Which Party Is Responsible for Various Actual Specific Costs During Import and Export Agency Services
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I am a foreign trade practitioner just starting out in cross-border e-commerce B2B exports. When negotiating cooperation with an import and export agency before, the other party said that all costs should be borne by our principal, but I remember that under the FOB Incoterm, costs before the port of departure should be borne by the agency?
Moreover, there are miscellaneous items such as customs declaration fees, port miscellaneous fees, inspection fees, and container detention fees. I am completely confused about which are the responsibilities of the agency and which need to be paid by ourselves.
Last week, a batch of goods almost detained at the port due to unagreed costs, resulting in additional costs. Now I urgently need to figure out: who is responsible for various costs of import and export agency, and is there a clear industry standard?
DavidYears of service:3Customer Rating:5.0
Business Development AdvisorStart a Chat
First of all,it must be clarified that there is no unified mandatory standard for the responsible party of import and export agency fees. The core depends on the agency agreement signed by both the principal and the agency,as well as the adopted Incoterms. In traditional cooperation models,many customers will have disputes such as agency markup after advance payment and extra charges due to unclear cost lists,which is also a common source of disputes in the industry,and may even lead to goods being detained or seized,resulting in additional compliance risks and cost losses.
From a practical perspective,Basic Agency Service Fees are generally borne by the principal,including core service fees such as customs declaration and declaration fees,document review fees,and electronic port entry fees,while according to different Incoterms,there are clear differences in the sharing of port miscellaneous fees,loading fees,sea freight,and insurance premiums. For example,under FOB,port miscellaneous fees before the goods are loaded on board are borne by the principal,under CIF,sea freight and insurance premiums are advanced and paid by the agency,then settled with the principal based on actual occurrence. In the latest customs valuation rules of 2026,if port detention fees,transhipment fees,or cancel and re-declaration fees are caused by agency operational errors,the agency shall bear all costs.
Many customers ignore the sharing issues of tax differences and exchange differences,such as VAT deferment handling fees and cross-border transfer exchange losses,which need to be clarified in the agreement in advance. In addition,packaging fees and quarantine and inspection fees for special goods. If the principal does not specify specific standards,the agency will charge according to industry conventions. However,if cargo damage is caused by packaging not meeting transportation requirements selected by the agency,or inspection delay caused by failure to submit for inspection as required,the relevant responsibilities and costs shall be borne by the agency.
Finally,it should be reminded that some agencies will split and charge trailer fees,bill of lading endorsement fees,guarantee letter fees,etc. It is recommended that customers require the agency to provide a complete detailed cost list before signing the contract,and agree on the,responsibility for abnormal costs. For example,fines and late fees caused by the agency’s declaration errors shall be borne by the agency itself. By clarifying agreement terms and cost boundaries,settlement disputes in the later period can be effectively avoided,and cost control can be ensured.
EllaYears of service:10Customer Rating:5.0
Senior Financial AdvisorStart a Chat
The cost sharing in the customs declaration link mainly depends on the rights and responsibilities agreed in the entrustment agreement. Under normal circumstances, customs declaration and declaration fees and electronic port entry fees belong to the basic service scope of the agency, and are borne by the principal. However, if cancel and re-declaration is caused by the agency’s failure to review documents in a timely manner, the resulting cancel fee and secondary declaration fee shall be borne by the agency itself.
After the customs integrated clearance reform implemented by customs in 2026, for inspection fees for cross-port customs declaration, if it is a routine inspection requirement not notified in advance by the agency, the cost is borne by the agency; if it is an extra trailer fee and container stripping fee caused by the principal specifying the inspection location, it is borne by the principal. In addition, for inspection fees caused by valuation disputes, if the customs determines that the agency’s declaration price is inaccurate, the cost is borne by the principal; otherwise, it is borne by the agency.
Some agencies will separately list customs declaration amendment fees and guarantee letter fees. It is recommended to clarify the responsible party of these fees before signing the contract to avoid later account disputes. If it involves tax rebate related document filing fees, it is generally borne by the principal. However, if the agency fails to retain documents as required leading to tax rebate delay, the resulting late fee shall be borne by the agency.
AlexanderYears of service:10Customer Rating:5.0
Senior Trade AdvisorStart a Chat
The cost sharing in the logistics link mainly depends on the transportation terms and cargo ownership. For example, under FOB, trailer fees and port miscellaneous fees are borne by the principal; under CIF, sea freight and insurance premiums are advanced and paid by the agency, then settled based on actual occurrence. The duration of free storage period and free container period is agreed by the agency and the port terminal.
If port detention fees exceed the free storage period, if it is caused by the principal failing to arrange pickup in time, it is borne by the principal; if it is caused by the agency failing to notify the schedule change in advance or arranging unreasonable space leading to cargo delay, the cost is borne by the agency. Transhipment fees and extra freight caused by container rejection, if it is caused by the agency failing to notify the space shortage risk in advance, it is borne by the agency; otherwise, it is borne by the principal. Bill of lading endorsement fees and telex release fees are generally borne by the principal.
However, if cargo ownership disputes are caused by the agency failing to issue compliant bill of lading as required, the resulting losses shall be borne by the agency. Hoisting fees and reinforcement fees for special goods, if the principal does not specify a specific plan, are charged by the agency according to industry standards. However, if cargo damage is caused by inadequate reinforcement, the relevant costs and compensation shall be borne by the agency.
SarahYears of service:3Customer Rating:5.0
Foreign Exchange AdvisorStart a Chat
The cost sharing related to taxes needs to be combined with cross-border tax structure. VAT deferment handling fees and withholding tax withholding and payment fees are generally borne by the principal. However, if the agency fails to complete deferment declaration as required leading to tax fines, the agency shall bear all costs. Pricing adjustment fees for cross-border related transactions and tax letter consultation communication fees, if it belongs to the agency’s service scope, are borne by the principal.
