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Who should bear the export agency fees?

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Our company recently plans to find an export agent to handle matters related to goods export, but we are not clear about who should bear the export agency fees. Should our principal bear all the fees, is it possible to negotiate with the agent to share the fees, or in some cases, should the foreign customer bear them? I hope someone can explain in detail which party should bear the export agency fees. Are there any industry practices or rules in this regard?

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Professional consultant answers

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

Document expertConsult

The entity responsible for bearing the export agency fees does not have an absolutely fixed model and needs to be determined according to the specific situation. Generally speaking, it is common for the principal to bear the fees. Because the principal uses the export agency service to smoothly export goods and obtain commercial benefits, it is reasonable for the principal to bear the fees. When the principal bears the fees, it includes various fees generated from the agency business such as agency fees, customs declaration fees, booking fees, etc.

However, there are also cases of negotiated sharing. If the agent is willing to make concessions on some fees in order to obtain the business or jointly explore a new market with the principal, it may negotiate to share some of the fees.

In very few cases, if the foreign customer and the principal reach an agreement and agree to bear part or all of the export agency fees, it is also possible. But this situation is relatively rare. Usually, foreign customers are more concerned about the goods price and delivery time, etc.

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

Foreign trade tax refund consultantConsult

If it is a long - term cooperative principal and agent, the way of cost - bearing may be flexibly determined according to the overall efficiency of the cooperation. The agent may take the initiative to bear part of the fees to maintain the cooperative relationship and improve the cooperation satisfaction.

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

Senior foreign trade managerConsult

Sometimes the export agency fees are also determined according to the trade terms. For example, under the CIF terms, the principal bears relatively more fees because it is responsible for the cost, insurance, and freight of the goods to the port of destination.

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

International logistics consultantConsult

If the principal and the agent are cooperating for the first time, the agent generally requires the principal to bear all the fees. This can reduce the agent's own risks and ensure the timely recovery of service fees.

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

Business coordination consultantConsult

If the added value of the exported goods is relatively high, the principal may be more willing to bear the export agency fees. After all, the profit margin of the goods is large enough to cover this part of the cost.

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

Cost control consultantConsult

When the market competition is fierce, the agent may take the initiative to bear part of the fees in order to win the business and obtain more profits by expanding the business volume.

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

Customer service consultantConsult

If the principal has special requirements during the export process, resulting in an increase in the agent's costs, this part of the additional fees is usually borne by the principal.

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

Senior customs declaration consultantConsult

For some small - batch and low - profit export businesses, the principal and the agent may negotiate to share the fees to ensure the feasibility of the business.

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

Compliance and risk managerConsult

Under some special trade environments, such as policy areas that encourage exports, the local government may subsidize part of the export agency fees to reduce the burden on the principal.

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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