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Who should bear the warehouse entry fees in export agency business?

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I've been doing export agency business recently and got confused about who should bear the warehouse entry fees. The goods need to enter the warehouse and warehouse entry fees have been incurred. There was no clear mention in the previous contract between me and my partner about who should bear the warehouse entry fees. Now I want to know, in this situation, who on earth should bear the warehouse entry fees in export agency business? Are there any industry practices or relevant legal provisions?

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Professional consultant answers

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

Compliance and risk managerConsult

In the export agency business, if the contract doesn't clearly state who should bear the warehouse entry fees, generally, there are the following common situations. Firstly, if the seller is responsible for arranging transportation and delivering the goods to the designated warehouse, then usually the seller bears the warehouse entry fees. This is because the seller has the obligation to deliver the goods intact to the designated location. Secondly, if the buyer designates a freight forwarder or other logistics arrangements and the goods are transported to the buyer's designated warehouse, at this time, it's more likely that the buyer will bear the warehouse entry fees. In terms of industry practices, it's more reasonable for whoever takes the lead in getting the goods into the warehouse to bear the warehouse entry fees. But it still needs to be judged according to the actual situation of the transaction. For example, if the seller includes the price of warehouse delivery in the price terms, then it's highly likely that the seller will bear the warehouse entry fees. Meanwhile, although there are no specific legal provisions specifically targeting warehouse entry fees, the bearer of the warehouse entry fees can be determined according to relevant provisions in the Civil Code regarding sales contracts, agency contracts, etc., combined with the agreements between both parties and trading practices.

In conclusion, it is recommended that when encountering problems, both parties have friendly consultations to clarify responsibilities and avoid subsequent disputes.

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

Foreign trade tax refund consultantConsult

Generally speaking, if it's under FOB terms, usually the seller bears the warehouse entry fees because the seller is responsible for delivering the goods onto the ship designated by the buyer, and entering the warehouse is one of the links.

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

Customer service consultantConsult

If the goods are in LCL (Less than Container Load), the freight forwarder may require the shipper to bear the warehouse entry fees because the freight forwarder is responsible for the LCL operation and the shipper has the responsibility to cooperate with the entry into the warehouse.

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

Senior foreign trade managerConsult

If the export agency and the customer have agreed in advance to conclude the deal on the basis of Cost and Freight (CFR), then it's more likely that the export agency will bear the warehouse entry fees because it needs to be responsible for transporting the goods to the designated location at the destination port.

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

Settlement and payment expertConsult

In actual business, there are also situations where both parties share the warehouse entry fees, especially when the warehouse entry fees are high and both parties jointly negotiate to share in order to maintain the cooperative relationship.

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

Business coordination consultantConsult

If the buyer requests special warehouse entry services, the additional fees incurred may be borne by the buyer, and the ordinary warehouse entry fees are handled according to the usual practice.

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

Market development consultantConsult

In some cases, the charging standards and relevant instructions of the warehouse side can also be used as reference bases for judging who should bear the warehouse entry fees.

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

Cost control consultantConsult

If the export agency enters the warehouse according to the specific route or method required by the customer, the resulting warehouse entry fees can be communicated and negotiated with the customer about the bearer.

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

Supply chain optimization expertConsult

If the warehouse entry fees increase due to special factors such as force majeure, both parties can negotiate to bear according to the principle of fairness.

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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