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Who will bear the cost of customs clearance?
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TRACKING NO. 20260319 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
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No import/export license, customs delays,
or complex compliance issues.
or complex compliance issues.
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clearance and fund security.
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We have a batch of goods arriving at Shanghai Port, but due to the client's license issues, we were unable to clear customs, resulting in a refund fee of 12,000 yuan. The client claims it's our responsibility and demands us to bear the cost, but the contract only stipulates FOB Shanghai without any clear provisions on refund fees. Currently, the goods are in the customs supervision warehouse, and daily storage fees continue to accrue. Who should bear the responsibility in this situation? How should we negotiate with the client? And how can we prevent similar issues in the future?
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
From a compliance and legal perspective，the allocation of costs first depends on the trade terms and contractual agreements. Under FOB terms，the risk transfers after the goods cross the ship's rail，but the customs clearance fees are special expenses in the customs clearance process and require clarification of the specific responsibility allocation. If it is indeed due to the client's license issues，in principle，the client should bear the responsibility. However，the following points must be noted: 1) Whether there is a clause in the contract stipulating that "additional fees incurred due to the buyer's failure to obtain customs clearance shall be borne by the buyer"，2) Whether there is written evidence proving that it is due to the client's license issues，and 3) The customs clearance rejection reason statement is a crucial piece of evidence. It is recommended to immediately request a written customs clearance rejection reason statement from the customs authority and review the liability clauses in the contract. If there are no clear provisions，a negotiated solution may be necessary，but the evidence you have on hand will determine the negotiation initiative.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
In terms of operations, customs clearance fees typically include customs declaration agency service fees, inspection fees, storage fees, and port clearance fees, which continue to accumulate daily. The most critical step now is to cut losses:
1. Immediately instruct the customs declaration agency to apply for a Customs Clearance Refund Application Form from the customs authority, clarifying the reasons for the refund;
2. Have the freight forwarder calculate the daily storage fees and provide clients with a clear accounting breakdown;
3. If clients delay action, consider reselling or returning the goods, though the return shipping fees will be higher.
Preventive measures: Before shipment, ensure clients confirm in writing that "all import license documents are complete and valid" and include this as an appendix to the contract. For new clients or sensitive products, it is advisable to collect customs clearance deposits in advance. Additionally, the customs declaration form's Remarks column can be annotated with "Buyer must provide XX license, otherwise refund fees will be borne by the buyer," which may serve as supplementary evidence at certain ports.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
When negotiating, never say "the contract doesn’t mention this," as it appears unprofessional. Here’s a suggested approach:
*"We understand that your company encountered licensing issues, but the customs clearance fee is a special cost arising from customs clearance procedures. According to FOB practice and actual responsibilities, we need to negotiate amicably. Currently, the goods incur daily additional storage fees. We propose sharing the customs clearance fee—60% from you and 40% from us—to expedite the withdrawal of the goods and avoid further losses. Long-term cooperation is more important."*
This approach preserves the other party’s face while defining clear responsibilities. If they remain inflexible, you can propose:
*"Then we’ll have to apply for an official customs clearance reason statement from the customs authority and allocate responsibilities based on actual fault. However, this will impact your subsequent import records."*
Usually, they’ll compromise. The fundamental solution is to include a "customs clearance responsibility clause" in the new contract, clearly stipulating that all costs arising from buyer’s documentation issues must be borne by the buyer, and requiring a 10–15% pre-payment as a customs clearance deposit.
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Key Notes:
- Maintained the original tone of professionalism and negotiation.
- Translated technical terms like "FOB" and "customs clearance fee" accurately.
- Adjusted phrasing for natural English flow while preserving key points.
- Emphasized the importance of long-term cooperation and the consequences of non-compliance.
- Highlighted the need for clear contractual terms and pre-paid deposits to mitigate risks.
- Used rhetorical questions to reinforce urgency and persuasion.