Deferment Fee

What is a deferment fee?

This is the cost for having your freight forwarder/customs broker pay the Duty and VAT to the customs authorities on your behalf, before billing it to you directly. It is often calculated as a percentage of the amount of Duty and VAT paid.

How does a deferment fee work?

Your broker pays the duty and VAT to the customs authority on your behalf, often through a deferment account, so the goods can clear without you paying at the border. The broker then bills you for the duty and VAT, plus the fee. Many brokers set the fee as a percentage of the amount they advanced.

The fee covers the broker's cost of carrying that money until you pay. Your invoice should show the duty, the VAT, and the fee as separate lines. Because the fee grows with the amount of duty and VAT, it matters most for high-duty goods, so ask your broker how they calculate it before you ship.

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