What are the costs involved in import agency business?

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Our company plans to engage in import agency business but is unclear about the costs involved. We'd like to ask everyone, what costs are typically incurred in import agency business? Are they borne by the principal or the agent? We hope experienced friends can explain in detail, so we can have a clear understanding and plan our budget in advance.
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Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

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Import agency business involves various types of fees. Firstly, there's the agency fee, which is charged by the agent for providing import services to the principal. It is generally calculated as a percentage of the import cargo value, typically ranging from 1% to 5%, and is determined by mutual agreement between both parties.

Secondly, there are import customs duties and VAT, which are calculated based on the HS code of the imported goods and relevant tax rates, and are usually borne by the principal.

Then there are transportation fees, including international sea freight, air freight, etc., determined by the mode of transport and factors such as cargo weight and volume.

In addition, there might be customs declaration fees and inspection fees, for handling import and export customs declaration and inspection procedures. As for who bears these costs, it is usually stipulated in the agency contract. In most cases, actual expenses such as customs duties, VAT, and transportation fees are borne by the principal, while the agency fee is paid by the principal to the agent.

References: How to Actually Run an Import and Export Trade Agency?
Michael Zhang
Michael ZhangYears of service：10Customer Rating：5.0

Customs Clearance SpecialistStart a Chat

In addition to the above, there are terminal handling charges, related costs incurred for storing goods at the terminal after arrival at port, calculated based on the weight in tons or volume of the goods.

Emma Zhao
Emma ZhaoYears of service：3Customer Rating：5.0

Export Documentation SpecialistStart a Chat

If special requirements for commodity inspection and quarantine are involved, there might also be special inspection and quarantine fees, such as microbiological testing for some imported food products.

Richard Wu
Richard WuYears of service：8Customer Rating：5.0

Global Trade Operations ExpertStart a Chat

Storage fees cannot be overlooked. If goods cannot be picked up promptly after arrival at port, storage in a warehouse will incur fees, with the fee standard depending on the warehouse type and storage duration.

Thomas Li
Thomas LiYears of service：7Customer Rating：5.0

Import Licensing AdvisorStart a Chat

There are also bank handling fees, for operations such as issuing letters of credit. Banks will charge certain service fees, the specific amount depends on bank regulations and transaction details.

Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

Sometimes, goods may require fumigation and disinfection, which also incurs costs, especially for goods with wooden packaging.

Daniel Kim
Daniel KimYears of service：4Customer Rating：5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

Document processing fees also exist, such as fees for preparing and handling various import documents, like bills of lading and packing lists.

David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

There might be document transfer fees, especially when a bill of lading exchange is involved, typically ranging from tens to hundreds.

Sophia Wang
Sophia WangYears of service：6Customer Rating：5.0

International Logistics CoordinatorStart a Chat

If goods require special transportation conditions, such as cold chain transportation, additional cold chain transportation fees will be incurred, which are relatively high.

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