A company plans to find an agent for importing goods and is confused about whose trade volume should be counted for the agency import, as it affects both parties' business expansion and policy enjoyment. The best answer states that the attribution of trade volume depends on the contract signing method and business model. If the contract is signed in the name of the principal and the cash flow and ownership belong to the principal, the trade volume is usually attributed to the principal; if the contract is signed in the name of the agent, it may be attributed to the agent company, or it can be clarified in the cooperation agreement.
How to Accurately Define Agency Import Trade Volume?
Resolved
Our company intends to engage an agent for import trade, but we are not very clear on how agency import trade volume is defined. Is it solely the value of the goods themselves, or should various taxes, transportation fees, etc., be included? Additionally, when calculating the trade volume, are there any special circumstances that need to be taken into consideration? We hope professional individuals can help answer this, so I can have a clear understanding of the definition of agency import trade volume.
Trade Expert Insights Answers
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Agency import trade volume generally refers to the total value of imported goods, usually calculated based on the CIF (Cost, Insurance, and Freight) price. This means it includes not only the value of the goods themselves but also the freight and insurance costs required to transport the goods to the designated port of destination. Furthermore, taxes such as customs duties and value-added tax incurred during the import process are generally not included in the agency import trade volume; they are considered an additional part of the import costs.
Regarding special circumstances, if the goods are damaged or lost during transit, the definition of trade volume may need to be adjusted according to relevant agreements or laws. Also, if trade discounts or rebates are involved, the actual trade volume should be based on the final settlement amount. In summary, defining agency import trade volume requires considering multiple factors, and the key is to follow the trade contract stipulations and internationally accepted principles.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
The agency import trade volume primarily depends on the contract stipulations. If the contract clearly states a specific price term, then that will be used. For example, with FOB price, the trade volume is basically the value of the goods, and freight and insurance costs need to be calculated separately.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Generally, the trade volume calculation will be based on the amount on the customs declaration form, which reflects the value of the goods upon arrival, including the cost of goods, freight, and insurance. Special circumstances, such as the import of samples, if free of charge and in small quantities, will have a different trade volume definition.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Agency import trade volume needs to consider exchange rate fluctuations. If the exchange rate changes from the contract signing date to the actual settlement date, the trade volume will be calculated based on the amount determined by the exchange rate at the time of settlement.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
If the imported goods involve intellectual property fees, such as patent fees, some will be included in the trade volume, depending on the negotiation between the parties and industry practices.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If there are phased imports, the trade volume is the sum of the value of goods in each phase calculated according to the stipulated price terms.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
The definition of trade volume sometimes also depends on the trade method. For example, consignment trade has a different method of determining trade volume compared to general imports.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
For imported goods with quality disputes, the trade volume may need to be determined after the dispute is resolved, based on the final negotiated or adjudicated outcome.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
For agency imports in bonded zones, the calculation of trade volume may have special provisions due to bonded policies, so attention should be paid to local policy details.