Home»Import Representation» How do agency fees affect your profit margin after winning an imported equipment bid?
The Cost Code Behind Bid Winning Notices
2025 Southeast Asian infrastructure market bidding data shows that successful bidders experienced an actual profit loss rate of 12.8%, with 37% attributable to improper agency fee management. A state-owned enterprise in VietnamphotovoltaicEquipment Importsfailed to fully comprehendFOB clause additional conditionsin the tender documents, resulting in 420,000 USD in excess agency service fees.
Four-Dimensional Perspective on Agency Fee Composition
Professionalforeign tradeAgency service fees include these core elements:
Basic service fee
0.8%-1.5% of CIF value
Includes customs clearance, transportation, document preparation
Presentation of L/C documents: 800 - 1500 yuan per order
Agency for export tax rebate: 5% - 8% of the tax rebate amount
Demurrage cost transfer clausesCausing port expenses to exceed budget by 200%
2025 agency fee optimization strategies
Based on the newly effective RCEP agreement, the following measures are recommended:
Phased billing model
Split equipment transportation into:
Pre-hub port segment (fixed rate) + post-destination port segment (flexible rate)
Cost review mechanism
Require agents to provide:
① Copy of customs valuation records
② Detailed breakdown of actual transportation costs
③ Documentation for emergency expense usage
New opportunities brought by regional trade agreements
Effective in 2025Upgraded China-ASEAN Free Trade AreaStipulates:
Tariff reductions for engineering equipment imports expanded to 89 product categories
Electronic origin declarations reduce customs clearance time by 40%
Allowed use of composite origin rules to lower compliance costs
A tunnel boring equipment importer achieved the following in a Malaysian project by applying new regulations: ? Agent service fees reduced by 22%
? Demurrage time shortened to within 72 hours
? Tariff dispute resolution cycle compressed to 15 working days