The Big Reveal of Agency Export Process Costs: How Much Do You Know?

On the grand stage of international trade, agency export acts like a behind-the-scenes expert, quietly helping numerous businesses expand into overseas markets. Are you curious about the specific processes and costs involved in agency export? Today, let’s lift the veil and explore the intricacies of agency export together.

1. Signing the Agency Agreement

First, the principal (such as Mr. Zhang’s company) and the agent (e.g., Zhongshitong) need to sign a detailed agency export agreement. This agreement must clearly define the rights and obligations of both parties, including the scope of agency, details of the exported goods, payment methods, and more. It serves as the "foundational charter" for all subsequent activities.

2. Preparing Goods and Documents

As the supplier, Mr. Zhang’s company must prepare the goods according to the export contract requirements. At the same time, a series of documents—such as commercial invoices, packing lists, and bills of lading—must be prepared. These documents act as the "passport" for the goods and are indispensable. The agent, Zhongshitong, will also provide necessary guidance and assistance during this process to ensure the accuracy and completeness of the documents.

3. Booking Shipping Space and Customs Clearance

Next, Zhongshitong will arrange shipping space based on the goods and available schedules. Once the space is booked, the customs clearance process begins. This involves submitting various documents to customs for review. Only after approval can the goods be loaded onto the ship for overseas transport. With their professional expertise and resources, the agent can efficiently handle unexpected situations and ensure smooth customs clearance.

4. Shipment and Document Preparation for Payment Settlement

Once the goods are successfully loaded, they embark on their export journey. Meanwhile, the agent prepares the necessary documents for payment settlement and submits them to the bank. After the bank’s approval, the payment is settled to the principal, marking the completion of the main agency export process. However, there are still follow-up tasks, such as tax refunds, which the agent will assist the principal in handling.

1. Agency Fees

This is the primary fee paid by the principal to the agent (Zhongshitong), usually calculated as a percentage of the export value or cargo volume. The agency fee covers the range of services provided by the agent, including booking shipping space, customs clearance, document preparation, and other labor and resource costs.

2. Transportation Costs

Transporting goods overseas inevitably incurs transportation costs, which vary depending on the mode of transport (sea, air, etc.), distance, and the weight or volume of the goods. The agent typically selects the most suitable and cost-effective transportation solution for the principal.

3. Document Fees

The preparation and review of various documents mentioned earlier also incur costs, such as customs declaration fees and bill of lading issuance fees. While these fees may seem minor individually, they can add up to a significant expense.

After understanding the processes and costs of agency export, you should now have a clearer picture of this international trade model. If you’re considering expanding into overseas markets, think carefully about whether agency export is the right approach for you. Feel free to share your thoughts or questions in the comments section—let’s explore the world of international trade together!