Disbursement Service Fee

What is a disbursement service fee?

A disbursement fee is charged for clients who do not pay their duties and taxes directly to customs, or other government authorities, and request that Flexport does so on their behalf. This service fee is calculated as a percentage of those duties and taxes outlaid by Flexport.

The disbursement fee percentage will appear on client quotes; however, Flexport will not know how much will need to be outlaid until the shipment has cleared customs. Once that occurs, the final amount will be applied to the client’s invoice.

In the event the client pays duties and taxes directly to customs or other government agencies then they will not be subject to the disbursement fee on the amounts paid directly.

How can you avoid a disbursement fee?

You can avoid the fee by paying duties and taxes directly to customs or the relevant government agency. Because the fee is a percentage of the amount outlaid, importers with large duty bills often find direct payment worth setting up. Others accept the fee in exchange for not having to manage those payments themselves. Either way, check how your forwarder or broker handles duty payment before the shipment arrives.

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