--- title: "What Trade Terms Should Be Adopted to Confirm the Bearer of Export Freight Forwarding Charges?" description: "The head of a Shanghai-based home goods export enterprise fell into anxiety over disputes on trade terms and freight forwarding charge bearing，and worried about demurrage and claim risks. Clarifying charge bearing rules under different trade terms，and adopting methods such as detailing responsibilities via contracts，phased payment and retaining vouchers，can effectively avoid business risks triggered by unclear charge allocation，guarantee smooth export procedures and protect enterprises' legitima..." url: "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html" language: "en" type: "Q&A" category: "Freight Forwarding Q&A" datePublished: "2026-08-07" dateModified: "2026-08-07" brand: "Zhongshen Trading China" answerCount: 10 --- # What Trade Terms Should Be Adopted to Confirm the Bearer of Export Freight Forwarding Charges? ## Question I am the head of a small micro-enterprise focusing on home goods export based in Shanghai. I signed an FOB Shanghai order with a German client last month, and was originally convinced that the freight forwarding charge should be borne by the foreign client. But recently the freight forwarder has been repeatedly urging me for payment, claiming that the default industry practice is prepayment by the shipper. Now the goods have already been warehoused waiting for loading, the port cutoff is approaching, yet the charge dispute is still unresolved. I am extremely worried that unresolved charge will lead to goods detention at port, incur detention charges and even affect customs clearance. Besides, I had a CIF Hamburg order before, the freight forwarder asked me for full upfront payment of the agency charge. I am worried that I will have no recourse if the freight forwarder makes operational mistakes after payment, and I want to get a clear answer on who exactly should pay for export freight forwarding charges under different trade terms, and how to clarify responsibilities via contracts to avoid future disputes? ## Answers ### Answer 1 — Best Answer First，we need to clarify a common industry misconception: many freight forwarders ask shippers to prepay freight forwarding charges under FOB terms in the name of "industry default"，but they actually confuse the concepts of "prepayment" and "bearing" -- Under FOB terms，upstream charges such as booking and inland transportation arranged by the freight forwarder are borne by the shipper，but ocean freight and destination port agency charges are borne by the buyer. Requiring the shipper to bear all charges is misleading and non-compliant. Unclear charge allocation will trigger a series of negative consequences: for example，the freight forwarder withholds the bill of lading due to unpaid charges，the goods cannot clear customs after arriving at port，incurs demurrage and detention charges，and even gets auctioned by the customs，delayed delivery caused by this will also lead to claims from foreign clients，damage long-term cooperation trust，and even result in loss of core clients. Effective risk prevention measures: First，clarify responsibilities strictly in accordance with INCOTERMS®2020 trade terms. Under FOB terms，the shipper is only responsible for agency charges before loading at the port of departure，under CIF terms，the shipper needs to bear the full cost of freight forwarding services. Second，clearly specify **detailed charge allocation and payment nodes in the freight forwarding contract**，and avoid vague expressions such as "relevant charges" and "all charges". Practical risk mitigation tips: You can ask the freight forwarder to provide an itemized charge list，and adopt **phased payment**，for example，pay 30% before booking，pay 70% against the copy of bill of lading after loading. Meanwhile，retain all charge vouchers，communication records and contract documents，which can be used as core evidence for rights protection when a dispute occurs. **status:** accepted **Author:** Lucas Liu **Date:** 2026-08-08 ### Answer 2 In the customs declaration环节, the bearer of customs declaration fee, inspection declaration fee and other charges charged by the freight forwarder should match the trade terms: Under FOB terms, the shipper shall bear the customs declaration and inspection agency charges at the port of departure, as this is a necessary procedure before loading; Under CIF/CFR terms, the shipper also shall bear the customs declaration agency charge at the port of departure, and the customs clearance agency charge at the destination port is borne by the buyer. It should be noted that for amendment fee and deletion & re-filing fee caused by declaration error, the responsible party must be clarified -- If it is caused by the freight forwarder's operational error, it shall be borne by the freight forwarder; If it is caused by incorrect documents provided by the shipper, it shall be borne by the shipper. In addition, for late declaration fee incurred during customs price verification, if it is caused by the freight forwarder's