For companies or individuals who do not have the right to import or export and want to enter the international market, agency export is undoubtedly an efficient and convenient option. This model not only simplifies complex export processes, but also through professional services of agency companies, helps enterprises to complete all aspects from customs clearance to tax refunds. Whether small enterprises, individual or companies with no export experience, agency exports are the ideal way to global trade.
Below are the detailed processes and attention points for agency exports:
A. Scope of Application of Export Agent
- Companies or individuals without import and export rights: Including some small, individual business households, or individual entrepreneurs.
- Companies with lack of experience: Even if there is a right to import and export, but due to the lack of international trade experience, it can also be chosen to represent exports.
- General taxpayer companies and distributors: Hope to obtainExport tax refundThe business can be achieved through agency exports.
Process of Export Agent
- Finding a suitable foreign trade agency:
(1) Criteria of SelectionThe qualifications, credibility, service ability of the agency.
(2) Signed AgreementTo clarify the rights and obligations of both parties, including the content of services, agent fees, methods of settlement, etc. - Foreign trade agencies provide full service:
(1) Customs ClearanceThe agency is responsible for declaring the export of goods, providing relevant customs reporting documents, and handling customs reporting procedures.
(2) Collecting servicesThe agency collects money from foreign customers through its foreign exchange accounts.
(3) Tax Repayment ServicesThe agency shall apply for export tax refund on behalf of the company to assist the enterprise in completing the tax refund procedure. - Factories provide value added tax invoices:
(1) Requirements for invoicesThe factory must provide the agency with the required value added tax special invoices, and the content of the invoice must be consistent with the actual export goods.
(2) Purpose of invoices.The agency will apply for export tax refund to the tax authorities on the basis of these invoices. - Transportation and logistics arrangements:
(1) The logistics choice.The agency will usually assist in choosing the right logistics mode, including sea, air, land and so on.
(2) Settlement of costsThe agency shall pay the factory goods in accordance with the agreement and deduct related costs such as agent fees, shipping fees and insurance fees. - Return of funds:
(1) The settlement cycleAfter receiving foreign exchange and completing the tax refund, the agency pays the remaining amount to the factory or individual.
(2) Settlement MethodsYou can choose to settle in RMB or foreign currency, specifically according to the agreement.
Advantages of Export Agent
- Simplifying the process:The agency has a professional operating team where or individuals do not have to deal with complex international trade processes, saving time and effort.
- Avoiding the risk: Foreign trade agencies generally have a wealth of international trade experience, and can effectively avoid some common international trade risks, such as legal compliance, tax issues, etc.
- Reimbursement of export tax: Through agency exports, you can legally enjoy export tax refund policies, reduce the tax burden of enterprises, and increase export profits.
- Reduction of costs:The agent fees are usually relatively low, generally charging 1% to 3% of the value of the goods, avoiding higher costs that may arise from operating on your own.
Observations of Export Agent
- Choose a reputable agency:The agency’s qualifications, quality of service and credibility are crucial. Choosing a reliable agency can avoid subsequent disputes and losses.
- Explanatory Agreement:When signing an agency agreement, it is necessary to clarify the rights, obligations, fee standards and liabilities of both parties to protect their rights and interests.
- Maintain communication with the agency:Thro the export process, or individuals should maintain good communication with the agency, and understand the export progress and related costs in a timely manner.
- Regulations of the exporting country: While the agency handles most of the transactions, it is necessary as a carrier to understand the basic regulations and requirements of the target market to ensure that the exported goods meet the standards and requirements of the destination country.
By choosing a reputable agency, you can focus on expanding your products and markets while handing out your arduous exports to a professional team. Hopefully this article will help you understand the advantages and operational steps of agency exports to make your business stand out in the global market. If you need further support or have any questions, our team will provide you with professional advice and service at all times.