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How on earth should agency export be calculated? Looking for guidance from the experts!

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Our company intends to find an agency to export products, but we are not quite sure how agency export is calculated. Is it based on the quantity or amount of products, or are there other calculation methods? What are the costs involved and how should they be accounted for? I hope friends who know about this can explain it in detail so that I can have a clear idea. Otherwise, I'm afraid of being ripped off when the time comes. Thank you all in advance!

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Professional consultant answers

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

Business coordination consultantConsult

The calculation of agency export usually involves multiple aspects. First, there is the agency fee. The common charging method is to charge based on the amount of exported goods at a certain proportion, which generally ranges from 1% to 5%, depending on the pricing strategy of the agency company and the complexity of the business. For example, if the export amount is $1 million and the agency fee proportion is 3%, then the agency fee is $30,000.

Secondly, there may also be some other costs involved, such as customs declaration fees, which are usually around 200 - 500 yuan per shipment, with differences in pricing according to different ports and customs brokers; documentation fees, usually 100 - 300 yuan per shipment. In addition, if special documents such as certificates of origin need to be processed, there will also be corresponding costs. When accounting, it is necessary to clarify the details of each cost item, sign a detailed contract with the agency company, and clearly write down the cost clauses to avoid disputes in the later stage.

At the same time, attention should be paid to the tax refund part. The tax refund for agency export is generally obtained by the consignor, and the agency company assists in handling it. The tax refund amount is calculated based on the tax refund rate of the product and the export amount.

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

Senior foreign trade managerConsult

In addition to what has been mentioned above, some agencies may also charge on a per-order basis. Regardless of the export amount, a fixed fee is charged for each shipment, such as 1,000 - 2,000 yuan. However, this method is relatively rare, and most still charge agency fees based on the amount proportion.

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

Settlement and payment expertConsult

When accounting, don't forget to ask clearly whether there are any hidden costs, such as inspection fees. If the goods are inspected by the customs, it must be clear who will bear this cost. Generally, the inspection fee is settled according to the actual cost incurred, which may range from several hundred to several thousand yuan.

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

Document expertConsult

The insurance premium should also be noted. If the agency helps to buy cargo insurance, the calculation method of this cost should be clearly defined. Generally, it is based on a certain proportion of the value of the goods, such as about one thousandth to three thousandths, depending on the insurance company and the situation of the goods.

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

Cost control consultantConsult

The transportation cost should also be made clear. If the agency is responsible for arranging transportation, the costs of sea transportation and land transportation should be asked in advance. The prices of different transportation methods and routes vary greatly.

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

Foreign trade tax refund consultantConsult

Some agencies may charge an operation fee to cover the labor, office and other costs in the daily operation process. This cost usually also costs several hundred yuan.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

There are also considerations regarding the exchange rate. The exchange rate used for settling agency fees and some other costs should be determined well to avoid additional losses due to exchange rate fluctuations.

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

International logistics consultantConsult

Also, the payment time of the agency fee should be negotiated well. Is it before shipment, after shipment, or after receiving the payment for goods? Different times have different impacts on the cash flow.

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

Market development consultantConsult

For some products that need to be certified, such as CE certification, the certification cost should also be included. The specific cost varies depending on the type of certification and the product.

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