failure to declare on time, the freight forwarder shall bear the responsibility, otherwise it shall be borne by the shipper. **status:** suggested **Author:** Evelyn Li **Date:** 2026-08-08 ### Answer 3 From the perspective of the full logistics chain, the bearing of freight forwarding charges should be combined with the title transfer node: Under FOB terms, the title of goods transfers to the buyer after loading, therefore agency charges such as inland transportation, booking and port miscellaneous charges before loading are borne by the shipper, ocean freight and destination port agency charges after loading are borne by the buyer; Under CIF terms, the title of goods also transfers after loading, but the shipper needs to bear the full logistics agency charges, including ocean freight and insurance premium. For extra charges such as reallocation fee and detention fee caused by abnormal situations like rolled container and overbooking, responsibility should be clarified: If it is caused by the freight forwarder's booking error, it shall be borne by the freight forwarder; If it is caused by the shipping company, the shipper can negotiate with the freight forwarder to claim from the shipping company, or let the responsible party bear it as contracted. In addition, in the link of bill of lading endorsement, if title transfer fails due to the freight forwarder's delayed endorsement, the loss shall be borne by the freight forwarder. **status:** suggested **Author:** Linda Gao **Date:** 2026-08-08 ### Answer 4 From the tax perspective, the bearer of freight forwarding charges affects VAT deduction and export tax refund: If the shipper bears the freight forwarding charges, he can obtain a special VAT invoice for input tax deduction, and relevant charges can be included in the cost of export goods, affecting the calculation of export tax refund; If the buyer bears the charges, the shipper cannot obtain the corresponding invoice and cannot deduct input tax. It should be noted that under the VAT deferral policy, if CIF terms are adopted, the VAT included in the freight forwarding charges borne by the shipper can be applied for deferral, reducing capital occupation cost; If FOB terms are adopted, the shipper can only deduct input tax of agency charges at the port of departure. In addition, in cross-border related party transactions, the pricing of freight forwarding charges needs to comply with the arm's length principle, to avoid tax adjustment caused by unreasonable pricing. **status:** suggested **Author:** Daniel Xu **Date:** 2026-08-07 ### Answer 5 From the perspective of foreign exchange payment and collection compliance, the payment of freight forwarding charges needs to comply with foreign exchange management regulations: If the shipper bears the charges, he needs to pay with own foreign exchange or purchased foreign exchange, and truthfully declare in the foreign exchange monitoring system; If the buyer bears the charges, the shipper needs to mark "freight collect" on the customs declaration, to avoid compliance risks caused by inconsistency between foreign exchange receipt/payment and customs declaration information. It should be noted that if CIPS is adopted for cross-border RMB payment, it is necessary to confirm that the freight forwarder has RMB settlement qualification, and retain payment vouchers for inspection; If payment is made through an offshore account, it needs to comply with offshore account usage regulations, to avoid being investigated by the foreign exchange bureau due to abnormal capital flow. In addition, SWIFT messages must accurately mark the nature of the charge, to avoid being intercepted by the bank or triggering compliance review. **status:** suggested **Author:** Grace Wang **Date:** 2026-08-07 ### Answer 6 From the legal perspective, the bearing of freight forwarding charges needs to be clearly agreed through contracts: The specific version of the trade term (such as INCOTERMS®2020) should be clearly specified in the trade contract, to avoid disputes caused by different versions of terms; In the freight forwarding contract, the name, amount, bearer and payment node of each charge should be listed one by one, avoid vague expressions such as "all charges" and "relevant charges". If a charge dispute occurs, you can protect your rights according to the agreement in the trade contract and freight forwarding contract; If the freight forwarder violates the contract and requires a non-responsible party to bear the charge, you can complain to the industry association or claim through legal channels. In addition, attention should be paid to the application of force majeure clauses, if extra charges are incurred due to force majeure, the responsibility shall be allocated according to the contract agreement. **status:** suggested **Author:** Michael Zhang **Date:** 2026-08-07 ### Answer 7 From the perspective of on-site customs inspection, the bearing of inspection service fee, unstuffing fee and other charges of the freight forwarder needs to be determined based on the reason for inspection: If