In import and export, the CIC fee is a sea freight surcharge usually collected at the port of entry because the shipping company charges the importer. CIC (Container Imbalance Charge) is the container unbalance charge. VinaTrain would like to send you the notes on CIC fees and when to calculate CIC into the taxable value.

Viewing: What is cic fee

CIC (Container Imbalance Charge) is a container unbalance surcharge collected by shipping lines (applicable to market trains) with the purpose of covering the cost of returning an empty container from a place where there is an excess of containers to a place where there is a shortage of containers for packing. export.

What is CIC Fee?

Which countries often charge CIC fees

Currently, countries with a lot of trade deficit such as Vietnam, the US and EU countries will have a huge surplus of empty containers, shipping lines need to return empty containers to the country of export surplus to build goods. This leads to an imbalance of containers, so the importing countries will often be charged CIC fees in ocean freight. CIC fees will arise at different times of the year, with a lot of imbalance, the carrier will The ship collects cic toll, if it is already balanced then this fee will not be collected. Currently, this fee is charged by shipping lines quite high, so it is also a concern of many shippers.

When and how will the CIC fee be collected

In fact, shipping lines only collect CIC once, which can be collected in the exporting or importing country (as long as someone pays the fee for them) but it is customary to charge this fee at the port of import. From the time of booking the freight, the two parties need to clearly agree on which CIC fee will be paid and specifically how much to avoid the situation that the shipping company collects 2 times the freight, or it is not their responsibility but still has to pay. .If the buyer pays CIC, this fee must not be included in the selling price. In case the seller pays CIC, this fee will be added to the selling price. So Who Bears CIC Fees? The fee will be added to the shipping fee of the shipper or consignee depending on the contract the two parties have agreed before.

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Issues to discuss around CIC (container Imbalance Charge) fees

This shipping company collects this fee on their own basis, so the exporter and importer really don’t know when there is a shortage of containers and when there is an excess of container or is there really an imbalance of containers between regions? In fact, there is not always an imbalance of the container and every shipping line is missing a container, but most shipping lines are flat about this fee by default, the person who suffers is of course the shipper. The problem is always pressing for businesses. The CIC surcharge is being pushed up by the shipping lines to a high port, there are still many ambiguities in many cases where the shipping company collects fees at both ends of both exporting and importing CIC. How many cases do you see the price? The freight is cheap, but the LCC is very high, including CC. This is also considered as the fact that the shipping company collects the CIC surcharge as a way to increase freight rates.

The input LCC including the current CIC does not have to be added to the taxable value

Does the CIC fee have to be added to the Import Tax Calculated Value

? Usually CIC is paid at the port of import, because the buyer’s payment is not included in the selling price, so the question of whether CIC must be added to the value Tax calculation is not interested by many businesses.

In this topic, we consulted a question from Dong Nai Customs that answered the question of business owners with the following content:

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Question: Regarding the CIC fee when making the import declaration, I add to the CIC fee, will this fee be a pre-tax fee or a tax copy (VAT included)?

“Customs value is the actual price paid up to the first import border gate. Transaction value is the actual price paid or payable for the imported goods after adjustment. The price actually paid or payable for the imported goods is the total amount paid or payable by the buyer, directly or indirectly, to the seller for the purchase of the imported goods.

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“g) Transport costs and costs related to the transportation of imported goods to the first import border gate, excluding the costs of loading, unloading and loading goods from the means of transport to the first border gate of importation. .

In case the costs of loading, unloading and loading goods from the means of transport to the first border gate of importation are included in the cost of international transport or included in the actual paid or payable price, the deducted from the customs value of imported goods if all the conditions specified in Clause 1, Article 15 of this Circular are satisfied.

g.1) The value of this adjustment is determined on the basis of the contract of carriage, documents and documents related to the transport of goods;”.

If in the contract of carriage, documents related to the transport of goods show the CIC fee, it is considered to be added to the dutiable value because it is related to the cost of getting an empty container to store the goods. imported, by the shipping company collects the importer.

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When declaring the taxable value of the fee, CIC recommends that the enterprise use the value before VAT calculation to avoid paying VAT twice for this fee.

Latest Update About not having to add CIC into the taxable value

If the enterprise has to pay the fees (D/0, CIC, Sanitation Cont….) referred to as local charges for short and this amount is not included in the selling price of the goods, the enterprise is not required to pay fees. adjusted and added to the import tax calculation value.

In case this amount is included in the total amount of goods actually paid to the seller, but the enterprise has lawful documents to determine the amount of the fee mentioned above, these fees may be deducted from the taxable value (value of the goods). customs)

Another note you need to know is that when receiving VAT invoices from LCC charges in the importing country, if the goods owner sees 10% VAT, this fee does not have to be added to the taxable value.

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If VAT is 0%, it will be added to the rental value. Currently, only a few businesses like Viettel Post or Vina Post allow 0% VAT, the rest more than 99% of transport units apply 10% VAT.

Download the official letter here: CV797TCHQ2019 – Determination of Import Taxable Value

Hopefully the article What is CIC fee presented by VinaTrain will help you clarify your questions about this fee. If you find it interesting, don’t hesitate to vote 5**** for this article.

The content of CIC and sea freight charges and surcharges is included in the practical import-export training program at VinaTrain training system, online import-export courses and direct import-export courses at VinaTrain. center. In addition, we receive training at the enterprise according to the order.`