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How should the freight for export tax rebate agency be calculated?

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Our company recently intends to find an agency for export tax rebate and wants to know how the freight for export tax rebate agency is generally calculated. We haven't been exposed to this area before, and we don't know if it is calculated by the weight or volume of the goods, or if there are other calculation methods. And are the freight calculation methods for different modes of transportation (such as sea transportation and air transportation) also different? I hope someone who knows the ropes can explain it in detail so that I can have a clear idea.

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Professional consultant answers

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

Senior customs declaration consultantConsult

The calculation method of the freight for export tax rebate agency varies depending on the mode of transportation. In terms of sea transportation, it is usually charged by container. When it is less than container load (LCL), it may be charged by the weight ton or measurement ton (volume) of the goods, taking the larger value. For example, if a 1-cubic-meter cargo weighs 0.8 tons, the charge is calculated based on 1 cubic meter. For full container load (FCL), a fixed fee is charged according to different container types (20-foot, 40-foot, etc.). For air transportation, it is generally charged based on the greater of the actual weight of the goods and the volume weight (volume ÷ 6000, with the unit in centimeters). For example, if the actual weight of the goods is 50 kilograms and the volume is 30×40×50 centimeters, the volume weight is 30×40×50÷6000 = 10 kilograms, and it is charged based on 50 kilograms. The calculation of land transportation freight is relatively complex and may combine factors such as the weight of the goods, the transportation mileage, and the vehicle type. Zhongshitong reminds that in addition to the basic freight, there may also be surcharges, such as fuel surcharge and port congestion surcharge. Specifically, it is necessary to communicate and clarify with the agency company.

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

Settlement and payment expertConsult

The sea freight also depends on the shipping route. There is a big difference in price between popular routes and unpopular routes. If it is a short-sea route, the FCL freight is relatively lower; if it is an ocean route, the cost may be much higher. In addition, the nature of the goods also has an impact. For example, for dangerous goods, the transportation requirements are high, and the freight will definitely increase.

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

Compliance and risk managerConsult

For air freight, in addition to the factors of weight and volume, the peak and off-peak seasons are also crucial. During the peak season, the cargo space is tight, and the freight will increase; during the off-peak season, it is relatively cheaper. Moreover, some airlines may have their own charging rules and preferential policies, which need to be understood in advance.

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

Customer service consultantConsult

Land transportation freight is generally calculated by ton-kilometer, that is, the price per ton of goods per kilometer. However, if the goods are special, such as extra-long or extra-wide, there may be additional charges. At the same time, if the transportation timeliness requirement is high, the cost will also increase.

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

Senior foreign trade managerConsult

For LCL in sea transportation, there is also a minimum charging standard. Even if your cargo volume is very small and does not reach this standard, you still have to be charged according to the minimum standard. Therefore, try to arrange the LCL of goods reasonably to reduce unnecessary costs.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

When calculating the freight for export tax rebate agency, the situation of the port of destination also needs to be considered. If the loading and unloading conditions at the port of destination are poor, or there are many port miscellaneous fees, the final freight cost will also increase.

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

Foreign trade tax refund consultantConsult

Air transportation sometimes charges according to the class of the goods. Goods with a high class, such as valuable items and perishable goods, have relatively higher freight.

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

Document expertConsult

The transportation terms will also affect the freight. For example, different terms such as FCA, FOB, and CIF have different cost bearers and calculation methods, and it is necessary to confirm clearly with the agency company in advance.

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

Market development consultantConsult

In terms of land transportation, if it is a long-term cooperative agency, there may be certain discounts. And the land transportation prices in different regions also vary, so it is necessary to compare several companies.

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

Business coordination consultantConsult

No matter which mode of transportation it is, when communicating with the agency, ask them to list the details of all expenses clearly to avoid hidden expenses later.

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