the inspection is triggered by inconsistent documents or false declaration provided by the shipper, relevant charges shall be borne by the shipper; If the inspection is triggered by the freight forwarder's false declaration or operational error, the charges shall be borne by the freight forwarder; If it is random inspection by customs, the bearing of charges follows trade terms -- Under FOB terms, the inspection fee at the port of departure is borne by the shipper; Under CIF terms, the inspection fee at the port of departure is borne by the shipper, and the inspection fee at the destination port is borne by the buyer. It should be noted that if goods are damaged due to improper operation of the freight forwarder during inspection, the freight forwarder shall bear compensation liability; If goods are delayed due to customs inspection, the incurred demurrage shall be allocated based on the responsible party. **status:** suggested **Author:** Eric Zhou **Date:** 2026-08-07 ### Answer 8 From the perspective of special cargo packaging, the bearing of packaging service fee, reinforcement fee and other charges of the freight forwarder needs to follow trade terms: Under FOB terms, the shipper shall bear the packaging agency fee at the port of departure, because packaging is a necessary preparation before loading; Under CIF terms, the shipper also needs to bear the full packaging agency fee. It should be noted that if the packaging scheme provided by the freight forwarder does not meet UN dangerous goods packaging standards, leading to goods detention at customs or rectification charges, the freight forwarder shall bear the responsibility; If improper packaging is caused by the shipper's failure to provide accurate cargo characteristic information, the incurred charges shall be borne by the shipper. In addition, special reinforcement charges such as moisture-proof and shock-proof shall clearly specify the bearer in the freight forwarding contract to avoid disputes. **status:** suggested **Author:** Cindy Chen **Date:** 2026-08-07 ### Answer 9 From the perspective of export tax refund audit, the bearer of freight forwarding charges needs to meet the "consistency of four flows" requirement: that is, consistency of goods flow, capital flow, invoice flow and contract flow. If the shipper bears the charges, he needs to obtain the special VAT invoice issued by the freight forwarder under the shipper's name, and the capital is paid from the shipper's account to the freight forwarder, otherwise it cannot be used for export tax refund declaration. It should be noted that if the freight forwarder issues separate invoices for split charges, it is necessary to ensure that all invoice content matches the actual charges, to avoid tax correspondence audit caused by inconsistent invoices; If prepayment is adopted, retain prepayment vouchers and the buyer's repayment vouchers to ensure clear capital flow. In addition, for charges declared across months, they need to be included in export goods cost within the specified period, to avoid affecting tax refund timeliness. **status:** suggested **Author:** Andy Guo **Date:** 2026-08-07 ### Answer 10 From the perspective of supply chain planning, the bearer of freight forwarding charges needs to be combined with overall supply chain cost optimization: Under FOB terms, the shipper only bears the agency fee at the port of departure, which can reduce own capital occupation, but needs to coordinate with the buyer-designated freight forwarder, which may incur communication costs; Under CIF terms, the shipper can control the whole logistics link, select a better freight forwarder and transportation plan, reduce overall supply chain cost, but needs to bear more charges and risks. It should be noted that cost can be optimized through trade term conversion, for example, converting FOB terms to CIF terms, obtaining more favorable freight rates through bulk booking, while clarifying the bearer of freight forwarding charges; In addition, you can establish a cost actuarial model to compare total charges under different trade terms and select the optimal solution. **status:** suggested **Author:** Kevin Lin **Date:** 2026-08-07 ## Related Categories - [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-agency/) - [Export Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-agency/) - [Export Tax Rebate Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-tax-rebate/) - [Customs Declaration Q&A](https://www.sh-zhongshen.com/en/qa/cat-customs-declaration/) - [Forex Settlement Q&A](https://www.sh-zhongshen.com/en/qa/cat-forex-settlement/) - [Entrepôt Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/) - [General Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-general-trade/) ## Related Resources - [Trade Services](https://www.sh-zhongshen.com/en/services/) - [Trade Cases](https://www.sh-zhongshen.com/en/cases/) - [Trade Wiki](https://www.sh-zhongshen.com/en/wiki/) - [Trade Class](https://www.sh-zhongshen.com/en/guide/) - [Global Trade Services](https://www.sh-zhongshen.com/en/country/) ## Structured