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Who should bear the agency export fees? Come and discuss together!

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I'm planning to find an agency company to do export business recently. I want to know who usually bears the agency export fees? Is it the entrusting party or the agency? What specific aspects do these fees include? I heard that for different business models, the fee-bearing party may be different. Is there any professional who can explain it in detail? So that I can have a clear idea and avoid disputes in future cooperation.

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Professional consultant answers

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

Supply chain optimization expertConsult

The fee-bearing party of agency export fees is usually negotiated and determined by the entrusting party and the agency in the agency export agreement. Generally, most of the fees are borne by the entrusting party. This is because the entrusting party is the main beneficiary of the export business. Common fees include agency fees, which are the remuneration charged by the agency company for providing services, usually charged according to a certain proportion of the export amount; customs declaration fees, which are used for handling the customs declaration procedures of goods; transportation fees, including domestic transportation to the port and international transportation fees; and inspection and quarantine fees, etc. However, if the agency has additional responsibilities or service agreements during the operation process, the fee-bearing may be adjusted. For example, in some cases, if the agency promises to advance part of the fees, it may be negotiated that the agency pays first and the entrusting party repays later. But in any case, it is crucial to clarify the fee-bearing party and specific items when signing the agreement.

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

Business coordination consultantConsult

Usually, the agency fees are definitely borne by the entrusting party. After all, the agency company makes a profit from this. Other fees such as transportation and customs declaration, if not negotiated in advance, are borne by the entrusting party by default because the goods belong to the entrusting party.

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

Foreign trade tax refund consultantConsult

In some cases, in order to attract business, the agency may bear a small part of the miscellaneous fees, but the major part is still borne by the entrusting party, such as international freight.

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

Compliance and risk managerConsult

If the entrusting party and the agency have a long-term cooperative relationship, they may negotiate to share some of the fees jointly to promote closer cooperation.

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

Document expertConsult

In the FOB model, the entrusting party generally bears the fees before the goods cross the ship's rail, including domestic transportation, customs declaration, etc.; the agency is responsible for the agency fees.

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

Settlement and payment expertConsult

The fee-bearing depends on the negotiation status of both parties. If the entrusting party has a large business volume, it may ask the agency to bear more fees to strive for preferential treatment.

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

Cost control consultantConsult

Generally, customs declaration and inspection fees are borne by the entrusting party, unless the agency has a packaged service and includes these fees in the agency fees.

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

Customer service consultantConsult

If there are special requirements for the goods during transportation, the additional fees arising therefrom depend on the agreement between both parties. The possibility that the party who proposes bears the fees is greater.

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

Market development consultantConsult

For small fees such as document processing fees, sometimes the agency will bear them by itself in order to maintain a good cooperation with the entrusting party.

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