Under the FOB trade term, which party shall be responsible for appointing the import customs brokerage company?
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I am a procurement manager of a small and medium-sized enterprise engaged in electronic product import. This is my first time importing a batch of chips from Germany under FOB terms, while all previous shipments were under CIF terms where the supplier covers the full scope of customs clearance services. This time the supplier states that under FOB terms, they are only responsible for delivering the goods to the Port of Hamburg, and all subsequent procedures fall on my side.
The freight forwarder is urging me to find an import customs broker as soon as possible, but I am not familiar with the relevant procedures, and I am worried that choosing an unqualified broker will lead to customs detention of goods or high port demurrage. The goods will arrive at the Port of Shanghai next week, and I am very anxious now. I want to confirm exactly who shall be responsible for appointing the import customs brokerage company under FOB, and what common pitfalls should be avoided when selecting a qualified broker?
DanielYears of service：8Customer Rating：5.0
Legal AdvisorStart a Chat
Many enterprises have misunderstandings over customs clearance responsibilities under FOB terms，mistakenly assuming that the seller shall be responsible for import customs clearance. In fact，according to the provisions of INCOTERMS 2020，under FOB mode，the buyer shall undertake the import customs clearance procedures in the importing country and relevant brokerage fees. If the buyer fails to confirm the brokerage responsibilities in a timely manner，a series of subsequent problems may arise: after the goods arrive at the port，if no broker submits the declaration，the demurrage fee of 200-300 RMB/TEU per day will be incurred once the free storage period of the port is exceeded (the free storage period for general cargo at the Port of Shanghai in 2026 is 7 days)，and the container detention fee will be superimposed according to the standards of the shipping line. In severe cases，the goods may be temporarily detained by the customs，which will affect the production and delivery schedule.
The core of risk prevention is to take proactive measures in advance: confirm a customs broker with corresponding category qualification within 3 days after the goods are loaded on board (for example，chip products require 3C certification or import license)，and provide the broker with documents such as bill of lading copy，commercial invoice and packing list for pre-input of customs declaration form. If you start looking for a broker shortly before the goods arrive at the port，you can entrust the freight forwarder to recommend a compliant broker，and apply to the port for an extension of the free storage period for 1 to 3 days. Please note that the broker must be filed with the General Administration of Customs and has no violation records.
Exclusive Damage Control Tips: If the risk of port demurrage has already occurred，immediately ask the broker to submit an "urgent customs clearance application"，and contact the shipping line to apply for container detention fee reduction at the same time. If the goods are detained by customs due to the broker's operational error，you shall keep the brokerage contract and communication records，and pursue compensation liabilities through legal channels.
EllaYears of service：10Customer Rating：5.0
Senior Financial AdvisorStart a Chat
The attribution of import customs brokerage responsibilities under FOB terms is clearly stipulated in INCOTERMS 2020, that the buyer shall be responsible for the import customs clearance procedures in the importing country and relevant costs. In actual operation, a common misunderstanding is that the buyer fails to confirm whether the broker has the qualification for corresponding commodities. For example, chip products involve 3C certification or import license.
If the broker has no relevant experience, customs clearance delay will easily occur. It is recommended that when selecting a broker, you require it to provide customs declaration cases of similar commodities in the past six months, and verify its filing information on the official website of the General Administration of Customs, so as to avoid price review disputes or declaration cancellation and re-submission.
CharlotteYears of service：4Customer Rating：5.0
Currency Exchange AdvisorStart a Chat
Under FOB terms, the ownership of goods is transferred to the buyer after the goods pass the ship's rail, and the buyer shall take the lead in the whole import customs clearance process. If the buyer fails to arrange the broker in a timely manner, the goods will enter the demurrage state after arrival. The demurrage fee for general cargo at the Port of Shanghai in 2026 is 200 RMB/TEU per day, and the container detention fee is 100-300 RMB/TEU per day.
To avoid cost loss, confirm the broker within 3 days after the goods are loaded on board, and provide the bill of lading copy simultaneously for pre-input of customs declaration form, to ensure that the declaration can be submitted immediately after the goods arrive at the port. If the broker has high synergy with the freight forwarder, the document transmission time can be shortened and the customs clearance efficiency can be improved.
DavidYears of service：3Customer Rating：5.0
Business Development AdvisorStart a Chat
In FOB import, if the customs brokerage fee is directly related to the goods and not included in the transaction value, it shall be included in the dutiable value (Announcement No. 20 of 2016 issued by the General Administration of Customs). When selecting a broker, you shall clarify the cost composition (customs declaration fee, inspection fee, etc.), and require the broker to provide formal invoices for accurate calculation of customs duty and value-added tax.
If VAT deferral is adopted, make sure the broker is familiar with local policies to avoid impact on input tax deduction. In addition, the total amount of fees shall match the value declared on the customs declaration form to prevent verification by the State Administration of Foreign Exchange.
AlexanderYears of service：10Customer Rating：5.0
Senior Trade AdvisorStart a Chat
Under FOB terms, the import customs broker shall assist the buyer to complete the compliance of payment and settlement of foreign exchange. Before the buyer pays the purchase price, it shall ensure that the value on the customs declaration form is consistent with that on the commercial invoice, otherwise verification from the State Administration of Foreign Exchange will be triggered.
The broker shall check the consistency among the customs declaration form, contract and invoice, to avoid settlement problems caused by data mismatch. In 2026, the CIPS system will realize real-time data connection with customs data, so the broker shall ensure the accuracy of customs declaration data, so as to complete cross-border RMB payment smoothly and reduce the loss caused by exchange rate fluctuation.
SophiaYears of service：7Customer Rating：5.0
Senior Customs AdvisorStart a Chat
The FOB contract shall specify the clauses of import customs brokerage responsibilities, stating clearly that "the buyer is responsible for import customs clearance and corresponding brokerage fees", and specify the qualification standards for the broker (such as no violation record in the past year). If the seller fails to provide documents such as certificate of origin in a timely manner, the buyer has the right to pursue the seller's liability for breach of contract.
The brokerage contract shall specify the compensation clauses for operational errors, stipulating that if the goods are detained by customs due to the broker's fault, the broker shall compensate for the demurrage fee and corresponding loss of the goods. In addition, clauses of IPR Customs Protection Recordation can be added to prevent intellectual property infringement risks.
EmilyYears of service：3Customer Rating：5.0
Client Success AdvisorStart a Chat
From the perspective of supply chain optimization, when selecting a customs broker under FOB terms, the buyer shall consider the synergy between the brokerage service and logistics links, and give priority to brokers that have long-term cooperation with freight forwarders to shorten the document transmission time. If the enterprise has multiple import ports, it shall select a broker that provides nationwide inter-connected port service to reduce the complexity of cross-port operations.
Establish a broker evaluation mechanism, regularly assess indicators such as customs clearance timeliness and compliance rate, to optimize supply chain costs. Meanwhile, you can sign a long-term agreement with the broker to get preferential service fees.