Commission Included Price refers to a price quoted by the seller in international trade that already includes commission for an intermediary or agent. Commission is usually expressed as a percentage, e.g., CIFC5% means the CIF price includes 5% commission. Usage scenario: when a transaction is facilitated through an intermediary, the seller must clearly quote a commission-included price so the intermediary can receive remuneration. Notes: the commission base may be the invoice amount or FOB price and must be specified in the contract; commission-included price is the opposite of Net Price, which does not include commission; if a quote does not state that commission is included, it is usually regarded as a net price. Unlike a discount, commission is remuneration to an intermediary, while a discount is a price concession to the buyer. When calculating a commission-included price, the net price is usually divided by (1 - commission rate), rather than simply adding the commission, to avoid double counting. Foreign trade practitioners should clearly distinguish between commission-included price and net price to avoid settlement disputes.
📝 Examples
1. Our quotation is USD 2,000 per metric ton CIFC5% New York, of which the 5% commission will be paid to the intermediary after receipt of payment. (Note: CIFC5% is a commission-included price, and the commission is 2,000 × 5% = USD 100 per metric ton.)
2. Please confirm whether the commission-included price accepted by your side includes a 3% commission, so that we can calculate the net price and arrange payment. (Note: clarifying the commission-included price at the inquiry stage helps avoid subsequent commission disputes.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner