What isExport RepresentationCommission? What is the difference between it and an intermediary fee?

Export agent commission is the service remuneration paid by the principal to the agent, usually calculated as a percentage of the contract amount. The fundamental difference from an intermediary fee is:

• Different Legal RelationshipsAgency relationships are governed by the entrusted contract provisions of the Civil Code, while intermediaries fall under brokerage contracts.
• Differences in service depthAgents must be involved in the full transaction execution, while intermediaries only facilitate transactions.
• Methods of Bearing ResponsibilityAgents bear joint and several liability for contract performance, while intermediaries do not get involved in specific transactions.

How are the latest commission rates for 2025 determined?

Current market conditions indicate that export agency commissions typically fluctuate within the 2%-8% range, specifically influenced by the following factors:

• Product Category: Machinery and electrical equipment averages 3-5%, while textiles can reach 5-8%.
• Market Region: Commissions in emerging markets are generally higher than in mature markets.
• Service scope:
  • Basic agency services (customs declaration, logistics) 2-3%
  • Full-process services (market development, after-sales support) starting from 5%

What legal risks might be involved in paying commissions?

Special attention must be paid to three major legal red lines:

• Anti-corruption ComplianceViolation of FCPA (Foreign Corrupt Practices Act of the United States) can result in a maximum fine of 2 million USD.
• Commercial Bribery RiskChinas Anti-Unfair Competition Law stipulates that commissions must not exceed 5% of the contract value.
• Foreign exchange controlCross-border payments must be made through legitimate banking channels and require complete service proof documents.

What are the compliant ways to handle commission payments?

It is recommended to adopt the ”three-document consistency” principle:

• Service contract clearly defines service content and billing standards.
• The agent issues a special VAT invoice.
• Bank payment remarks should state ”agency service fee”.

Starting in 2025, new electronic filing requirements mandate that all cross-border commission payments must register a filing number in the central banks cross-border payment system.

Export DrawbackHow are commissions handled for tax purposes?

According to Announcement No. 12 of 2025 by the State Taxation Administration:

• Commissions paid domestically can be included in export costs, but must be listed separately.
• Commissions paid overseas are not eligible for tax refunds.
• Commission invoices must state ”export agency services”.

How to prevent commission disputes?

It is recommended to specify six key clauses in the agency agreement:

• Commission calculation basis (FOB price or CIF price)
• Payment timeline (After Bill of Lading date/A complete export agency agreement should be attached with:after)
• Liability for breach of contract (Penalty for overdue payment)
• Dispute resolution mechanism (Recommended to choose China International Economic and Trade Arbitration Commission)
• Force Majeure Clause
• Handling method for exchange rate fluctuations

What key points should be noted when choosing an agency service provider?

It is recommended to evaluate from four dimensions:

• : Customs AEO certification, Class A foreign exchange management enterprises: Must possess Customs AEO certification and international freight forwarding qualification
• : Document review process, historical data of error rates: Requires provision of compliance review records and insurance certificates
• Technical capabilities: Check their EDI customs clearance system and logistics tracking platform
• Industry experience: No less than 3 operational cases for similar products

A case study of an electromechanical export enterprise shows that choosing a professional agency can increase customs clearance efficiency by 40% and reduce logistics costs by 15%.