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OI ORIGIN ISPS

Security

Key Information

Who Charges Port authorities
Who Pays Shipper
When Applied Per container or per shipment

What is OI?

The Origin ISPS Security Fee, commonly abbreviated as OI, is a charge levied to cover the costs associated with the International Ship and Port Facility Security (ISPS) Code compliance at the port of origin. Established in response to heightened global security concerns, the ISPS Code aims to enhance the security of ships and port facilities, safeguarding them against potential threats such as terrorism and smuggling. This fee is typically imposed by the port authorities or terminal operators and is payable by the shipper or the freight forwarder acting on behalf of the shipper.

The OI fee becomes applicable when cargo is being prepared for international shipping, and it is calculated based on a per-container or per-shipment basis, depending on the port's specific tariff regulations. It is important to note that while the OI fee is concerned with security measures at the origin port, it is distinct from similar charges that might be applied at the destination port or during transit. These other fees could include destination ISPS fees or security surcharges applied during the shipping process.

In practice, logistics professionals and shippers should ensure the OI fee is accounted for in their overall shipping budget to avoid unexpected costs. It is also crucial to verify the fee amount and payment terms with the port authority or the freight forwarder to ensure compliance with all security protocols. By doing so, shippers can maintain smooth operations and uphold the security standards required in international logistics.

Frequently Asked Questions

What is the Origin ISPS Security Fee (OI)?

The Origin ISPS Security Fee (OI) is a charge that covers the costs associated with complying with the International Ship and Port Facility Security Code at the port of origin. This fee is essential for enhancing security measures against threats like terrorism and smuggling.

Who pays the OI fee, and who charges it?

The OI fee is paid by the shipper and is typically charged by port authorities at the port of origin. This ensures that the necessary security protocols are funded and enforced.

How is the OI fee calculated for shipping?

The OI fee is calculated either per container or per shipment. The exact amount may vary depending on the port's specific security requirements and operational costs.

How can shippers avoid or reduce the OI fee?

Avoiding the OI fee is generally not possible as it is mandated for security compliance. However, shippers can reduce overall shipping costs by consolidating shipments or negotiating rates with port authorities or shipping companies.