There is actually a 20% profit difference between consignment export and agency export!

"Mr. Zhang was overjoyed when he recently received an overseas order, but he was in a dilemma when choosing the export method - consignment export and agency export. Seemingly only one - word difference, but in fact, it may lead to a 20% difference in profits!" Today, let's uncover the true faces of these two modes.

Consignment export is a typical civil consignment relationship, which is equivalent to "outsourcing" your export affairs to a service provider. The ownership of the goods always remains in your hands, and the service provider only charges a fixed service fee. While agency export is that a professional foreign - trade company declares exports in its own name, and legally, they are the export entity.

• Risk - bearing: In consignment export, you need to bear the foreign exchange collection risk by yourself, while in agency export, the agency party undertakes it.
• Tax - refund operation: In consignment export, you need to handle the tax refund by yourself, while in agency export, you can enjoy "buy - single tax refund".
• Capital occupation: Agency export usually requires advance payment or letter - of - credit guarantee.

Ms. Li's case is very representative: Her handicraft company has an annual export volume of 3 million US dollars and finally chose the consignment - export mode. Because:

• It has the right to independent import and export.
• Its financial team can handle tax refunds independently.
• It has stable overseas customer relationships.

• He has no import - export qualifications.
• He lacks foreign - trade professionals.
• He needs financing services.

On the surface, the charge for agency export is higher (about 3 - 5% of the value of goods), but actually, you need to calculate:

• The customs - declaration error cost of consignment export
• The interest of capital occupation
• The risk of tax - refund late - payment fees

This is not a simple service choice, but the starting line of an enterprise's foreign - trade strategy. Do you value risk control or profit maximization more? Share your foreign - trade stories in the comment area and get customized plan suggestions.