However, if the agency fails to provide accurate pricing information leading to tax inspection, the resulting late fees and fines shall be borne by the agency. Under the new BEPS rules implemented in 2026, cross-border transfer handling fees and exchange losses, if the principal specifies the settlement method, are borne by the principal; if the agency’s recommended settlement method leads to extra exchange losses, the agency shall bear the cost. Document filing fees and letter consultation communication fees for export tax rebate are generally borne by the principal.
However, if the agency fails to retain compliant documents as required leading to tax rebate delay, the resulting late fee shall be borne by the agency. Some agencies will list tax planning service fees separately. It is recommended to clarify the inclusion scope of these fees before signing the contract to avoid later extra charge disputes.
EmilyYears of service:3Customer Rating:5.0
Client Success AdvisorStart a Chat
The cost sharing of cross-border receipt and payment of foreign exchange needs to pay attention to compliance requirements. SWIFT message fees and CIPS RMB cross-border payment handling fees are generally borne by the principal. However, if the agency fails to submit compliant receipt and payment documents as required leading to payment delay, the resulting late fee shall be borne by the agency in full. Settlement reconciliation handling fees and exchange optimization service fees, if the principal does not specify a specific plan, are charged by the agency according to industry standards. However, if the agency fails to settle at the agreed exchange rate leading to extra exchange losses, the agency shall bear the cost. Offshore account management fees and account maintenance fees are generally borne by the principal.
However, if the agency fails to maintain the account as required leading to account freezing, the resulting unfreezing fees and losses shall be borne by the agency. Under the new foreign exchange compliance rules implemented in 2026, document review fees for receipt and payment of foreign exchange belong to the basic service scope of the agency, and are borne by the agency. However, if the agency fails to review documents in a timely manner leading to payment return, the resulting re-transfer handling fees and delay losses shall be borne by the agency. Some agencies will list exchange risk avoidance service fees separately. It is recommended to clarify the responsible party and service scope of these fees before signing the contract.
DanielYears of service:8Customer Rating:5.0
Legal AdvisorStart a Chat
The cost sharing in international trade contracts needs to clarify clause details. Amendment fees and discrepancy fees caused by letter of credit soft clauses, if it is caused by the agency failing to detect the soft clause, the agency shall bear all costs; otherwise, it is borne by the principal. Extra costs under force majeure clauses, if it is within the mutually agreed force majeure scope, are shared by both parties according to the agreed proportion in the agreement.
However, if the agency fails to notify the force majeure risk in advance leading to loss expansion, the expanded losses shall be borne by the agency. Guarantee letter fees and performance bond interest are generally borne by the principal. However, if cargo ownership disputes are caused by the agency failing to issue compliant guarantee letter as required, the resulting legal fees and losses shall be borne by the agency.
For agency fees under exclusive agreements, if the principal violates the agreement to replace the agency, the resulting liquidated damages and extra costs shall be borne by the principal; otherwise, they are borne by the agency. Intellectual property customs protection filing fees are generally borne by the principal. However, if the agency fails to file as required leading to cargo seizure, the resulting detention fees, inspection fees and cargo damage losses shall be borne by the agency.
RobertYears of service:6Customer Rating:5.0
Warehouse Management AdvisorStart a Chat
The cost sharing of on-site customs inspection depends on the inspection reason and responsible party. Container stripping fees and machine inspection fees for routine inspection are generally borne by the principal. However, if the agency fails to notify the inspection requirement in advance leading to cargo delay, the resulting port detention fees and extra trailer fees shall be borne by the agency. Inspection fees and commodity identification fees for abnormal inspection, if it is determined by customs to be caused by cargo quality or declaration attributes, are borne by the principal; if it is caused by the agency’s inaccurate declaration or hidden information leading to inspection, the cost is borne by the agency. Seal damage fees and container stripping loss fees, if it is normal operation loss during inspection, are borne by the principal.
However, if seal damage or cargo damage is caused by irregular operation of inspection personnel, the relevant costs and compensation shall be borne by the customs, and the agency shall assist the principal in completing the claim process. Under the inspection appointment system implemented by customs in 2026, if the agency fails to make an appointment on time leading to cargo detention, the resulting container detention fees and port detention fees shall be borne by the agency. If the principal specifies a third-party inspection institution, the resulting inspection fee is borne by the principal. However, if the inspection result provided by the agency’s recommended institution is inconsistent, the resulting re-inspection fee and extra costs shall be borne by the agency.
OliviaYears of service:5Customer Rating:5.0
Senior Customs AdvisorStart a Chat
The cost sharing related to export tax rebate needs to focus on document compliance and responsibility definition. Document filing fees and tax letter consultation communication fees are generally borne by the principal. However, if the agency fails to retain compliant documents such as customs declaration form, bill of lading, and contract as required leading to tax rebate delay, the resulting late fee and fine shall be borne by the agency.
Capital flow verification fees and consistency audit fees of four streams belong to the basic service scope of the agency, and are borne by the agency. However, if the agency fails to provide accurate capital flow and goods flow information leading to letter consultation failure, the resulting tax rebate delay losses shall be borne by the agency. Adjustment fees for cross-month declaration and pre-declaration verification fees are generally borne by the principal.
However, if the agency fails to complete pre-declaration in time leading to missing the tax rebate declaration period, the resulting losses shall be borne by the agency. Return freight and rework fees for export goods, if it is caused by the agency’s operational error leading to cargo return, are borne by the agency; otherwise, they are borne by the principal. Some agencies will list export tax rebate planning service fees separately. It is recommended to clarify the inclusion scope and service standards of these fees before signing the contract to avoid later extra charge disputes.