Tonnage Dues

Tonnage Dues are a type of user fee levied by customs on foreign-flagged vessels entering and leaving domestic ports, based on their net tonnage, and form part of port charges. The levy targets internationally trading vessels and is usually paid by the shipowner or ship's agent to customs upon port entry. The rate varies according to the vessel's tonnage and whether a reciprocal treaty exists with the home country. It is commonly encountered in seaborne imports and vessel port calls. Note: This tax differs from customs duty and VAT; it is not directly levied on cargo but on the vessel itself. If tonnage dues have been paid, other port user fees (such as lighthouse dues) are not charged, but the validity period (typically 90 days or 1 year) must be observed. It differs from 'port disbursements' in that tonnage dues are a mandatory government tax, whereas port disbursements are service fees collected by port authorities. Foreign trade practitioners should factor this cost into quotations, especially for bulk cargo shipments where the impact is significant.