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Who should bear the freight forwarding export agency fees?

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Our company recently has a batch of goods to export and plans to hire a freight forwarder as an export agent. However, we are confused about the fees—who should pay the freight forwarding export agency fees? Is it us, the shipper, or the overseas consignee? Are there any industry practices or regulations regarding this? Additionally, if additional services are involved, such as expedited customs clearance or special packaging, how should these fees be allocated? We hope professionals can help clarify this.

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Professional consultant answers

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

Senior customs declaration consultantConsult

There is no fixed standard for who should pay the freight forwarding export agency fees; it is usually determined by the trade contract terms. Under common trade terms like FOB (Free On Board), the shipper is responsible for delivering the goods to the designated port of shipment, so the freight forwarding export agency fees are generally borne by the shipper, as they arrange the transportation. Under CIF (Cost, Insurance, and Freight) and CFR (Cost and Freight) terms, although the seller arranges transportation, the costs are theoretically included in the price and passed on to the buyer. For additional service fees, if the shipper requests expedited customs clearance or special packaging, these fees are typically borne by the shipper. If these fees arise from the consignee's special requirements, they should be paid by the consignee. In short, it is best to clearly define responsibilities and cost-sharing in the trade contract.

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

Supply chain optimization expertConsult

Generally, if there is no special agreement, the shipper usually bears the basic freight forwarding export agency fees, such as booking and document processing. If the consignee appoints the freight forwarder, the consignee may also bear part of the fees, depending on negotiations.

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

Business coordination consultantConsult

In practice, if both parties have a stable partnership, they may negotiate to share the freight forwarding export agency fees. For example, in long-term cooperation, the shipper may cover basic fees, while the consignee bears additional fees arising from market fluctuations.

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

Cost control consultantConsult

If the trade contract uses EXW (Ex Works) terms, the freight forwarding export agency fees from the factory to the port are likely borne by the buyer, as the seller's responsibility is minimal in this case.

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

Document expertConsult

The allocation of freight forwarding export agency fees may also be influenced by market conditions. When the transportation market is tight and freight forwarder resources are scarce, the party more urgently needing the service may be more inclined to bear the fees.

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

International logistics consultantConsult

If the fees involve destination port freight forwarding services, such as bill of lading exchange fees, they are usually borne by the consignee, as these are costs related to receiving the goods at the destination port.

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

Settlement and payment expertConsult

In some cases, the freight forwarding export agency fees may be shared proportionally, such as 70% by the shipper and 30% by the consignee, depending on negotiation leverage and willingness to cooperate.

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

Foreign trade tax refund consultantConsult

If the goods are high-value and the consignee has strict requirements for transportation timelines, the likelihood of the consignee bearing part of the freight forwarding export agency fees increases.

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

Market development consultantConsult

In cross-border e-commerce small-package exports, many sellers absorb the freight forwarding export agency fees into the product cost to attract customers, offering free shipping or similar promotions to buyers.

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