Who should bear the FOB export agency fee?
Solved#Other issues#
I've recently been engaged in export business, using the FOB trade term. I'm a bit confused about the cost. Who on earth should bear the FOB export agency fee? I noticed it wasn't clearly stated in the contract. When I asked the cooperative party, they were vague. I want to know who generally bears this cost, the seller or the buyer, and whether there are any relevant industry practices or regulations. I hope friends who know the ropes can give me some insights.
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Under the FOB trade term, theoretically, the seller is responsible for all costs and risks before the goods are loaded onto the ship. The export agency fee is usually the cost incurred by the seller when entrusting an agency company to handle relevant matters in order to complete the export business. Therefore, it is generally borne by the seller.
However, in trade practice, the cost bearing can sometimes be determined through negotiation. If the seller has taken into account cost factors such as the export agency fee when quoting and appropriately increased the price of the goods, then to some extent, the buyer indirectly bears this part of the cost.
If the contract does not clearly stipulate, both parties should communicate and negotiate in a timely manner to avoid subsequent disputes. It is recommended to specify in detail the attribution of various costs when formulating contract terms to protect the rights and interests of both parties.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally speaking, it is the seller who bears it, because under the FOB term, the seller is responsible for procedures such as export declaration of the goods, and the export agency fee is often included in the costs generated by these operations. But if there are special agreements between the buyer and the seller, then it shall be subject to the agreement.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Normally, it is the seller who bears it. After all, most of the operations related to export agency are led by the seller. However, if the market situation is favorable to the buyer and the buyer strongly demands not to bear any additional costs, the seller may bear the agency fee in order to conclude the transaction.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In most cases, the seller is responsible, because under the FOB condition, the seller is responsible for matters before the goods are delivered to the ship, and most of the export agency services are in this stage. But if the relationship between the buyer and the seller is good, or considering long - term cooperation, it may also be negotiated for the buyer to share.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
As a rule, the export agency fee is borne by the seller. But if the seller is at a disadvantage in the negotiation and the buyer insists not to bear it, the seller can only bear this cost in order to ship the goods.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Usually, the seller bears it, because the seller has to handle a series of processes for the export of goods, and the export agency fee is one of them. If the contract doesn't specify, the buyer and the seller can decide through friendly negotiation.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Generally, it is the seller who bears the burden. After all, the seller finds an agent to handle export affairs, and the costs incurred are naturally paid by the seller first. If both parties reach an agreement and the buyer is willing to share, that's also fine.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Under FOB, usually the seller is responsible for the export agency fee. But if the buyer, for reasons such as ensuring the timely delivery of goods, takes the initiative to bear part or all of the agency fee, it is also feasible.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally, the seller bears this cost, because the seller needs to entrust an agent to handle export - related procedures. If there are special business arrangements between the two parties, the way of cost bearing can also be changed.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Normally, the seller bears the export agency fee, because FOB stipulates that the seller is responsible for matters before the goods are loaded onto the ship, and the agency services are mostly within this scope. But transactions are flexible, and both parties can discuss the way of bearing.