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Who should appoint the agent for export FOB?

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I'm a newbie in a foreign trade company. Recently, I encountered a confusion when dealing with an export business. Under the FOB terms, I'm not quite sure who should appoint the freight forwarder. Is it us, the exporter, or the foreign importer? Are there any industry practices or special points to note? I hope seniors can tell me about it so that I won't be confused in future business.

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Professional consultant answers

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

Cost control consultantConsult

Under the export FOB terms, it's usually the importer who appoints the freight forwarder. This is because FOB, i.e., Free on Board (named port of shipment), means that the importer is responsible for the transportation and related costs after the goods cross the ship's rail. So appointing the freight forwarder makes it easier for them to control the transportation link and keep track of the goods' status.

However, the exporter should also note that although the freight forwarder is appointed by the importer, they still need to examine the freight forwarder. Some unethical freight forwarders may collude with the importer, bringing risks to the exporter in aspects such as releasing goods without a bill of lading. Therefore, the exporter should pay attention to the qualifications and reputation of the freight forwarder, strive for favorable terms when signing the contract, for example, clarify the obligation of the freight forwarder to release goods against the original bill of lading. In short, although it's a common practice for the importer to appoint the agent, the exporter can't afford to be careless and should do a good job in risk prevention.

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

Foreign trade tax refund consultantConsult

Generally, it's the importer who appoints the agent. This way, they can better plan the transportation, such as arranging a suitable shipping schedule and coordinating the customs clearance at the port of destination. The exporter just needs to cooperate with the freight forwarder and provide relevant information.

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

Supply chain optimization expertConsult

Indeed, it's mostly the importer who appoints the freight forwarder. But if the exporter has a long - term cooperative and well - serving freight forwarder, they can negotiate with the importer to appoint it themselves, though the probability of success may not be high.

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

Settlement and payment expertConsult

If the importer appoints the agent, the exporter can require the freight forwarder to have reliable local branches, which is convenient for communication and handling of unexpected problems.

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

Customer service consultantConsult

That's right. When the importer appoints the agent, the exporter should ensure that the freight forwarder timely and accurately feedbacks the goods transportation information to themselves to avoid poor communication.

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

Market development consultantConsult

According to the practice, the importer appoints the agent. The exporter should confirm the loading details, such as time and place, with the freight forwarder before loading to prevent delaying the shipping schedule.

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

International logistics consultantConsult

When the importer appoints the freight forwarder, the exporter needs to pay attention to the freight forwarder's fees, avoid unreasonable charges, and communicate with the importer in advance about the issue of cost - bearing.

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

Document expertConsult

Usually, the importer appoints the agent. The exporter should ensure that the goods are prepared on time and complete a series of operations such as delivery as required by the freight forwarder.

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

Senior customs declaration consultantConsult

Generally, the importer appoints. The exporter can check the past business evaluations of the freight forwarder. If the reputation is poor, they can suggest the importer to change it.

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

Compliance and risk managerConsult

When the importer appoints the agent, the exporter should not forget to timely provide accurate packing lists, invoices and other documents to the freight forwarder to ensure the smooth progress of the process.

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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