Terminal handling charges

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2011 How the THC charges are billed by the shipping lines. do they charge as per Port tariff or as per their own slab rates.

During audit i hv observed that THC is different for different shipping lines.

How we should cross verify the THC.Either with Port tariff or with Shipping lines slabs

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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11 February 2011 In Circular F.No.B 43/1/97-TRU of June 6, 1997, the CBEC has clarified that for computing the value of the services provided by a CHA, payments made by the agent on behalf of the client such as statutory levies, that is, Customs duties, port dues, etc., and various other reimbursable expenses can be excluded.

link is :-

http://www.oocl.com/NR/exeres/AB6C4DA6-FD2E-4304-874A-53E51D371130.htm

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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11 February 2011 http://www.pswcorp.com/web/cfsdapperrate.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2011 Dear sir,

Thanks for d response.

My query is not regarding value of services to be included.

But want to know that whether shipping lines should charge THC based on port tariff or they can charge high rates as per their slabs to the Exporter/shipper.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Regarding **Terminal Handling Charges (THC)** charged by shipping lines:

* **THC is generally billed by shipping lines as per their own published slab rates or tariff**, not necessarily strictly according to the port’s official tariff.
* Shipping lines negotiate and decide their THC rates independently, which may vary from port to port and among different shipping lines.
* These charges include handling the container at the terminal, and shipping lines often incorporate their own service costs, overheads, and profit margin.
* Hence, **THC differs between shipping lines and may not align exactly with port tariff schedules**.
* During audit or verification, you can check:

* The **shipping line’s published tariff or rate card** for THC.
* **Compare with the port’s published THC rates**, but understand that shipping lines can charge more due to their additional handling/service costs.
* Also, verify if any agreement exists between the shipper and the shipping line specifying the rates.

**In short: Shipping lines can charge THC based on their own slab rates, and not necessarily restricted to port tariffs.**

If you want, I can help you draft a checklist or procedure to verify these charges during audit. Would you like that?

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