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Who is responsible for the fees incurred by the goods at the customs in the destination port?
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We recently delivered a shipment to the Port of Los Angeles in the United States. The client informed us via email that the goods were subject to a random inspection by customs, resulting in inspection and storage fees of $1,500, which they require us to cover. The contract stipulates CIF Los Angeles, but the terms do not explicitly specify who is responsible for customs fees at the destination port. The client claims that under CIF terms, the seller is responsible for all costs until the goods reach the destination port. Is this interpretation correct? Should we pay this amount?
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
The responsibility for port-of-destination customs fees is primarily determined by the trade terms agreed upon with your clients. Taking CIF as an example，the seller bears the freight and insurance costs to the port of destination，but the risk transfers once the goods are loaded onto the ship. Inspection fees，storage fees，and other expenses incurred at the port of destination are generally borne by the buyer. However，there are three compliance risks to be aware of。
1. If you have previously committed to "clear customs on behalf of the buyer" via email or if the shipping documents show DDP terms，this may constitute a shift in liability。
2. If you use your tax ID or guarantee account to declare the goods，the customs authorities may retroactively investigate your actions。
3. If inspections are triggered due to errors in your declaration elements (e.g。HS code，product description)，the buyer has the right to claim compensation。
It is recommended to immediately review the contract，customs declaration documents，and communication emails with the client. Require the client to provide official customs payment notifications and inspection records to avoid paying unreasonable fees.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
From the perspective of logistics practice, the issue of who pays the customs fees at the destination port has been largely settled by the trade terms. Under CIF terms, you only need to handle the freight and insurance fees, while the inspection fees and storage fees at the destination port are part of the import costs and should be borne by the buyer. In terms of operational procedures, these fees are prepaid by the destination port agent and then collected from the consignee. Currently, you need to do three things: First, ask the client to provide the customs inspection notice and a detailed list of fees; Second, confirm whether your freight forwarder has mistakenly issued the invoice; Third, clearly inform the client that under CIF terms, the fees are the buyer's responsibility. However, if the inspection is caused by your incorrect documentation, you can negotiate to bear part of the costs. Remember, don't easily advance the payment. Once you open this precedent, all future destination port fees will be charged to you.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
In business negotiations, handling such fee disputes requires a three-step approach. First, respond professionally and firmly via email, attaching an official explanation of the CIF terms to clarify the cost boundaries, while phrasing it diplomatically: "According to international trade practices, such fees are borne by the importing party. To support you, we can assist in verifying the details." Second, if the client is important and the amount is not significant, propose: "We will cover 50% of the fees this time as a gesture of goodwill, but future terms must be specified in the contract," turning the concession into a bargaining chip for the next round. Third, regardless of the outcome, it is essential to subsequently include a clear clause in the contract stating: "Port of destination customs fees shall be borne by the buyer." Maintain a professional attitude and clear position, while ensuring the expression preserves the client's face.