transportation and related expenses of the goods separately listed in the price of the goods after they are shipped to the export location in the People's Republic of China and related expenses are not included in the dutiable value of the export goods. The two situations in which demurrage charges and despatch charges incurred by exported bulk goods at my country's ports have an impact on the duty-paid price of exported goods are analyzed as follows:

 

01 Demurrage incurred at my country’s loading port

 

If the demurrage occurs before the export goods are loaded, that is, if the demurrage has already occurred when the actual loading of the export goods begins, all the demurrage will be included in the dutiable value of the export goods; if the demurrage occurs after the export goods are loaded, that is, the goods are actually loaded. If the demurrage period has not yet occurred at the beginning, it will not be included in the dutiable value of the exported goods.

 

02 Dispatch expenses incurred at the loading port in my country

 

Since this fee occurs after the export goods are loaded, the despatch fee should not be deducted from the dutiable value of the export goods.

 

Three things companies should pay attention to

 

01

 

Import enterprises can try their best to conclude trade contracts with CIF landed or CIF Ex Tackle terms. Under the above terms, the unloading charges are borne by the seller, and the barge charges and terminal charges included in the unloading charges are usually included in the freight paid by the seller or paid separately. Import enterprises can avoid risks beyond their control.

 

02

 

Enterprises should pay attention to checking demurrage and despatch charges. Enterprises can compare the specific demurrage time and costs with the actual amount based on the ship transportation contract, ship operation unloading fact record sheet, unloading time calculation sheet and other information, and accurately grasp the confirmation principle of defining "before/after loading and unloading".

 

03

 

Enterprises should pay attention to making declarations and supplementary declarations to the customs in a timely manner.