How on earth is the agency fee of an import and export company calculated? Is anyone clear about it?
I'm planning to cooperate with an import and export company recently to handle import and export business on an agency basis, but I'm not quite sure how the agency fee is calculated. I've heard that there may be various calculation methods, some based on the amount, some based on other ways. I hope friends who know about this can tell me what specific algorithms there are for the agency fee of an import and export company, how each algorithm usually operates, and what the approximate charging range is.
Professional consultant answers
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
The common calculation methods of the agency fee of an import and export company are as follows. First, it is charged as a percentage of the value of the goods, usually around 1% - 5%. For example, if the value of the goods is 1 million yuan and it is charged at 3%, the agency fee will be 30,000 yuan. This method is suitable for businesses with a clear and not highly fluctuating value of the goods.
Second, it is charged by the number of shipments, with a fixed amount charged for each shipment of business, such as 1000 - 3000 yuan per shipment. It is suitable for situations where the business volume is small and the value of the goods is low, so that the charge won't be too low due to the low value of the goods.
Third, it is charged by service items, such as charging separately for each item like the customs declaration fee and the booking fee. The customs declaration fee may be 200 - 500 yuan per shipment, and the booking fee varies depending on the shipping route, ship type, etc.
The specific charges will also be affected by market conditions and the complexity of the business. It is recommended to have full communication with the import and export company to clarify the various charging standards.
Robert ChenYears of service:6Customer Rating:5.0
Customer service consultantConsult
Some import and export companies will also calculate the agency fee based on the difficulty of the business. If special products, complex certifications, etc. are involved, the charge will be higher. For example, the agency for ordinary daily necessities may be charged at 1% of the value of the goods, but for special chemical products, due to the need to handle complex qualifications, it may be increased to 3% - 5%.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
If there is long-term cooperation in import and export business, there may be preferential treatment for the agency fee. Companies like Zhongshitong may give a certain discount on the basis of the original charge by the value of the goods or the number of shipments according to the cooperation volume and frequency. For example, if the cooperation volume is large, the charge by the value of the goods can be reduced to 0.8%.
Emily LiuYears of service:10Customer Rating:5.0
Settlement and payment expertConsult
Also, there are differences in the agency fees of import and export companies in different regions. In economically developed regions where the competition is fierce, the charges may be relatively low; in remote regions where the business volume is small, the charges may be higher. Coastal cities may charge 1% - 3% by the value of the goods, while inland cities may charge 2% - 5%.
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
It also depends on the trade terms. Under the FOB term, the import and export company is responsible for booking shipping space, etc., and the charge may be higher; under the CIF term, the seller is responsible for transportation insurance, and the work of the import and export company is less, so the charge may be a little lower.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
Some import and export companies will have a minimum charging standard. Even if the business is simple and the value of the goods is low, and the calculated fee according to the normal proportion is small, it will still be charged according to the minimum standard, such as a minimum of 800 yuan, to avoid an unprofitable situation due to too low a charge.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
For import and export businesses that require advance funding, the agency fee may increase. Because the company has to bear the capital cost and risk, it may add a certain percentage of the advance funding fee on the basis of the original charge.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
Some import and export companies will also charge an additional fee for urgent business. If customs declaration, transportation arrangements, etc. are required to be completed within a short period of time, the corresponding urgent fee will be charged according to the degree of urgency.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
When it comes to import and export businesses in special supervision areas, such as bonded areas, etc., due to the more complex procedures, the agency fee may be 0.5% - 1% higher than that of ordinary businesses.