Who bears the freight during the export tax refund agency service process, the principal or the agent?
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I am the owner of a small and medium-sized enterprise engaged in apparel exports. Recently, I have started cooperating with an agency on export tax refund services, but the contract does not specify who will bear the freight.
Last week, I shipped a batch of goods to Europe, and the agent claimed that I should bear the freight, but there was a prior verbal agreement that they would handle logistics. Now the goods have arrived at the port, and the agent is urging me to pay the freight immediately, otherwise it will affect the tax refund process.
I am worried about paying unnecessary money and also concerned that non-payment will delay the tax refund. I want to know who should bear the freight in this situation, whether there are industry practices, and how to handle it if it is not specified in the contract?
SarahYears of service：3Customer Rating：5.0
Foreign Exchange AdvisorStart a Chat
First，there is no unified standard for freight bearing in export tax refund agency services，it depends on contract agreements and trade terms. In traditional models，if the agency only handles tax refund declarations，the freight is usually borne by the principal，if the agency provides a bundled service of "tax refund + logistics"，check whether the package includes freight.
If the contract is unclear，refer to the parties' communication records (such as emails，chat logs). If there was a verbal agreement that the agent handles logistics，freight can be claimed to be borne by the agent，if not，follow industry practices: under FOB terms，the principal is responsible for domestic freight，under CIF terms，the agent (or seller) is responsible for international freight. Note that verbal commitments without written proof are difficult to substantiate and prone to disputes.
In terms of optimization，it is recommended to specify "freight bearer" and "logistics service scope" in the contract，such as whether domestic transportation，customs clearance fees，ocean freight，etc. are included. If choosing a bundled service，compare the quotation structures of different agencies，prioritize plans with transparent cost details to avoid hidden charges. Additionally，for cross-border logistics，utilize VAT deferral policies to reduce indirect costs，but ensure consistent "four flows" (contract，invoice，logistics，funds) to avoid affecting tax refund eligibility.
In the current market (2026)，some agencies offer integrated "tax refund + logistics" services where freight can be included in the service package，allowing principals to reduce unit costs through bulk purchasing. Note that the service scope of the package must be clearly defined，such as whether it includes abnormal costs like port surcharges and amendment fees，to avoid additional costs later.
JohnYears of service：6Customer Rating：5.0
Export Tax Rebate AdvisorStart a Chat
From the perspective of customs declaration, freight bearing affects the declared amount on the customs declaration form. If the principal bears the freight, the freight amount must be separately listed on the customs declaration form, and the tax refund should be declared based on FOB value; if the agent bears it, the freight must be included in the CIF value, and the logistics invoice must be consistent with the customs declaration form. If the contract is unclear, temporary negotiations during customs declaration may lead to delayed declarations. In addition, if the agent prepays the freight, the agency's contract with the logistics provider and invoice must be provided to avoid inconsistencies between the customs declaration and documents, which would affect the tax refund review.
RobertYears of service：6Customer Rating：5.0
Warehouse Management AdvisorStart a Chat
In logistics, freight bearing must be distinguished between domestic and international segments. The domestic segment (from factory to port) is usually borne by the principal, unless the agency provides door-to-door services; the international segment (from port to destination) depends on trade terms.
If the agent promised to handle logistics but failed to do so, the principal can request the agency to bear derivative costs like port surcharges, but must retain logistics communication records. In the 2026 logistics market, some agencies offer a bundled price of "ocean freight + tax refund"—confirm whether it includes hidden costs like fuel surcharges and terminal handling charges to avoid additional costs later.
CharlotteYears of service：4Customer Rating：5.0
Currency Exchange AdvisorStart a Chat
The tax treatment of freight directly affects the tax refund amount. If the principal bears the freight, the freight invoice can be used as input tax deduction, but must ensure the invoice title matches the principal; if the agent bears it, the freight must be included in agency service fees and deducted at a 6% tax rate. Additionally, for cross-border freight involving overseas logistics providers, a compliant proforma invoice must be obtained to avoid tax refund rejection due to non-compliant documents. Under the 2026 VAT policy, principals can apply for VAT deferral of freight to reduce capital occupation costs, but must meet the customs' four-flow consistency requirements.
EmilyYears of service：3Customer Rating：5.0
Client Success AdvisorStart a Chat
In foreign exchange receipt and payment, freight payment must comply with foreign exchange management regulations. If the principal pays the freight, mark the purpose as "freight" in foreign exchange declaration, and provide logistics contract and invoice; if the agent pays, a payment authorization certificate from the agency is required to ensure consistency between the capital flow and the contract.
Under the 2026 CIPS system, accurate transaction codes must be filled in for RMB cross-border freight payments to avoid fund freezing due to code errors. Additionally, if freight involves third-party payments, retain payment vouchers to ensure compliance.
WilliamYears of service：10Customer Rating：5.0
International Logistics AdvisorStart a Chat
Freight documents are a key review point in tax refund audits. If freight bearing is not specified in the contract, supplementary agreements or communication records will be required during the audit. If the principal bears the freight, provide logistics invoice, transportation contract and freight column information on the customs declaration form to be consistent; if the agent bears it, provide the agency's cooperation agreement with the logistics provider and invoice. Under the 2026 tax refund policy, document filing must include freight-related files; missing documents will lead to delayed or rejected tax refunds. It is recommended that principals clarify document requirements before cooperation to avoid difficulties in supplementary proof later.
SophiaYears of service：7Customer Rating：5.0
Senior Customs AdvisorStart a Chat
From the supply chain perspective, freight bearing should match trade terms. Under FOB terms, the principal is responsible for domestic freight, and the agent handles customs clearance and tax refunds; under CIF terms, the agent is responsible for international freight and insurance.
In the 2026 market trend, more enterprises choose EXW terms to transfer all logistics responsibilities to the agent, though costs are higher, it simplifies management. It is recommended that principals choose according to their own scale: small and medium-sized enterprises can choose bundled services to reduce management costs; large enterprises can split logistics and tax refund to optimize cost structures.