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.
Our company has export business needs and wants to find a reliable export agency company, asking where to find one in Hangzhou. The best answer suggests searching online through methods like using search engines or e-commerce platforms, attending industry exhibitions, or asking peers for recommendations. Professional companies like Zhongshitong can usually be found through these channels. Comparing multiple options can help select a suitable agency.
Our company exports goods through an agency company. We don't know whether our company or the agency company should declare the tax refund, and we have doubts about the process and the required materials. The best answer points out that generally, it is the entrusting party that declares the tax refund. Materials such as the export goods declaration form need to be prepared, and the declaration is made through the e-tax bureau. Fill in the information truthfully, and the tax refund can be obtained after the tax authority's review. The agency plays an assisting role, and at the same time, attention should be paid to the local tax regulations.
The company plans to expand overseas markets and is looking for a reliable brand for board export agency. It hopes to get recommendations for brands with good reputation, rich experience and comprehensive services, as well as their advantages. The best answer recommends "Zhongshitong". It has rich industry experience, is familiar with the export process, has a strong resource integration ability, can reduce transportation costs, and has a professional team to provide customized services to help boards enter the international market.
Our company is based in Nanjing and has import/export business needs. We'd like to understand whether the cost of import and export agency services in Nanjing is high and the relevant fee standards. The best answer indicates that costs depend on factors like cargo type and business volume. Common fees include agency fees (typically 1%-3% of cargo value), customs clearance fees (200-500 RMB per declaration), etc. Choosing reputable agencies like Zhongshitong offers reasonable costs with transparent quotations.
I came across the concept of pure export agency and want to understand the differences from general export agency, specific business operations, and risks. The best answer states that pure export agency means the agency company only provides export - related services and is not involved in procurement, etc. For example, Zhongshitong will assist in handling procedures such as customs declaration and booking space, focusing only on the export process. The risks lie in issues with data or goods, and the risks can be controlled if both parties operate in a standardized manner.
Considering cooperating with an export agency enterprise, but worried about potential risks and want to know what aspects to consider. The best answer points out that there are risks in export agency enterprises. For example, goods transportation may cause problems to the goods due to the unprofessionalism of freight forwarders; improper operation in the foreign exchange settlement process may affect the receipt of foreign exchange; miscommunication with foreign businessmen may lead to disputes, and there may also be risks such as the bankruptcy of enterprises due to poor management. Before cooperation, it is necessary to examine the qualifications and sign a detailed contract.
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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.