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How exactly should the agency import trade volume be defined? Come and help me answer this!

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I've just started getting involved in agency import business recently and I'm not very clear about the definition of the agency import trade volume. For instance, I'm helping a client import a batch of goods, which involves the value of the goods themselves, transportation costs, insurance premiums, and the agency fee I charge. Do all these count in the agency import trade volume? I hope friends who know the ropes can give me a detailed explanation on how to accurately define the agency import trade volume.

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Professional consultant answers

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

Market development consultantConsult

The agency import trade volume is usually mainly defined based on the CIF price (Cost, Insurance and Freight) of the goods. The value of the goods itself is the core part of the trade volume. The transportation costs and insurance premiums, since they are the necessary expenses for the goods to reach the destination, are also included in the CIF price and fall within the scope of the agency import trade volume. As for the agency fee, it generally does not count in the agency import trade volume and is the remuneration received by the agent for providing services. For example, if a piece of equipment is imported with a purchase price of 1 million yuan, ocean freight of 50,000 yuan, and insurance premium of 10,000 yuan, the CIF price is 1.06 million yuan, and this 1.06 million yuan is the agency import trade volume, while the 100,000 yuan agency fee charged by the agent is not included.

However, in actual business, there may be differences due to trade contract agreements, statistical scopes, etc. For some special expenses such as handling fees, if the contract stipulates that they are to be included in the trade volume, they need to be counted. Therefore, it is necessary to accurately define it in combination with specific contract terms.

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

Foreign trade tax refund consultantConsult

To put it simply, the landed price of the goods is basically equivalent to the agency import trade volume. The value of the goods, freight, and insurance premiums mentioned above all count. The agency fee is an additional service fee and is not included in the trade volume. However, if there are special tax agreements included in the trade volume, they need to be added.

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

Business coordination consultantConsult

The agency import trade volume is generally based on the duty-paid price of the goods arriving at the port, that is, the CIF price. In actual operation, pay attention to the division of expenses in the contract. If certain miscellaneous fees are clearly included in the trade volume, these miscellaneous fees need to be counted.

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

Compliance and risk managerConsult

It mainly depends on the transaction terms. Under the commonly used CIF terms, the trade volume is the sum of the cost, insurance, and freight. If the FOB terms are adopted, the trade volume is mainly the value of the goods, and the freight and insurance premiums are handled according to the contract agreement and may not be included in the trade volume.

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

Settlement and payment expertConsult

To define the agency import trade volume, first determine the price of the goods themselves, and then see if the transportation, insurance, and other expenses are to be included within the scope of the contract agreement. The agency fee is not part of the trade volume as it is a service remuneration.

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

Document expertConsult

Under normal circumstances, the agency import trade volume is defined according to the CIF price of the goods. If there are special contract agreements, for example, some additional expenses are included, then these additional expenses should also be counted.

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

Cost control consultantConsult

The key to defining the agency import trade volume lies in the contract provisions. Usually, the CIF price is the main part. If there are additional expenses clearly to be included in the trade volume, such as special packaging fees, they need to be calculated together.

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

International logistics consultantConsult

The agency import trade volume is defined based on the CIF price. The freight, insurance premium, and the value of the goods all count. But if the contract stipulates otherwise, like some handling fees are not included in the trade volume, then follow the contract.

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

Supply chain optimization expertConsult

Usually, the CIF price is used as the agency import trade volume. But if there are special agreements, such as some customs clearance handling fees are to be included in the trade volume, then this part of the expenses needs to be added.

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

Senior foreign trade managerConsult

The agency import trade volume is generally the CIF amount of the goods. However, if the contract has special instructions on the composition of the trade volume, the calculation needs to be adjusted according to the contract.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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