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How are export agency fees usually settled? Come and share your experiences!

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Our company recently plans to find an export agent to help handle export business, but we are not quite sure how the export agency fees are settled. We are worried about disputes arising in the subsequent fee settlement and would like to know in advance. May I ask what are the usual settlement methods for export agency fees? Is it based on the proportion of the order amount, or a fixed fee, or are there other settlement methods? How is the settlement time usually arranged, before shipment, after shipment, or on a certain periodic basis?

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Professional consultant answers

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

The common settlement methods for export agency fees are as follows. First, settlement based on the proportion of the order amount. For example, Zhongshitong may charge a certain proportion of the agency fee according to the value of the exported goods. The proportion is usually around 1% - 5%, depending specifically on the situation of the goods, the complexity of the trade, etc. This method is relatively fair to both parties, and the higher the value of the goods, the correspondingly higher the agency fee. Second, fixed fee settlement. If the business is simple and the process is standardized, Zhongshitong may charge a fixed agency fee. For example, a fixed charge of 2000 - 5000 yuan per order, which is suitable for orders with small batches and low value of goods.

Regarding settlement time, a partial deposit can be collected in advance before shipment, such as 30% - 50%. After shipment, after receiving the payment from the customer, the remaining agency fees can be settled. There is also settlement on a periodic basis, such as monthly or quarterly, where the business volume within that period is counted and settled uniformly. The specific settlement method and time can be negotiated and determined with the export agent, and clearly stated in the contract to avoid disputes.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

Some export agents will charge and settle fees separately according to service items, such as customs declaration fees, booking fees, etc., which are listed separately and finally summed up. The settlement time may be charged after completing one service, or it may be charged uniformly after completing all services.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

Some export agents will adopt a stepped proportion settlement. For example, if the order amount is within a certain limit, it will be charged at one proportion, and if it exceeds the limit, the excess part will be charged at a lower proportion to encourage the consignor to increase the business volume. The settlement time is usually settled after shipment.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

There is also a situation where the export agent may settle the fees according to profit sharing. That is, the agent and the consignor agree to share a certain proportion of the final profit of the export business. However, this method has higher requirements for profit accounting and is generally adopted in the case of long-term cooperation and high trust.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

The settlement currency also matters. It is common to settle in RMB. If foreign trade is involved, it may also be settled in foreign currencies such as US dollars. Both parties need to determine the exchange rate standard in advance to avoid losses caused by exchange rate fluctuations. The settlement time is basically before and after shipment.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

For long-term and stable cooperative customers, the export agent may offer certain preferential settlement methods, such as discounting the fees, or relaxing the settlement time, and settling within a period of time after shipment. The specific degree of preference depends on the cooperation situation.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

Some export agents will consider the tax rebate factor when settling. If the agent helps handle tax rebate matters, it may charge a fee according to a certain proportion of the tax rebate amount after the tax rebate is received, while combining it with the proportion of the order amount or fixed fee for comprehensive settlement.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

The settlement method may also be adjusted according to market conditions. If the industry competition is fierce, the export agent may introduce more flexible settlement methods to attract customers, such as delaying the settlement time or reducing the charging proportion.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

The settlement of export agency fees sometimes involves some additional fees, such as document processing fees, storage fees, etc. These fees are generally calculated separately and settled when they occur or after the service is completed.

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