Data ```json [ { "@context": "https://schema.org", "@type": "QAPage", "inLanguage":"en", "isPartOf": { "@id":"https://www.sh-zhongshen.com/en/#website" }, "publisher":{ "@id":"https://www.sh-zhongshen.com/en/#organization" }, "mainEntity": { "@type": "Question", "name": "What Trade Terms Should Be Adopted to Confirm the Bearer of Export Freight Forwarding Charges?", "text": "I am the head of a small micro-enterprise focusing on home goods export based in Shanghai. I signed an FOB Shanghai order with a German client last month, and was originally convinced that the freight forwarding charge should be borne by the foreign client. But recently the freight forwarder has been repeatedly urging me for payment, claiming that the default industry practice is prepayment by the shipper. Now the goods have already been warehoused waiting for loading, the port cutoff is approaching, yet the charge dispute is still unresolved. I am extremely worried that unresolved charge will lead to goods detention at port, incur detention charges and even affect customs clearance. Besides, I had a CIF Hamburg order before, the freight forwarder asked me for full upfront payment of the agency charge. I am worried that I will have no recourse if the freight forwarder makes operational mistakes after payment, and I want to get a clear answer on who exactly should pay for export freight forwarding charges under different trade terms, and how to clarify responsibilities via contracts to avoid future disputes?", "answerCount": 10, "upvoteCount": 6, "datePublished": "2026-08-07T23:04:25Z", "dateModified": "2026-08-07T23:08:53Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "First，we need to clarify a common industry misconception: many freight forwarders ask shippers to prepay freight forwarding charges under FOB terms in the name of "industry default"，but they actually confuse the concepts of "prepayment" and "bearing" -- Under FOB terms，upstream charges such as booking and inland transportation arranged by the freight forwarder are borne by the shipper，but ocean freight and destination port agency charges are borne by the buyer. Requiring the shipper to bear all charges is misleading and non-compliant. Unclear charge allocation will trigger a series of negative consequences: for example，the freight forwarder withholds the bill of lading due to unpaid charges，the goods cannot clear customs after arriving at port，incurs demurrage and detention charges，and even gets auctioned by the customs，delayed delivery caused by this will also lead to claims from foreign clients，damage long-term cooperation trust，and even result in loss of core clients. Effective risk prevention measures: First，clarify responsibilities strictly in accordance with INCOTERMS®2020 trade terms. Under FOB terms，the shipper is only responsible for agency charges before loading at the port of departure，under CIF terms，the shipper needs to bear the full cost of freight forwarding services. Second，clearly specify detailed charge allocation and payment nodes in the freight forwarding contract ，and avoid vague expressions such as "relevant charges" and "all charges". Practical risk mitigation tips: You can ask the freight forwarder to provide an itemized charge list，and adopt phased payment ，for example，pay 30% before booking，pay 70% against the copy of bill of lading after loading. Meanwhile，retain all charge vouchers，communication records and contract documents，which can be used as core evidence for rights protection when a dispute occurs.", "upvoteCount": 6, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#acceptedAnswer", "datePublished": "2026-08-08T01:03:52Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "In the customs declaration环节, the bearer of customs declaration fee, inspection declaration fee and other charges charged by the freight forwarder should match the trade terms: Under FOB terms, the shipper shall bear the customs declaration and inspection agency charges at the port of departure, as this is a necessary procedure before loading; Under CIF/CFR terms, the shipper also shall bear the customs declaration agency charge at the port of departure, and the customs clearance agency charge at the destination port is borne by the buyer. It should be noted that for amendment fee and deletion If it is caused by incorrect documents provided by the shipper, it shall be borne by the shipper. In addition, for late declaration fee incurred during customs price verification, if it is caused by the freight forwarder's failure to declare on time, the freight forwarder shall bear the responsibility, otherwise it shall be borne by the shipper.