When budgeting for imports, many businesses focus solely on the obvious costs—duties, taxes, and standard clearance fees. However, at MartinTrux, our work with importers across the UK, including through our customs clearance services in Felixstowe, has revealed that hidden and unexpected fees often have a significant impact on total import costs.
Beyond Basic Duties and Taxes
While our article on how much customs clearance costs covers the standard fees, there are numerous additional charges that can catch importers by surprise. Understanding these hidden costs is essential for accurate budgeting and maintaining competitive pricing.
Customs Examination Fees
When customs authorities select shipments for physical examination, the costs can be substantial and are typically borne by the importer.
Types of Examinations
Customs examinations vary in scope and cost:
- Document checks: The least intrusive and typically least expensive
- X-ray or scanning: Mid-level intervention with moderate costs
- Physical examination: The most comprehensive and costly option, requiring unloading and sometimes unpacking of goods
These examinations can be random or triggered by risk factors such as unusual shipping routes, new suppliers, or discrepancies in documentation.
Associated Costs
Beyond the direct examination fees charged by customs authorities, additional costs may include:
- De-vanning and re-vanning charges
- Storage fees during examination
- Labour costs for handling goods
- Delays in delivery resulting in production disruptions or missed sales opportunities
To minimise the risk of examinations, ensure all your documentation is complete, consistent, and accurate. As we’ve advised in our guide on navigating customs clearance, meticulous attention to detail can significantly reduce the likelihood of your shipments being flagged for examination.
Port Demurrage and Detention Charges
These time-based penalties can quickly accumulate and substantially increase your import costs.
Demurrage
Demurrage refers to charges for exceeding the allotted free time for containers at the port terminal. These fees typically range from £80 to £200 per container per day, depending on the port and shipping line.
Detention
Detention charges apply when containers are kept outside the port beyond the allowed free time. These fees encourage the prompt return of empty containers to the shipping line and typically range from £60 to £150 per day.
Avoiding These Charges
Planning is key to avoiding these costs:
- Ensure all documentation is prepared before goods arrive
- Pre-lodge customs declarations whenever possible
- Consider using customs clearance services with direct links to port community systems
- Arrange inland transportation in advance
Port Handling and Infrastructure Charges
Ports impose various handling fees that often aren’t included in initial shipping quotations:
Terminal Handling Charges (THC)
These cover the cost of moving containers within the terminal and can vary significantly between ports. At major UK ports like Felixstowe, these charges typically range from £100 to £200 per container.
Port Congestion Surcharges
During busy periods, ports may implement congestion surcharges. These are particularly common during peak seasons or when ports face operational challenges.
Infrastructure Fees
Many ports levy fees to fund infrastructure improvements. While individually small (typically £5-15 per container), these add to the overall cost.
Entry Summary Declaration (ENS) Amendment Fees
Changes to Entry Summary Declarations after submission often incur amendment fees. Common reasons for amendments include:
- Incorrect container numbers
- Weight discrepancies
- Changes to shipping schedules
- Errors in goods descriptions
These fees typically range from £35 to £75 per amendment but can be higher for multiple changes.
Currency Adjustment Factor (CAF)
For imports involving foreign currency transactions, shipping lines and freight forwarders often apply a Currency Adjustment Factor to protect against exchange rate fluctuations. This typically adds 1-3% to freight costs but can be higher in periods of significant currency volatility.
Brexit-Related Supplementary Charges
Since the UK’s departure from the EU, we’ve seen a proliferation of Brexit-related surcharges:
EU-UK Documentation Fees
Additional documentation requirements for EU-UK trade have led to new administrative charges, typically ranging from £25 to £75 per shipment.
Systems Access Charges
Some logistics providers charge for access to customs systems needed for post-Brexit trade, adding £5-10 per declaration.
Guarantee Management Fees
For goods moved under transit procedures, guarantee management fees may apply, typically 0.1-0.25% of the duties being guaranteed.
How to Protect Your Business
To guard against these hidden costs impacting your bottom line:
Request All-Inclusive Quotations
When working with shipping lines or freight forwarders, explicitly request quotations that include all potential charges. While some situational fees can’t be predicted, many standard surcharges should be included upfront.
Build Time Buffers
Many time-based charges can be avoided by building adequate time buffers into your supply chain. Allowing extra days for documentation processing and customs clearance can prevent costly demurrage and detention charges.
Consider Using a Customs Duties Agent
Professional customs brokers like MartinTrux have the expertise to anticipate potential charges and implement strategies to avoid them. As we’ve highlighted in our article on understanding the benefits of hiring a professional customs duties agent, this expertise often pays for itself through cost avoidance.
Review Historical Data
Regularly analyse your import costs to identify patterns and recurring charges. This data can help identify opportunities for process improvements that reduce unnecessary fees.
Professional Support for Cost-Effective Imports
At MartinTrux, we help importers throughout the UK navigate customs processes efficiently while minimising unexpected costs. Our customs clearance services in Felixstowe include proactive management of potential surcharges and strategic advice to streamline your import operations.
Contact us today to discuss how our customs clearance broker services can help you identify and reduce hidden costs in your import supply chain, improving your bottom line while ensuring efficient compliance with all customs requirements.