Who should bear the freight for export tax rebate agency?
Solved#Export tax rebate#
Our company has recently engaged an export tax rebate agency to assist with matters related to export tax rebates. Now the issue of freight is involved, and we're not sure whether it should be paid by our side or the agency. I'd like to ask everyone, in general, who is responsible for paying the freight for export tax rebate agency? Are there any industry conventions or relevant regulations to define the attribution of this expense? I hope those who are familiar with this area can help answer this question. Thank you!
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
In the business of export tax rebate agency, there is no absolutely fixed standard for the party bearing the freight. It usually depends on the agency agreement signed by both parties.
If the agreement does not specify, from the common practices in the industry, if the agency is only responsible for handling the relevant procedures of tax rebates and the goods transportation process is arranged by the principal, then the freight is most likely to be borne by the principal. Because the principal is the owner of the goods and the initiator of the transportation demand.
However, if the agency provides one-stop services that cover multiple aspects such as transportation and the freight has not been separately itemized in the quotation, then the agency may bear the freight. But it specifically depends on the result of the negotiation between the two parties at the beginning. It is recommended that you carefully review the terms of the agency agreement or communicate with the agency again to clarify the attribution of the freight liability to avoid subsequent disputes.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, it depends on how the agency contract is signed. If the agency only takes care of the tax rebate and the transportation part is not stated to be included in the services, then the freight is basically paid by the principal.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If the transportation of exported goods is arranged by the freight forwarder and the freight forwarder's fees are borne by the principal, in this case, the export tax rebate agency generally does not bear the freight.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Usually, the principal bears more of the freight. After all, the goods belong to the principal and the transportation is carried out around the goods, while the main focus of the agency is on handling the tax rebate.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the agency includes the transportation cost in the total service price, then it may be the agency that bears the freight. It depends on what was agreed upon during the negotiation of the cooperation.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
It depends on the specific agreement between the agency and the principal. Some agencies, in order to attract customers, include the freight in the services and bear it themselves. If there is no agreement, it will be in accordance with the convention, and the principal will pay.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In most cases, the principal is responsible for the freight. Unless the agency clearly states that transportation is included, it is more reasonable for the principal, as the owner of the goods, to bear the freight.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
First, look at what is written in the contract. If it is not written, then according to common sense, whoever arranges the transportation will bear the freight. Usually, it is the principal who arranges the transportation, so the principal will pay.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the agency only simply assists in handling the tax rebate and all matters related to transportation are handled by the principal, then the freight will naturally be paid by the principal.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Generally speaking, the export tax rebate agency mainly deals with tax rebate matters, and the freight is usually borne by the party responsible for the goods transportation operation, mostly the principal.