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-2", "datePublished": "2026-08-08T00:40:55Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } , { "@type": "Answer", "text": "From the perspective of the full logistics chain, the bearing of freight forwarding charges should be combined with the title transfer node: Under FOB terms, the title of goods transfers to the buyer after loading, therefore agency charges such as inland transportation, booking and port miscellaneous charges before loading are borne by the shipper, ocean freight and destination port agency charges after loading are borne by the buyer; Under CIF terms, the title of goods also transfers after loading, but the shipper needs to bear the full logistics agency charges, including ocean freight and insurance premium. For extra charges such as reallocation fee and detention fee caused by abnormal situations like rolled container and overbooking, responsibility should be clarified: If it is caused by the freight forwarder's booking error, it shall be borne by the freight forwarder; If it is caused by the shipping company, the shipper can negotiate with the freight forwarder to claim from the shipping company, or let the responsible party bear it as contracted. In addition, in the link of bill of lading endorsement, if title transfer fails due to the freight forwarder's delayed endorsement, the loss shall be borne by the freight forwarder.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-3", "datePublished": "2026-08-08T00:10:26Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "From the tax perspective, the bearer of freight forwarding charges affects VAT deduction and export tax refund: If the shipper bears the freight forwarding charges, he can obtain a special VAT invoice for input tax deduction, and relevant charges can be included in the cost of export goods, affecting the calculation of export tax refund; If the buyer bears the charges, the shipper cannot obtain the corresponding invoice and cannot deduct input tax. It should be noted that under the VAT deferral policy, if CIF terms are adopted, the VAT included in the freight forwarding charges borne by the shipper can be applied for deferral, reducing capital occupation cost; If FOB terms are adopted, the shipper can only deduct input tax of agency charges at the port of departure. In addition, in cross-border related party transactions, the pricing of freight forwarding charges needs to comply with the arm's length principle, to avoid tax adjustment caused by unreasonable pricing.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-4", "datePublished": "2026-08-07T23:55:36Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } , { "@type": "Answer", "text": "From the perspective of foreign exchange payment and collection compliance, the payment of freight forwarding charges needs to comply with foreign exchange management regulations: If the shipper bears the charges, he needs to pay with own foreign exchange or purchased foreign exchange, and truthfully declare in the foreign exchange monitoring system; If the buyer bears the charges, the shipper needs to mark "freight collect" on the customs declaration, to avoid compliance risks caused by inconsistency between foreign exchange receipt/payment and customs declaration information. It should be noted that if CIPS is adopted for cross-border RMB payment, it is necessary to confirm that the freight forwarder has RMB settlement qualification, and retain payment vouchers for inspection; If payment is made through an offshore account, it needs to comply with offshore account usage regulations, to avoid being investigated by the foreign exchange bureau due to abnormal capital flow. In addition, SWIFT messages must accurately mark the nature of the charge, to avoid being intercepted by the bank or triggering compliance review.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-5", "datePublished": "2026-08-07T23:45:00Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "From the legal perspective, the bearing of freight forwarding charges needs to be clearly agreed through contracts: The specific version of the trade term (such as INCOTERMS®2020) should be clearly specified in the trade contract, to avoid disputes caused by different versions of terms; In the freight forwarding contract, the name, amount, bearer and payment node of each charge should be listed one by one, avoid vague expressions such as "all charges" and "relevant charges". If a charge dispute occurs, you can protect your rights according to the agreement in the trade contract and freight forwarding contract; If the freight forwarder violates the contract and requires a non-responsible party to bear the charge, you can complain to the industry association or claim through legal channels. In addition, attention should be paid to the application of force majeure clauses, if extra charges are incurred due to force majeure, the responsibility shall be allocated according to the contract agreement.