Mixed billing systemFixed fee + percentage of cargo value (e.g., $5,000 + 0.3% of cargo value)
The art of negotiating payment terms
A heavy machinery import case shows that using a three-phase payment structure can reduce capital risk by 35%:
Pay 30% upon contract signing as service initiation deposit
Pay 50% core service fee upon bill of lading release
Pay 20% quality guarantee deposit after equipment acceptance
Special attention requiredCross-border payment terms, its recommended to specify conversion at Bank of Chinas spot selling rate on arrival date to avoid exchange rate fluctuation losses.
Risk-avoidance design in contract clauses
Service scope specified down to HS code level
Clear port demurrage sharing ratio (recommend agents share not exceeding 20%)
Prefer China International Economic and Trade Arbitration Commission for dispute resolution
Set document acceptance time limit for L/C payments (recommend no more than 5 working days)
Industry benchmark data reference
2025 agency commission ranges for major equipment categories:
Precision instruments: 0.8%-1.5% (including ATA carnet processing)
Complete sets of equipment: 0.6%-1.2% (including partial shipment coordination)
Used equipment: 1.2%-2% (including technical parameter compliance modification)
Notably, European and American supplier projects typically include 0.3%-0.5% manufacturer service fees, which should be clarified during initial negotiations.