Considering becoming an imported red wine agent, although seeing the improvement in living standards driving demand growth, I am worried about intense competition and issues with import procedures and product selection, and am asking if agency is worth pursuing. The best answer points out that imported red wine agency has both opportunities and challenges; market demand is growing but competition is fierce. One needs to be familiar with import procedures, select good products, and establish sales channels. If the key issues can be resolved, it is worth trying.
Does the agency export fee include freight?
Resolved
Our company plans to find an agency company for export business and is currently discussing fee-related issues. We would like to know what items are generally included in the agency export fee? Will freight be included in the agency export fee? I am afraid that there will be unclear fees and I will spend money in vain, so I want to figure it out in advance. Are there any friends who understand this aspect, please help to answer, thank you!
Trade Expert Insights Answers
There is no fixed standard for whether agency export fees include freight, which mainly depends on the contract terms you sign with the agency company.
Generally speaking, agency export fees usually cover agency fees, customs declaration fees, document fees, and other fees directly related to export agency operations.
If the contract stipulates that the agency company is responsible for transportation arrangements, then the freight may be included in the agency export fee. In this case, the agency company will calculate the freight based on the transportation method (sea, air, etc.) and the weight and volume of the goods, and add it to the total fee.
However, if the contract only stipulates that the agency company is responsible for export process operations and does not involve transportation, then the freight is not included in the agency export fee, and you need to negotiate and pay the transportation company yourself. Therefore, when negotiating with the agency company, you must clarify the contract terms and the definition of each fee to avoid disputes later.
Not necessarily, it depends on how you negotiate. If the agency contract is ambiguous, it is easy to argue. You can ask the agency company for a fee breakdown, clarifying whether freight is included, so it will be clear!
Some agency companies, for the sake of convenience, include freight in their agency export fees for a combined quote. But some calculate it separately, as transportation is variable and separate calculation is more flexible. You can find familiar transportation channels yourself.
It depends on your requirements for the agency. If you want to save yourself trouble and let the agency handle everything, freight may be included in the agency export fee. If you want to control transportation yourself, then freight will be calculated separately.
The key is still how the contract is signed. If you don't have special requirements, the agency generally won't proactively include freight because transportation is complex and they are afraid of trouble.
Generally, agency fees and freight are separate, but some agencies, to attract customers, offer package quotes that include freight. You need to compare the quoting methods of different agencies.
If the agency company has cooperation with transportation companies, they may include freight in the agency export fee and get preferential prices. You can ask the agency if this is the case.
Actually, it mainly depends on your negotiation with the agency. Choose the method you think is more cost-effective. If you can save money by finding transportation yourself, don't let the agency include freight.
Whether freight is included in the agency export fee depends on the negotiation between both parties. If you are worried about fees, be sure to communicate clearly with the agency before signing the contract.