Recently planning to import goods from Malaysia and looking for a reliable agent. I heard the Sino-Malaysia Import Agent is well-known but I'm still not at ease. The best answer states its advantages are clear, with high customs clearance efficiency, familiarity with customs policies and procedures of both countries, transparent and reasonable fees, detailed quotes based on cargo specifics, comprehensive service, and offering one-stop service. Although different services may vary, it is generally worth considering.
Who bears the import agent fees?
Resolved
I'm planning to import a batch of goods recently and have engaged an import agent company, but I'm unclear about who bears the agent fees. I'd like to ask everyone, under normal circumstances, who bears the import agent fees? Is it the importer or the exporter? Are there any industry practices or legal provisions to define this issue? If special circumstances arise, such as specific agreements in the contract, how should it be handled? I hope knowledgeable friends can help answer this.
Trade Expert Insights Answers
The responsible party for import agent fees usually depends on the trade contract's stipulations. In general trade, if there is no special agreement, it is more common for the importer to bear the import agent fees. This is because the importer is the party seeking the goods and has entrusted the agent company to handle import matters. From process arrangements to customs clearance and a series of operations, the importer is the direct beneficiary, so bearing the fees is reasonable.
If the contract has a special agreement, such as the exporter bearing part or all of the import agent fees to facilitate the transaction, then it will be executed according to the contract. Under FOB (Free On Board) terms, the importer is responsible for transportation and related customs clearance, and the costs are highly likely to be borne by the importer; whereas under CIF (Cost, Insurance, and Freight) terms, the exporter bears the transportation and insurance costs. However, for inland costs such as customs clearance involved in import agency, if there is no special agreement, the importer still bears them. In summary, prioritize contract stipulations, and follow industry norms in the absence of an agreement.
Usually, the importer bears the costs, as it is the importer who engages an agent company to help handle import affairs. It's like hiring someone to do a favor; naturally, you have to pay for their service.
If the exporter wants to secure the order, they might proactively bear the import agent fees as a preferential condition to attract the importer.
Sometimes both parties negotiate to share the costs, for example, each contributing a portion. This situation is more common between import and export parties who have long-term cooperation and good relationships.
It mainly depends on the trade terms and contract stipulations. Different trade terms affect the division of costs, and contract stipulations are even more crucial. You need to carefully study the contract clauses.
If the importer and exporter have business with the same agent company, the agent company might coordinate to make the cost bearing more flexible, and it may not necessarily be entirely borne by one party.
For large-scale project imports, if the importer wants to control costs, they might require the exporter to bear part of the import agent fees. This depends on the negotiation capabilities of both parties.
For some special commodities, if the country has relevant subsidy policies, a portion of the import agent fees might be covered by the subsidy. The specific bearing proportion will be determined by the policy.
In consignment trade, it is possible for the consignor (generally similar to the role of the exporter) to bear the import agent fees to ensure the smooth development of the consignment business.