Hi,

I am Pavan i have a doubt regarding destination charges,

Recently we shipped a consignment to Kiev, Ukraine by sea the terms of delivery is CIP-kiev and it was a LCL Shipment later the shipper has sent a debit note to the buyer as "Destination Charges" and asking them to pay to move the shipment to destination now finally after much argueing we had to pay for it to avoid demurages Ok So now i would like to know as to ,how can i ensure that this does'nt happen in the future we have a lot of export shipments and it may repeat again, how do i ensure that this does'nt repeat again is there any way i can verify about these charges before, please advice

Thanks

Quoting from [pavanvenkatesh]:

Hi,

I am Pavan i have a doubt regarding destination charges,

Recently we shipped a consignment to Kiev, Ukraine by sea the terms of delivery is CIP-kiev and it was a LCL Shipment later the shipper has sent a debit note to the buyer as "Destination Charges" and asking them to pay to move the shipment to destination now finally after much argueing we had to pay for it to avoid demurages Ok So now i would like to know as to ,how can i ensure that this does'nt happen in the future we have a lot of export shipments and it may repeat again, how do i ensure that this does'nt repeat again is there any way i can verify about these charges before, please advice

Thanks

CIP Kiev, Ukraine  that means the shipper must buy the insurace for consignee. It is essential to understand the international trade terms.

Quoting from [zoesarler]:

CIP Kiev, Ukraine  that means the shipper must buy the insurace for consignee. It is essential to understand the international trade terms.

I know the matter of doubt is not the insurance ( which was taken care of by us as agreed) but here the shipper held the shipment in a intermediate port and asked the buyer for money  thats what i want to avoid in the future

I have had a similar situation earlier. You must always clear with the forwarding company if their quotation includes any destination fees. (Some forwarders interpret CIF differently than the Incoterms, they give you the lowest possible quotation excluding these fees as they know the buyer would pay them if they want to have their goods - this is highly unethical but happens sometimes). Tell the forwarder you are ready to pay the destination fees (usually handling and loading in the destination port), or tell your buyer it would be their responsibility.


c[]

Quoting from [tiffanyshen]:

Quoting from [pavanvenkatesh]:

Hi,

I am Pavan i have a doubt regarding destination charges,

Recently we shipped a consignment to Kiev, Ukraine by sea the terms of delivery is CIP-kiev and it was a LCL Shipment later the shipper has sent a debit note to the buyer as "Destination Charges" and asking them to pay to move the shipment to destination now finally after much argueing we had to pay for it to avoid demurages Ok So now i would like to know as to ,how can i ensure that this does'nt happen in the future we have a lot of export shipments and it may repeat again, how do i ensure that this does'nt repeat again is there any way i can verify about these charges before, please advice

Thanks

 CIP-kiev means the shipper should pay ocean freight and insurance & delivery charge to the consignee at destination.But the other charge at destination should be paid by the cnee

Quoting from [Gabor Bathori]:


I have had a similar situation earlier. You must always clear with the forwarding company if their quotation includes any destination fees. (Some forwarders interpret CIF differently than the Incoterms, they give you the lowest possible quotation excluding these fees as they know the buyer would pay them if they want to have their goods - this is highly unethical but happens sometimes). Tell the forwarder you are ready to pay the destination fees (usually handling and loading in the destination port), or tell your buyer it would be their responsibility.



c[]

yes i had verified it with the forwarder but in this case the forwarder was demanding these charges even before the consignment reached the final destination should'nt he take it to the destination first then the consignee would havepaid for it

Dear customer.

 

 I recommend you when you made a request to any company, you will need to ask to your supplier to send your products door to door, because you pay all the movements and taxes by the company supplier, so you only need to wait your products and the supplier have the consignee to do everything.  They contact an agent in your country and send you the total price before send the products, so you have the benefit to decide if you are agree or not

Don worryagain.

 

 

I see the problem... well, the forwarder has to pay these fees on spot when the loading/handling happens. Now since the forwarder has only a contract with you it is obvious that they do not want to give a credit to your buyer since they have no legal contact to the buyer, so to secure themselves they demand the payment while they are in possession of the goods (in theory you buyer should pick up the goods himself in the destination port).


If I were you I would pay all CIF costs, including destination fees next time to avoid such controversy (which, in theory, would be normal), and build it into the CIF price. If you want to keep your buyer you can tell them you would pay all costs from next time as a compensation for the inconvenience (they pay it anyway in the CIF price).


c[]

Quoting from [pavanvenkatesh]:

 

The terms of deliverey should be clearly understood and discussed with the shipping agency The first and foremost is to select a shipping agent who has counterparts in the importing country. The contract with the shipping agent should be drawn out, which clearly states all charges at the destination.

another way out out is the charges that you have had to pay for this shipment you could add to you next shipment and pro-rate it for higher or lower volume.  

 

 

Quoting from [pavanvenkatesh]:

Hi,

I am Pavan i have a doubt regarding destination charges,

Recently we shipped a consignment to Kiev, Ukraine by sea the terms of delivery is CIP-kiev and it was a LCL Shipment later the shipper has sent a debit note to the buyer as "Destination Charges" and asking them to pay to move the shipment to destination now finally after much argueing we had to pay for it to avoid demurages Ok So now i would like to know as to ,how can i ensure that this does'nt happen in the future we have a lot of export shipments and it may repeat again, how do i ensure that this does'nt repeat again is there any way i can verify about these charges before, please advice

Thanks

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Ukraine ports are very diffrent than other 1. world ports. Probably you will face same situation in your next shipment. To avoid you should work with an Ukraine shipping agency in India only.