Origin charges will apply for every shipment, but who pays for them depends on the incoterm.
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What are origin charges?
Origin charges pay for items and services provided before a shipment has departed the origin seaport or airport.
Who pays origin charges?
Whether or not the importer is responsible for paying origin charges depends on the incoterms that the shipment is moving under. If the shipment is moving under EXW terms, for example, Flexport will invoice the importer for origin charges, because Flexport will be handling the shipment from the supplier’s premises.
Some of these origin charges may include:
- AMS fee
- CFS fee
- Export Customs clearance
- Origin document fee (covers the cost of issuing and sending bills of lading)
The importer and their supplier should agree who is responsible for which costs before the shipment begins.
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FOB (Free on Board)
FCA (Free Carrier)
EXW (Ex Works)