In international trade, we often encounter the situation of paying commission to foreign countries. For example, we need to pay commission to agents or middlemen when we entrust foreign sales agents or directly promote new products or develop new markets through middlemen. The following are some views on the related issues in the process of commission payment for the reference of peers. First, the base of calculating the commission takes FOB and CIF prices as examples. In the case of CIF contracts, a shrewd salesman should use FOB price as the base for calculating the commission paid to the other party. The reason is that according to the provisions of INCOTERMS2000, the risk division point of goods between buyers and sellers under CIF trade terms is on the ship's side of the loading port, so the seller's subsequent transportation and insurance are for the buyer's benefit, that is, the transportation and insurance costs in CIF price are not the seller's vested interests, but are paid to the shipping company and the insurance company respectively for the buyer's benefit, so the seller should not withdraw the commission for the transportation and insurance costs to the buyer, but should deduct the transportation and insurance costs from the CIF price and take the goods as FOB. Second, the method of calculating commission is well known to all. In all textbooks on international trade practice, the formula for calculating commission is: commission price = net price+commission commission = commission price x commission rate = commission price x (1-commission rate). According to the above formula, the calculation method of commission amount can evolve into: commission = (net price+commission) x commission rate = net price x commission rate. In fact, there is another very similar situation in the operation of foreign trade enterprises. That is, the opening of VAT invoices and the calculation method of tax refund amount: invoice amount (including tax price) = principal+tax = principal x VAT rate (17%) and principal = invoice amount /( 1+17%). Therefore, the formula of the State Taxation Bureau in calculating the tax refund amount returned to export enterprises is: tax refund amount = principal x. (1+17%)x tax rebate rate instead of "invoice amount x tax rebate rate" directly, because the invoice amount includes tax, and the tax itself cannot be refunded. In the same way, the author thinks it is more appropriate to use the following formula when calculating the commission price and commission: commission price = net price+commission commission = net price x commission rate commission price = net price x (1+commission rate) If the commission price is known, Then the calculation method of commission is (that is, the formula for foreign trade enterprises to calculate the commission paid to foreign commission dealers): commission amount = commission price /( 1+commission rate) x commission rate. For example, in the actual transaction process, we quote a 3% commission price of a product as 10,000 US dollars. If the commission paid to foreign investors is calculated according to the formula in the book, it is: commission payable. $000 x 3% = 300 if calculated by the second formula, it is: commission payable = 10,000/(1+3%) x 3% = 291.26. By comparison, it can be seen that the commission payable of the former is $8.74 more than that of the latter, and the reason is that. Third, the time to pay the commission. On this issue, our foreign trade enterprises must insist on paying the commission to the middlemen after the sales contract is fulfilled. The purpose of adhering to this practice is to integrate the interests of the middleman with the performance of the contract, so that the middleman will strive to urge the parties to the transaction to perform better and get the part of the interests he wants. Especially when there are misunderstandings and disputes between buyers and sellers in the first transaction, the communication and mediation role of middlemen is particularly important. Imagine that the seller paid the commission to the middleman before receiving the buyer's full payment safely. When there is a problem in the performance of the contract, the middleman will be "lazy" because of the lack of corresponding incentives, and will not actively promote the smooth progress of the transaction.