Who Should Pay for Freight Charges in Agency Export?

Resolved
  • 匿名
  • 159
  • 10 Answers
NO.20260624*****

[Challenge] *****, [Solution] *****, [Process & Cost] *****

Access Full Plan
Our company has hired an agent to help export goods, and now there's an issue regarding the payment of ocean freight. We're unsure who is responsible. The agent stated that according to industry practice, they only handle export-related procedures, and the ocean freight should be paid by us. However, I feel that since we've entrusted them with the agency export, this cost should be included in their agency services. I'd like to ask everyone, who ultimately pays for ocean freight in agency exports? Are there any relevant industry regulations or standards?
Trade Experts Q&A
Trade Experts Q&A

Consult with Our Trade Experts

Quick, reliable advice for all your trade needs, from sourcing to shipping.

Trade Expert Insights Answers

Robert Tan
Robert TanYears of service：5Customer Rating：5.0

International Market Development AdvisorStart a Chat

The payer of ocean freight charges in agency exports typically depends on the agency export agreement signed by both parties in advance. If the agreement clearly stipulates that the ocean freight is to be borne by the principal (i.e., your company), then you will be responsible for payment. If the agreement does not make explicit provisions, generally speaking, the agent's primary responsibility is to assist in handling a series of export procedures such as customs declaration, inspection, and foreign exchange settlement. Ocean freight is not within the normal scope of agency services, so it is highly probable that the principal will bear the cost.

However, in actual business practice, there are cases where agents promise to include ocean freight in the total price of agency services to secure business. If you find the agent's fees too high, you can negotiate with the agent to redefine the scope of cost responsibility. In summary, the key lies in the agreement; if there is no agreement, the principal is inclined to bear the cost, but the specifics can be resolved through negotiation.

References: Looking for a Zhengzhou Import and Export Agency, Which One is Good?
Kevin Huang
Kevin HuangYears of service：3Customer Rating：5.0

E-Commerce Export AdvisorStart a Chat

Generally, ocean freight is paid by the party entrusting the export. This is because the agent merely provides agency services, and ocean freight is a cost incurred by transporting the goods, usually not included in the agency service fees.

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

Export Documentation SpecialistStart a Chat

This depends on what was discussed when you negotiated the agency business. If it was clearly stated during the discussion that the agency service fee was all-inclusive, then the agent should pay the ocean freight; if it wasn't mentioned, then by common sense, the principal pays.

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

Import Licensing AdvisorStart a Chat

For agency exports, the principal typically pays the ocean freight. After all, the agent primarily handles matters related to the export process, and transportation costs are generally borne by the cargo owner.

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

Global Trade Operations ExpertStart a Chat

If the agency export agreement doesn't specify, then according to industry practice, the company entrusting the export pays the ocean freight. However, you can also discuss it further with the agent.

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

International Logistics CoordinatorStart a Chat

Generally, whoever owns the goods bears the ocean freight. When entrusting agency export, it means the principal pays the ocean freight, unless otherwise agreed.

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

Commodity Inspection and Quarantine ConsultantStart a Chat

In agency exports, if there is no special agreement beforehand, the ocean freight is basically paid by the principal, and the agent will not bear this cost without reason.

Michael Zhang
Michael ZhangYears of service：10Customer Rating：5.0

Customs Clearance SpecialistStart a Chat

Under normal circumstances, the principal pays the ocean freight. Of course, if the agent wants to secure the business and agrees to include ocean freight, then the agent pays.

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

Trade Dispute MediatorStart a Chat

It mainly depends on the agency agreement. If there are no provisions, the principal usually pays the ocean freight, as it is a direct cost of transporting the goods.

Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

In most cases, the principal pays the ocean freight. The agent's services are more focused on handling export procedures, and ocean freight is not part of their regular responsibilities.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

You May Also Like

How to Deal with an Escaped Export Agency Company?

The user found an export agency company that has absconded, with goods in transit and payments unsettled. They are asking for advice on how to deal with the situation. The best answer suggests collecting relevant documents and evidence, contacting the carrier to control the goods, and communicating with the customer for direct transactions. If payments are not recovered, legal action can be taken with asset preservation. Reporting to industry associations or regulatory bodies may also help minimize losses.

How to Handle Payment for Export Agency Business? Seeking Advice!

Want to start an export agency but unclear about payment procedures, such as the payee for customer payments, the process of receiving funds, exchange rate handling, and how to deal with customer non-payment. The best answer points out that payment operation models are diverse, and for receiving funds, the payment method needs to be clarified. A fixed exchange rate can be agreed upon to deal with exchange rate issues. In case of customer non-payment, communicate amicably first, and if necessary, resolve through arbitration or legal channels.

Does the characterization of agency export require supplementary tax payments? Are there any knowledgeable friends who can share their insights?

The company is engaged in agency export business and wants to know if the characterization of agency export necessitates supplementary tax payments. The best answer states that if the business is compliant, the entrusted party typically does not need to pay supplementary tax. If there are violations, such as exporting under its own name but not bearing risks, the tax authorities may levy tax as domestic sales. The supplementary tax standard is calculated based on the VAT rate and sales amount. Compliant operations, ensuring business authenticity, and complete documentation are crucial.

Does Stamp Duty Need to be Paid on Export Agency Fees? Let's Discuss!

The company is involved in export agency business and needs to pay export agency fees. It inquires whether stamp duty needs to be paid and the payment standards. The best answer points out that export agency fees are generally not within the scope of stamp duty taxable items, as the tax categories are positively enumerated and this business is not listed. However, policies vary by region, and it is recommended to consult local tax authorities for confirmation.

How to handle import agency without payment? Are there any good solutions?

States that the company only acts as an import agent and does not handle payments, asking how to operate and what key points to note. The best answer indicates that it's important to clearly define responsibilities, sign detailed agreements, accurately declare during customs clearance and reflect client information, maintain close communication with the client to ensure timely payment, promptly report business situations to the foreign exchange administration and provide documentation, and emphasize tracking and managing the payment process.

Is it good to be an agent for imported brand spindle? What are the prospects?

Some people are considering becoming an agent for imported brand spindles and are inquiring about market demand, profit margins, agency challenges, initial investment, and subsequent operational difficulties in this industry. The best answer points out that this agency presents opportunities and challenges. Market demand is strong in the high-end manufacturing sector, profits vary by brand, and there are challenges such as customs policies. Initial investment ranges from tens of thousands to millions, and operations require a professional team. Choosing a good brand and making good plans will increase the chances of success.