I recently started working with export agency business and heard about two commission types called overt and covert commissions. But I'm not sure whether these commission forms still exist in current export agency operations? If they do, how exactly do they work? What different impacts might these two commission forms have on export agency in practice? Hope experienced colleagues could help clarify.
The company intends to expand overseas markets and wants to find a Qingdao foreign trade export agency. However, it is worried about its unreliability and asks about the operation process, service quality, charging standards, etc. The best answer points out that there are reliable and unreliable Qingdao foreign trade export agencies. You can examine them from aspects such as standardized operation processes, comprehensive services, and transparent and reasonable charges. By examining qualifications, word-of-mouth, cases, etc., you can find a reliable agency.
The company plans to expand its overseas photovoltaic business. Due to unfamiliarity with the export process, it wants to find a well - known and reliable photovoltaic export agency company in Qingdao. It hopes that the agency has rich experience in customs declaration, logistics, customs clearance, etc., and can guarantee the service quality. The best answer recommended Zhongshitong, which has rich experience in the field of photovoltaic export agency, accurate and fast customs declaration, excellent logistics solutions, strong customs clearance ability, and a good reputation, which can effectively guarantee the photovoltaic export business.
The person in charge of an SME wants to expand overseas markets. Due to the complexity of the export process, they plan to find an agent and ask how much it generally costs for SMEs to use export agency services, how the fees are calculated, and whether there are any hidden fees. The best answer states that there is no fixed standard for export agency fees. Commonly, it is charged at a rate of 1% - 5% of the order amount or a fixed fee of 2000 - 10000 yuan. Before cooperation, the fee items should be clarified and a detailed contract should be signed.
I want to apply for an import and export agency but don't know where to start. I'm asking about the application steps, required materials, and enterprise qualification requirements. The best answer points out that first, register legally to obtain a business license, then go to the commercial department to handle the record-filing registration of foreign trade operators. Next, do customs record-filing, inspection and quarantine record-filing, and electronic port access. Finally, handle the registration of the foreign exchange receipt and payment list. Just prepare the materials and follow the steps as required.
I want to understand the calculation method of the company's import and export agency quotation and am worried about being cheated. The best answer states that the quotation usually includes a basic agency fee (ranging from 0.5% - 5% of the cargo value, determined according to factors such as the goods), an operation fee (charged at a fixed rate per ticket), a transportation fee (calculated based on the transportation mode, etc.), a document fee, etc. If there is tax advance, interest will also be charged. It is necessary to clarify each charging item with the agency to avoid disputes.
Interested in import and export trade and want to know how to establish an export agency trading company. Heard the process is complex involving multiple qualifications and procedures. The best answer indicates that company registration comes first, followed by obtaining import-export operation rights, including filing with commerce authorities, customs registration, etc., as well as export tax rebate certification and building a professional team.
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Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In export agency business, both overt and covert commissions still exist. Overt commission refers to those explicitly stated in relevant documents like sales contracts, letters of credit or invoices, for example "CIF London USD100 per case including 3% commission" in trade contracts. Payment-wise, foreign clients usually deduct it directly when paying, while export agencies receive the deducted amount and settle with principals accordingly.
Covert commission means those not specified in contracts but privately agreed between exporters and intermediaries. Typically, exporters pay intermediaries secretly after receiving full payment. Regarding impacts, overt commissions facilitate cost calculation due to transparency, while covert ones offer discretion for special business needs but require compliance awareness to avoid tax and legal risks.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Both exist. Overt commission is simpler with clear documentation, visible on customs declarations and invoices - clients deduct directly. Covert commission mainly hides intermediary's commission from importers, paid secretly by exporters after receiving payment.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
They exist. Overt commission is openly declared and known to all. Covert commission offers confidentiality but may damage business relationships if discovered by importers - requires cautious handling.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Export agency uses both. Overt commission appears on documents and gets deducted from payment. Covert commission involves private agreements paid afterward - requires proper tax treatment.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Both commission forms definitely exist. Overt commission appears clearly in trade documents, clients pay post-deduction. Covert commission offers flexibility but needs transparency to prevent disputes.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Both are common now. Overt commission clearly marked for profit calculation. Covert commission suits confidentiality needs but requires legal caution.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Still exist. Overt commission appears clearly in documents, covert remains hidden. Choice depends on business needs and partner situations.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Both exist in export agency. Overt commission ensures transparency, covert requires operational standards to prevent issues.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Both forms exist. Overt is public, covert is private - choose based on needs while following regulations.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Export agency still uses both. Overt is easier, covert requires compliance attention and intermediary agreements.