What Is CIC Surcharge in Import–Export? Nature, Tax Treatment, and Key Considerations

What Is CIC Surcharge in Import–Export? Nature, Tax Treatment, and Key Considerations

In ocean freight operations, besides the main freight (O/F), businesses often face a “maze” of surcharges. One of the most confusing fees is CIC. Why do you still have to pay an “imbalance charge” even after the cargo has arrived at port? Should this fee be included in the customs taxable value?

Let Songwin International Logistics break down everything about CIC in this article to help your business optimize costs effectively.

1. CIC (Container Imbalance Charge / Equipment Surcharge)

CIC is a surcharge imposed by shipping lines to compensate for the cost of repositioning empty containers from surplus areas to deficit areas.

This is one of the most common local charges in international ocean freight.

2. Root Causes of CIC

The nature of this fee comes from the imbalance in global trade.

Practical example:
Vietnam imports a massive volume of raw materials and machinery from China. When cargo arrives at Vietnamese ports (Hai Phong, Cat Lai, etc.), goods are unloaded, leaving a large number of empty containers.

Meanwhile, Vietnam’s export volume back to China is lower, leading to a situation where:

• Vietnam has a surplus of empty containers
• China faces a shortage of containers for export

Result:
Shipping lines must relocate empty containers from Vietnam back to China (or other deficit regions). Transporting empty containers generates costs (fuel, space, handling) but no ocean freight revenue.

Therefore, CIC is applied to recover these costs.

3. Characteristics of CIC

• Not applicable on all routes:
  Most common on intra-Asia routes due to significant trade imbalances (especially imports from China, Korea, Japan).
• Seasonal fluctuation:
  CIC often increases during peak seasons (year-end, before Lunar New Year) when container shortages intensify. During low seasons, it may be reduced or removed.
• Variable rates:
  Depends on:
  • Shipping line policy
  • Degree of container imbalance
  • Container size (20ft, 40ft)

4. Who Pays the CIC?

CIC can be charged at origin or destination (more commonly at destination along with other local charges such as THC, D/O, cleaning fee).

The payer depends on Incoterms:

• EXW (Ex Works): Buyer (Consignee) pays all costs, including CIC
• FOB (Free On Board): Buyer pays ocean freight → usually pays CIC at destination
• CIF (Cost, Insurance & Freight) / CFR (Cost & Freight):
  Seller pays ocean freight, but:
  • CIC may be prepaid at origin
  • Or still charged to buyer at destination (Collect)

Important note from Songwin:
Even under CIF terms, CIC is sometimes still charged at destination. Parties should clearly agree in the contract whether CIC is included to avoid disputes.

5. How CIC Affects Customs Taxable Value

This is an important issue in customs declaration.

According to current Vietnamese regulations (e.g., Circular 39/2015/TT-BTC and amendments), CIC is considered an additive adjustment.

You must include CIC in the taxable value if:

• It is not included in the invoice price
• It relates to transportation to the first port of entry
• It is paid by the importer

Optimize Costs with Songwin International Logistics

CIC can impact your profit margins if not properly planned during negotiation. At Songwin, we support customers with:

• All-in pricing: Transparent quotations including surcharges
• Tax consulting: Accurate customs declaration to avoid penalties
• Documentation handling: Fast processing to obtain Delivery Orders (D/O) on time

Contact Songwin International Logistics today for the most optimal shipping solutions!