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-6", "datePublished": "2026-08-07T23:44:37Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "From the perspective of on-site customs inspection, the bearing of inspection service fee, unstuffing fee and other charges of the freight forwarder needs to be determined based on the reason for inspection: If the inspection is triggered by inconsistent documents or false declaration provided by the shipper, relevant charges shall be borne by the shipper; If the inspection is triggered by the freight forwarder's false declaration or operational error, the charges shall be borne by the freight forwarder; If it is random inspection by customs, the bearing of charges follows trade terms -- Under FOB terms, the inspection fee at the port of departure is borne by the shipper; Under CIF terms, the inspection fee at the port of departure is borne by the shipper, and the inspection fee at the destination port is borne by the buyer. It should be noted that if goods are damaged due to improper operation of the freight forwarder during inspection, the freight forwarder shall bear compensation liability; If goods are delayed due to customs inspection, the incurred demurrage shall be allocated based on the responsible party.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-7", "datePublished": "2026-08-07T23:34:05Z", "author": {"@type": "Person","name": "Eric Zhou","url": "https://www.sh-zhongshen.com/en/team/eric-zhou/"} } , { "@type": "Answer", "text": "From the perspective of special cargo packaging, the bearing of packaging service fee, reinforcement fee and other charges of the freight forwarder needs to follow trade terms: Under FOB terms, the shipper shall bear the packaging agency fee at the port of departure, because packaging is a necessary preparation before loading; Under CIF terms, the shipper also needs to bear the full packaging agency fee. It should be noted that if the packaging scheme provided by the freight forwarder does not meet UN dangerous goods packaging standards, leading to goods detention at customs or rectification charges, the freight forwarder shall bear the responsibility; If improper packaging is caused by the shipper's failure to provide accurate cargo characteristic information, the incurred charges shall be borne by the shipper. In addition, special reinforcement charges such as moisture-proof and shock-proof shall clearly specify the bearer in the freight forwarding contract to avoid disputes.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-8", "datePublished": "2026-08-07T23:26:28Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } , { "@type": "Answer", "text": "From the perspective of export tax refund audit, the bearer of freight forwarding charges needs to meet the "consistency of four flows" requirement: that is, consistency of goods flow, capital flow, invoice flow and contract flow. If the shipper bears the charges, he needs to obtain the special VAT invoice issued by the freight forwarder under the shipper's name, and the capital is paid from the shipper's account to the freight forwarder, otherwise it cannot be used for export tax refund declaration. It should be noted that if the freight forwarder issues separate invoices for split charges, it is necessary to ensure that all invoice content matches the actual charges, to avoid tax correspondence audit caused by inconsistent invoices; If prepayment is adopted, retain prepayment vouchers and the buyer's repayment vouchers to ensure clear capital flow. In addition, for charges declared across months, they need to be included in export goods cost within the specified period, to avoid affecting tax refund timeliness.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-9", "datePublished": "2026-08-07T23:13:43Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "From the perspective of supply chain planning, the bearer of freight forwarding charges needs to be combined with overall supply chain cost optimization: Under FOB terms, the shipper only bears the agency fee at the port of departure, which can reduce own capital occupation, but needs to coordinate with the buyer-designated freight forwarder, which may incur communication costs; Under CIF terms, the shipper can control the whole logistics link, select a better freight forwarder and transportation plan, reduce overall supply chain cost, but needs to bear more charges and risks. It should be noted that cost can be optimized through trade term conversion, for example, converting FOB terms to CIF terms, obtaining more favorable freight rates through bulk booking, while clarifying the bearer of freight forwarding charges; In addition, you can establish a cost actuarial model to compare total charges under different trade terms and select the optimal solution.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/who-pays-for-export-freight-forwarding-fees-based-on-trade-terms.html#suggestedAnswer-10", "datePublished": "2026-08-07T23:08:53Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } ] } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ {"@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.sh-zhongshen.com/en/"},{"@type": "ListItem", "position": 2, "name": "Q&A", "item": "https://www.sh-zhongshen.com/en/qa/"},{"@type": "ListItem", "position": 3, "name": "Freight Forwarding Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-freight-forwarding/"} ,{"@type": "ListItem", "position": 4, "name": "What Trade Terms Should Be Adopted to Confirm the Bearer of Export Freight Forwarding Charges?"} ] } ] ```