Extra Charges refer to additional fees incurred in international trade beyond the base price stipulated in the contract (such as FOB, CIF, etc.) due to specific reasons. Common scenarios include: order changes, special packaging, expedited shipping, additional documentation, port congestion, fuel surcharges, currency depreciation surcharges, etc. When using this term, it is necessary to clarify the party bearing the costs (buyer or seller), the billing basis (e.g., per shipment, by weight, by percentage), and the payment timing to avoid disputes. Unlike 'commission' or 'discount', extra charges are not price adjustments but compensation for additional services or unexpected costs; compared with specific fees such as 'demurrage' or 'detention', their scope is broader. Note that contracts should list possible extra charge items and caps to prevent arbitrary price increases by the other party. In quotations or invoices, Extra Charges are usually listed separately for total cost calculation.
📝 Examples
1. Because the buyer requested changing the original standard packaging to wooden crate packaging, the seller will charge an extra fee of USD 5 per crate. (Illustrates extra charges arising from packaging changes)
2. Due to a strike at the destination port causing cargo delay, the shipping company charged the cargo owner extra fees such as port congestion surcharges, which are borne by the buyer as stipulated in the contract. (Illustrates extra charges caused by unexpected situations and the responsible party)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner