What is export agency service?
Export agency service is a service that handles the necessary procedures and logistics flow for exporting products overseas.
This is a very convenient service, especially for businesses that are not familiar with international trade, such as small and medium-sized enterprises, sole proprietorships, and small-scale producers.Using this service makes it possible to ship products overseas smoothly. Masu.
The operations included in the export agency service are as follows.
1. Preparation of trade documents: We will create various documents related to export, such as invoices, packing lists, and waybills (B/L or AWB).
2. Customs clearance procedures: Customs clearance procedures are required at customs when importing and exporting, and we will provide support to ensure that these processes proceed smoothly.
3. Logistics arrangements: We arrange sea and air transportation, inland transportation, and containers to transport export goods.
4. Insurance Arrangement: To hedge risks during transportation, we will also arrange cargo insurance if necessary.
5. Advance payment of various expenses: We also offer a service where you can prepay various expenses related to export, such as customs fees and transportation costs, and bill them later.
The fee rate for this service varies depending on the business content provided, product type, weight, volume, export destination country, transportation method (shipping, air), added value-added services, etc.
Although the market price varies widely and cannot be generalized, it is common for service providers to set a certain fixed fee as a basic fee and add actual costs (such as freight and customs fees) in addition to that. .
The most accurate way to obtain information about fees is to contact each agency, but approximate market information may also be posted on the Internet.
It is a wise choice to obtain quotes from multiple agencies before using their services.
The information to be used as basis for this is based on estimates provided by each export agency, official websites, general information exchange in the industry, word of mouth, announcements from industry groups, etc.
When making a selection, it is a good idea to take into account not only the fees, but also the quality of the service, the range of support provided, past performance, etc.
Before knowing the market price: What costs are included in the export agency fee?
Export agency fees typically include multiple cost components.
Costs are often calculated based on the following information:
1. Labor costs: These are the costs associated with physical work such as packing and picking products.
2. Document preparation cost: This is the cost of preparing and arranging the documents necessary for export.
This includes invoices, packing lists, export declarations, etc.
3. Customs Clearance Fees: These are the costs required for customs clearance procedures and may also include fees for customs brokers.
4. Local transportation costs: Domestic transportation costs from factories and warehouses to ports and airports.
5. Shipping or Air Freight Charges: Actual sea or air freight charges.
This depends on the amount, weight, and destination of the cargo.
6. Additional Services: The cost of additional services as required, such as cargo insurance, special packaging materials, and hazardous materials handling.
7. Other Administrative Fees: Costs related to administrative procedures such as export licenses and regulations for certain products.
These are basic cost elements, but actual fees vary depending on the scope of services requested, the fee structure of the specific vendor, the type of product requested, and the country of export destination.
Prices may also fluctuate due to market conditions and variable factors such as fuel surcharges.
The basis for setting fees is to take into account the costs and profits incurred by export agents to provide these services.
Prices are affected by industry customs, competition, economic inflation, currency fluctuations, and other factors.
If you want to know the actual price of commissions, the surest way is to request quotes from multiple export agents and compare them.
It is also effective to research industry trends from international logistics industry magazines, online forums, economic databases, etc.
Are there any export agency costs other than fees that I should be aware of?
Fees for export agency services vary widely and are determined by many factors, including the type, size, weight, and value of the products handled, the distance between the exporting and importing countries, the volume of transactions, and the quality and speed of the service. .
Although it is difficult to give a general price, the fees for export agency services are usually calculated as a fixed percentage (for example, 5-15%) of the product's FOB price (Free On Board, or shipping terms). .
However, this is just an example; there are also companies that offer fixed fees.
In addition to fees, you should be aware of the following costs associated with export agency:
1. Transportation costs: Costs of international logistics such as sea mail and air mail.
2. Insurance premium: This is the cost of insuring export cargo.
3. Taxes and Duties: Import and export taxes and duties may apply.
4. Packing material cost: This is the cost of materials to properly pack the export item.
5.Certificate and document preparation costs: Costs for obtaining necessary documents such as export certificates, certificates of origin, and quarantine certificates.
6. Customs Clearance Fee: This is the cost of customs clearance related to the import and export of cargo.
7. Warehousing fee: Warehousing fee for storing the product before and after shipping.
8. International communication costs: These are communication costs associated with the exchange of documents and information between the exporting and importing countries.
These costs also vary depending on the vendor, and some may be included in the export agency's service fee, so before signing a contract, obtain a detailed estimate and ask for a thorough explanation of the service content and additional charges. That is important.
This is based on the general business principle that each service involves complexity and risk, which in turn incurs costs.
In addition, actual industry standards and fee structures can be understood in more detail by referring to published materials from the international logistics industry, vendor websites, and guidelines from industry experts.
When choosing an export agent or logistics company, clarifying these costs will help you avoid problems later on.
