Bee On Trade

Origin Charge


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Understanding Origin Fees in Shipping

What Are Origin Fees in Shipping?

Origin fees in shipping cover goods and services provided before a shipment departs from the harbor or airport of origin.

Who Is Responsible for Paying Origin Fees?

The obligation to pay origin fees depends on the incoterms governing the consignment.

When is the Importer Obligated to Pay Origin Fees?

If the shipment is moving under EXW (Ex Works) conditions, the importer may be required to cover origin charges.

What Do Origin Fees Include?

  • AMS Charge
  • CFS Cost
  • Customs Clearance for Export
  • Documentation Entry Fee (covers the issuance and sending of bills of lading)

Determining Responsibility for Origin Fees

Before shipping commences, it's crucial for the importer and supplier to agree on who will bear these costs.

Origin fees cover goods and services delivered before a shipment leaves the harbor or airport of origin. Who covers origin fees? Depending on the incoterms that the consignment is traveling under, the importer may or may not be obligated to pay origin fees. Because Beeontrade will be handling the shipment from the supplier's location, if the shipment is moving under EXW conditions, for instance, Beeontrade will invoice the importer for origin charges. These origin fees could include, among others: 

● AMS charge 

● CFS cost 

● Customs clearance for export 

● Documentation entry fee (covers the cost of issuing and sending bills of lading) Before the shipping starts, the importer and their supplier should determine who will bear which costs.

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