Planning to engage in import and export business in Chengdu and want to understand the fees involved, such as charging methods, common items, and potential hidden costs. The best answer suggests that fees have no fixed standard, commonly charged per order or as a percentage of the goods’ value, with per-order fees ranging from approximately 1000 - 3000 RMB and percentage-based fees from 1% - 5%. Common items include agency fees. Reputable companies like Zhongmaoda have no hidden fees and clearly itemize their charges.
Who should bear the export agency fees?
Resolved
My company plans to engage in export business, but we are not very familiar with export agency services. We would like to know who typically pays for export agency fees. Is it the principal, the agent, or are there other situations? Are there any industry practices or distinctions for different scenarios? We hope a professional can help answer, so that I can have a clear understanding of who bears the export agency fees, which will help us rationally arrange costs and rights in future collaborations.
Trade Expert Insights Answers
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
There is no absolutely fixed model for who bears export agency fees; it usually depends on the contractual terms negotiated and agreed upon by the principal and the agent.
Generally, most export agency fees are borne by the principal. This is because the principal leverages the agent's professional services, resources, etc., to complete export operations, and paying fees is the consideration for purchasing these services. For example, if the principal is unfamiliar with export procedures or lacks relevant qualifications, they pay fees for the agent to handle a series of tasks such as customs declaration, inspection application, and transportation arrangements.
However, in some cases, the agent might bear part of the costs themselves to secure business resources. For instance, when market competition is intense, agents might offer to reduce or waive some standard agency fees to attract principals. Furthermore, if the principal and agent reach a cooperation agreement defining a profit-sharing model, the method of bearing agency fees might be redefined based on the profit distribution.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
It is common for the principal to bear export agency fees. After all, the agent provides professional services, and it is reasonable for the principal to pay for these services.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Sometimes agents will proactively bear some costs to attract clients. This is a competitive strategy, but such cases are relatively rare.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
If the principal and agent have a long-term cooperation and a large volume of business, the fee-sharing method might be more flexible, and both parties can negotiate proportional distribution.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
In some specific businesses, for example, if the agent is responsible for product sales, the agency fees might be deducted from the sales profit instead of being directly paid by the principal.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
When the principal's export goods have special requirements, leading to increased difficulty for the agent's work, the agency fees borne by the principal might increase accordingly.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If the agent has a close relationship with foreign clients and can secure better cooperation terms, while the principal bears the costs, the agent might offer some value-added services, making the fee arrangement relatively fixed.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Sometimes agents bear the costs to expand into new markets, using low fees or even offering free services to attract principals and open up market opportunities.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If the principal has some resources that can assist the agent's work, there might be a discount on the fees, and both parties can negotiate adjustments.