What is Origin Charges?
Origin charges are the costs incurred at the place of export before the main international carriage begins, such as pickup and pre-carriage, warehouse handling, export packing, export customs clearance, documentation, terminal handling at the port or airport of loading, security screening and, for sea freight, verified gross mass (VGM) services. They are separate from the main freight and from destination charges, and may be billed by the forwarder, the carrier, terminal operators or customs brokers. Who pays depends on the Incoterms rule, since articles A9 and B9 of each Incoterms 2020 rule list the costs each party bears: under EXW nearly all origin costs fall on the buyer, under FCA the seller pays up to delivery at the named place including export clearance, and under FOB the seller pays until the goods are on board. In US ocean trades, carrier and NVOCC charges, including origin surcharges, must be in a published tariff or in a service contract or rate arrangement. Since 1 July 2016, SOLAS has required the shipper to provide a verified gross mass before a packed container is loaded on a ship.
Why it matters for forwarders
Origin charges are a frequent source of disputes because they are billed by parties who were not part of the sale negotiation, for example when an FOB seller is invoiced terminal handling by the buyer's nominated forwarder. Quote origin charges line by line, state the currency and basis (per shipment, per container, per kg or per cubic metre), and identify which lines are third-party costs passed through. On collect shipments under FOB or FCA, origin charges are often billed locally to the shipper, so confirm in advance who pays each line. Missing documents, late VGM submission or incomplete export declarations lead to rolled bookings and extra storage or amendment fees. In US trades, a new or increased tariff charge cannot take effect earlier than 30 calendar days after publication, so check tariff effective dates before passing on new origin surcharges.