YDG means the foreign customs fee. Its used for buyer’s import customs on export loadings, and used for shipper’s export customs on import loadings. Recent common mistake is to add this fee to freight charge in case it could occur, so customer believes its inevitable. For this reason, freight charges are asked to include foreign customs, which is probably not necessary, but eventualy its increasing the freight charges. Under normal circumstances, if the trade agreement between importer and exporter is not done “including the customs costs”, freight charges are excluding customs as standart. Foreign customs is done within vehicle route by transport agent, and charged to importer company. For example on export loadings, transport agent arranges the import customs at arrival customs, and charge the buyer. If the exporter wants to cover buyer’s import customs then YDG customs fee occurs. A different process is that, if buyer wants the customs by another customs point or by different agent, then T1 would be necessary. T1 would be named as foreign customs cost in daily operations, however process details are explained in our T1 blog.
