Understanding how much money can be recovered from agent export and its influencing factors. The best answer indicates that the amount recovered from agent export is affected by factors such as goods sales revenue, agent fees, and export tax refunds. The calculation formula is: Amount Recovered from Agent Export = Goods Sales Revenue - Agent Fees + Export Tax Refund Amount. In reality, other factors like miscellaneous expenses and exchange rate fluctuations may also be involved.
Who Should Ultimately Bear the Export Customs Declaration Agency Fees?
Resolved
I recently have a batch of goods to export and engaged a customs declaration agency company to help handle customs declaration matters. But now I'm a bit confused about fee allocation, and this wasn't clarified in the contract with my partner. I'd like to ask, under normal circumstances, who bears the export customs declaration agency fees? Is it the consignor or the consignee? Are there any industry practices or relevant legal bases I can refer to?
Trade Expert Insights Answers
There is no absolutely fixed model for who bears the export customs declaration agency fees; it is usually determined by negotiation between the buyer and seller in the contract.
If the contract is not clear, according to international trade practices, under FOB (Free On Board) terms, the consignor is responsible for all costs before the goods are loaded onto the vessel, including export customs declaration agency fees, because at this point the goods have not yet crossed the ship's rail, and both risks and costs are borne by the consignor. However, under CIF (Cost, Insurance and Freight) or CFR (Cost and Freight) terms, although the main costs are borne by the seller, the specific customs declaration agency fees can also be negotiated by both parties. Theoretically, the seller bears most of it, as the seller is responsible for arranging transportation and insurance until the port of destination. Nevertheless, in actual business, both parties may flexibly adjust who bears the costs based on factors such as their cooperative relationship and market conditions. Therefore, it is recommended to clearly specify the allocation of export customs declaration agency fees and other various costs when signing trade contracts to avoid future disputes.
Generally speaking, if the consignor wants to save trouble and delegates everything to the freight forwarder, then the consignor will likely bear these costs. If the consignee requests a designated freight forwarder, it's also possible that the consignee bears this cost, depending on how it's negotiated.
This depends on the negotiating power of both parties; the stronger party might push the costs onto the other. If the market supply exceeds demand, the seller is more likely to bear the costs to facilitate the transaction.
Among some long-term partners, customs declaration agency fees might be alternately borne to balance costs for both parties and enhance the cooperative relationship.
Sometimes, if the goods involve special regulatory conditions, requiring the consignee to cooperate in providing relevant documents, it is reasonable for the consignee to bear part of the costs.
If there was no prior agreement between the parties, this time they can refer to past similar business practices to see who typically bore the costs and continue that practice.
If the goods are customized, and the consignee has special requirements for specifications, the consignor can request the consignee to bear the customs declaration agency fees during negotiations.
If the trade method involves special circumstances such as consignment, the bearing of customs declaration agency fees might differ from the norm, requiring both parties to renegotiate.
From a responsibility perspective, it is also common for the party responsible for arranging customs declaration operations to bear the costs, which facilitates cost accounting and management.