In the business of export tax rebate by agent, the determination of the party bearing the freight costs mainly depends on the specific provisions of the entrusting agency agreement. If the agreement clearly stipulates that the freight costs are to be borne by a certain party, then it shall be implemented according to the agreement.
From the perspective of industry practices, if it is the entrusting party that is responsible for the transportation arrangements of the goods, such as designating freight forwarders, etc., usually the entrusting party bears the freight costs. Because the entrusting party has more control and dominance over the transportation link.
There are also differences under different trade terms. For example, under the FOB (Free on Board) term, usually the buyer is responsible for arranging the transportation and bearing the freight costs; while under the CIF (Cost, Insurance and Freight) term, the seller is to bear the freight costs of transporting the goods to the destination port. Here, if the seller is exporting through an agent and there is no special agreement, generally the entrusting party bears the freight costs, because the entrusting party is the seller in the real sense. In short, first look at the agreement, and then refer to the trade terms and practices to determine the bearer of the freight costs.
Professional consultant answers
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
In the business of export tax rebate by agent, the determination of the party bearing the freight costs mainly depends on the specific provisions of the entrusting agency agreement. If the agreement clearly stipulates that the freight costs are to be borne by a certain party, then it shall be implemented according to the agreement.
From the perspective of industry practices, if it is the entrusting party that is responsible for the transportation arrangements of the goods, such as designating freight forwarders, etc., usually the entrusting party bears the freight costs. Because the entrusting party has more control and dominance over the transportation link.
There are also differences under different trade terms. For example, under the FOB (Free on Board) term, usually the buyer is responsible for arranging the transportation and bearing the freight costs; while under the CIF (Cost, Insurance and Freight) term, the seller is to bear the freight costs of transporting the goods to the destination port. Here, if the seller is exporting through an agent and there is no special agreement, generally the entrusting party bears the freight costs, because the entrusting party is the seller in the real sense. In short, first look at the agreement, and then refer to the trade terms and practices to determine the bearer of the freight costs.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Generally speaking, if the agency contract does not specify otherwise, whoever arranges the transportation shall bear the freight costs. If the entrusting party contacts the freight forwarder on its own to send the goods, then naturally the entrusting party shall pay the freight costs.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
The trade terms are crucial. For example, under the EXW (Ex Works) term, it is the buyer who is responsible for picking up the goods and subsequent transportation, and the buyer bears the freight costs. So it is necessary to make a judgment in combination with the specific terms.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
It also depends on the service scope of the agent. If the agent is fully responsible for the door-to-door service, then it is very likely that the agent will bear the freight costs, but this will surely be reflected in the price.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
Usually, if the agent is only simply handling the export tax rebate procedures and not involved in transportation-related matters, the freight costs are most likely to be borne by the entrusting party.
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
From the perspective of risk, if the entrusting party wants to control the transportation risk and arranges the transportation by itself, it is more reasonable for it to pay the freight costs by itself.
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
In some cases, both parties can also negotiate to share the freight costs, which can balance the interests of both parties.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
If the agent has a long-term cooperative freight forwarder and can obtain preferential freight costs, it is also feasible for both parties to negotiate that the agent bears the freight costs, which can reduce the overall cost.
Joseph ZhouYears of service:10Customer Rating:5.0
Senior foreign trade managerConsult
In actual operation, it is more beneficial for the overall business to let the party that has more advantages in controlling the transportation cost bear the freight costs.