Key International Trade Costs for Cross-Border E-Commerce Sellers Aside From THC

In addition to THC, what are the common fees in international trade? Cross-border e-commerce sellers who are unclear about this should take note.

In today's thriving cross-border e-commerce industry, more and more businesses and individuals are entering the field of international trade. However, for newcomers, the complexity of international trade often leaves them at a loss. Among these challenges, calculating and understanding various fees has become a major difficulty. When it comes to international trade fees, many people first think of THC Terminal Handling Charge, which is the terminal handling fee. However, in fact, throughout the entire process of international trade, there are many other fees that need special attention besides THC. These fees not only affect transaction costs but may also determine whether an order can be smoothly executed.

As part of port services, THC is one of the necessary fees when export goods are transported from the yard to the ship. But besides this, there are still some other common fees that cannot be ignored. For example, customs clearance fees are an important expenditure. Customs clearance refers to the process of submitting relevant information about the goods to customs for review, usually completed by professional agency companies. Depending on different countries and regions, the standards for customs clearance fees may vary, but generally speaking, they belong to fixed costs. If cross-border sellers choose to handle customs clearance procedures themselves, they will need to invest more time and energy and face higher risks of errors.

Storage fees are another expense that cannot be ignored. With the development of the e-commerce industry, more and more products enter the international market through overseas warehouse models. In this case, goods may need to be temporarily stored in local warehouses before arriving at their destination. The storage fees incurred during this period are called warehousing fees. The specific amount of storage fees depends on factors such as the volume, weight, and length of time the goods are stored. When planning supply chains, it is particularly important to reasonably arrange inventory turnover speed.

Insurance fees are an additional cost to ensure the safety of goods. In international transportation, due to the long distance and involvement of multiple modes of transport, the risk of damage or loss of goods is relatively high. To reduce the economic losses caused by such events, many enterprises choose to purchase commercial insurance. Insurance rates are usually determined based on factors such as the value of the goods, the mode of transport, and the destination. It is worth noting that some countries or regions have laws requiring certain types of goods to be compulsorily insured, so understanding local regulations is crucial for avoiding potential risks.

Inspection and quarantine fees are also a part that cannot be overlooked. With the increasing awareness of global food safety, countries are strengthening quality supervision of imported food and other sensitive commodities. When these goods enter the country, relevant departments will conduct strict inspections to ensure compliance with hygiene standards. This inspection process will incur certain costs, and the specific amount depends on the type of goods and the number of inspection items.

Finally, we must mention exchange rate fluctuation risks. For enterprises engaged in transnational trade, exchange rate changes directly affect profit margins. Especially when using foreign currency settlement, the actual amount paid by buyers may change due to fluctuations in the exchange rate. How to effectively manage foreign exchange risks has become one of the problems that managers of enterprises must face.

In summary, in conducting international trade business, in addition to THC, there are also various fees such as customs clearance fees, warehousing fees, insurance fees, and inspection and quarantine fees that need to be considered. Although these fees seem trivial, they constitute an indispensable part of the entire trade chain. For newcomers, doing homework in advance and familiarizing themselves with relevant rules are particularly important. Only by fully recognizing the existence of these fees and taking corresponding measures to deal with them can one make their cross-border business go further and more steadily. As a responsible person of a well-known logistics platform once said To successfully open up overseas markets, one must learn to examine every link of cost structure with a holistic perspective. It is hoped that this article can provide some useful insights for cross-border e-commerce practitioners.