Port Charges Explained: THC, Documentation Fees & Handling—Who Pays Under FOB, CIF & DAP?
Jun 26,2026
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One of the most common sources of confusion for first-time car importers is port charges.
A vehicle may be quoted at one price, but the final cost looks very different after adding terminal handling, documentation fees, and local destination charges.
One-sentence conclusion: Understanding which port charges exist at origin and destination—and who is responsible for each under FOB, CIF, and DAP—is the fastest way to avoid unexpected costs when importing cars from China.
At China Good Car, we help global buyers understand the full cost structure of vehicle exports. As one of China's first government-authorized used car export pilot enterprises and the founder of the China Auto Procurement Alliance, we provide transparent pricing with no hidden charges.
Port Charge Terminology: One-Sentence Definitions
Before comparing trade terms, it helps to understand what each charge actually means.
Common Port Fee Glossary
| Term | One-Sentence Definition |
|---|---|
| THC (Terminal Handling Charge) | Fee charged by the port terminal for handling cargo during loading or unloading |
| Origin THC (OTHC) | Terminal handling fee at the export port in China |
| Destination THC (DTHC) | Terminal handling fee at the import port in the buyer's country |
| Documentation Fee (DOC Fee) | Fee charged by the shipping line for preparing the bill of lading and related paperwork |
| B/L Fee (Bill of Lading Fee) | Similar to documentation fee, sometimes charged separately |
| Handling Fee | General fee covering cargo movement within a port or warehouse |
| Port Security Surcharge | Fee related to port security compliance |
| Bunker Adjustment Factor (BAF) | Fuel surcharge added by shipping lines based on oil prices |
| Currency Adjustment Factor (CAF) | Surcharge to offset exchange rate fluctuations |
| Customs Examination Fee | Charge when customs physically inspects cargo |
| Demurrage | Charge for keeping cargo inside the terminal beyond the free period |
| Detention | Charge for keeping containers outside the terminal beyond the free period |
FOB, CIF, and DAP: Who Pays What?
Trade terms determine the point at which responsibility transfers from seller to buyer.
Responsibility Comparison Table
| Charge | FOB | CIF | DAP |
|---|---|---|---|
| Origin THC | Seller | Seller | Seller |
| Export customs clearance | Seller | Seller | Seller |
| Documentation fee (origin) | Seller | Seller | Seller |
| Ocean freight | Buyer | Seller | Seller |
| Marine insurance | Buyer | Seller | Seller |
| Destination THC | Buyer | Buyer | Seller |
| Import customs clearance | Buyer | Buyer | Buyer |
| Import duties and taxes | Buyer | Buyer | Buyer |
| Local delivery | Buyer | Buyer | Seller |
Key Point
Under CIF, the seller pays freight and insurance but the buyer still pays destination port charges and import duties.
Many buyers assume CIF means "delivered to my door." It does not.
Quote Breakdown Example 1: FOB Shipment
A dealer in the Middle East buys a used BYD Han EV from China on FOB terms.
Quote Structure
| Item | Responsibility | Approximate Cost |
|---|---|---|
| Vehicle price | Seller | $18,000 |
| Origin THC | Seller | Included |
| Export documentation | Seller | Included |
| Ocean freight | Buyer | $800 |
| Marine insurance | Buyer | $180 |
| Destination THC | Buyer | $350 |
| Customs broker fee | Buyer | $200 |
| Import duty | Buyer | Depends on local rate |
| Local delivery | Buyer | $150 |
Buyer's Total Cost Estimate (excluding duty)
Vehicle FOB price freight insurance DTHC broker delivery
= approximately $19,680 before import duties
Quote Breakdown Example 2: CIF Shipment
A dealer in West Africa buys a used Chery Tiggo 8 Pro on CIF terms.
Quote Structure
| Item | Responsibility | Approximate Cost |
|---|---|---|
| Vehicle price | Seller | $14,000 |
| Origin THC | Seller | Included |
| Export documentation | Seller | Included |
| Ocean freight | Seller | Included |
| Marine insurance | Seller | Included |
| CIF total quote | Seller | $15,200 |
| Destination THC | Buyer | $400 |
| Customs broker fee | Buyer | $250 |
| Import duty | Buyer | Depends on local rate |
| Local delivery | Buyer | $200 |
Buyer's Total Cost Estimate (excluding duty)
CIF quote DTHC broker delivery
= approximately $16,050 before import duties
Important Note
The CIF price looks attractive, but destination charges are still the buyer's responsibility. Always calculate total landed cost, not just the CIF figure.
Practical Tips for Managing Port Charges
1. Always Request an Itemized Quote
Ask the exporter to separate:
Vehicle price
Origin charges
Freight
Insurance
This prevents confusion about what is and is not included.
2. Confirm Destination THC Before Booking
DTHC varies significantly by port and country. Always check with your local freight agent before finalizing a deal.
3. Budget for Customs Examination
Customs authorities may select your shipment for examination. This can add unexpected costs. Maintain budget flexibility of 5–10% for such scenarios.
4. Understand Your Free Time
Each shipping line and port offers a different number of free days before demurrage or detention begins. Confirm this before arrival.
5. Use Trade Terms Consistently
Make sure the contract, invoice, and bill of lading all state the same trade term. Inconsistencies can cause delays or disputes.
Why Importers Choose China Good Car
At China Good Car, we believe in full-cost transparency.
When we provide export quotes, we clearly separate:
Vehicle price
Origin port charges
Export documentation
Freight options
Insurance options
As one of China's first government-authorized used car export pilot enterprises and the founder of the China Auto Procurement Alliance, we help buyers calculate realistic total landed costs before committing to any shipment.
Whether you are buying a single EV or a container of mixed vehicles, our team can help you understand exactly what you will pay and when.
Final Takeaway
Port charges are not hidden costs—they are predictable costs that every importer should calculate in advance.
FOB means the buyer pays freight and all destination charges. CIF means the seller pays freight and insurance, but destination charges and duties remain the buyer's responsibility. DAP goes furthest, with the seller responsible for delivery to destination.
Knowing this before you sign a contract can prevent significant budget surprises.
Contact China Good Car
Need transparent vehicle export quotes or help calculating total landed costs for your import?
China Good Car
📱 WhatsApp: 8613802438565
✉️ Email: business@chnbestcar.com
🌐 Website: http://www.chngoodcar.hk
China Good Car – Government-Authorized Used Car Export Specialist and Founder of the China Auto Procurement Alliance.