How exactly is agency export calculated? Does anyone know clearly?
Our company plans to hire an agency to help with exporting products, but we’re not entirely sure how agency export fees are calculated. Are they charged as a percentage of the export amount, or are there other calculation methods? Besides the agency fee, what other costs might be involved? We’d appreciate it if someone with knowledge could explain in detail so we can have a clear understanding and avoid being taken advantage of.
Professional consultant answers
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
The calculation of agency export fees is usually quite complex. First, the agency fee is commonly charged as a percentage of the export amount, such as 1%-5%, depending on the product, trade scale, etc. For example, for exporting $1 million worth of goods with a 3% agency fee, the fee would be $30,000.
Second, there may be additional miscellaneous fees. For instance, customs declaration fees typically range from 300 - 800 RMB per shipment, varying by port and complexity of the declaration. There are also freight forwarding handling fees, usually around 200 - 500 RMB per shipment. Additionally, if tax advances are required, tax advance interest will be charged, calculated based on the bank’s loan interest rate plus a certain markup.
When calculating costs, be sure to clarify all fee details with the agency to ensure smooth cooperation.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
In addition to what was mentioned above, some agencies may charge document fees, typically 200 - 500 RMB, for preparing various export documents.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
If the goods require inspection, inspection fees should also be considered, usually a few thousandths of the goods’ value.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Don’t forget about port handling fees during transportation, such as THC fees, which are generally a few hundred RMB for small containers and higher for large ones.
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
There may also be fees for certificates of origin. A standard certificate of origin costs around 100 - 200 RMB, while special ones like FORM A are more expensive.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
Some agencies charge handling fees, which could be a few hundred RMB per shipment, regardless of the amount.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
If the goods require warehousing, storage fees will apply, calculated based on storage duration and volume.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
Bank fees should also be considered, such as foreign exchange collection fees, charged as a percentage of the collected amount.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
Sometimes, amendment fees may apply if changes are needed to documents like customs declarations, for which the agency will charge a fee.