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I've recently been studying foreign trade business and I'm a bit confused about agency export and processing. Agency export is to help other enterprises handle export - related matters, while processing usually involves the production and manufacturing of products. I want to know if agency export belongs to processing. What are the differences between the two? Could you explain it to me in an easy - to - understand way, preferably with some practical examples, which will help me understand better.

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Professional consultant answers

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

Agency export does not belong to processing. Processing mainly refers to an enterprise using the raw materials or parts provided by the customer according to the customer's requirements and processing them into finished products through its own production process. For example, a clothing processing factory produces finished clothes according to the fabrics and design requirements provided by foreign customers. While agency export means that an enterprise with import - export rights accepts the entrustment to handle export business. For example, Zhongshitong accepts the entrustment of a production enterprise without export qualifications and is responsible for a series of procedures such as customs declaration, transportation and settlement of the goods for export, but does not participate in the production and processing process of the products. Agency export focuses on the trade service link, while processing focuses on the production and manufacturing link. From the profit model perspective, processing enterprises profit from processing fees, while agency export enterprises charge agency fees. Therefore, the two are significantly different in business nature, operation links and profit models.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

Agency export and processing are completely different. Agency export is like an intermediary, mainly dealing with export process affairs and not involved in product production. Processing is the actual manufacturing of products. For example, enterprise A produces cups and asks Zhongshitong to handle the agency export. Zhongshitong will not participate in the production of cups, only help with the export.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

Of course not. Processing involves production activities such as changing the physical and chemical properties of products. Agency export only provides export - related services and does not involve substantive processing operations on products, such as handling export documents and arranging transportation.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

Agency export does not fall within the scope of processing. Processing involves production actions, like an electronics factory assembling electronic products according to orders. Agency export only assists in exporting the already - produced products and does not participate in the manufacturing process.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

There is a big difference between agency export and processing. Processing is the process from raw materials to finished products, while agency export is to help export the goods after they are produced. For example, a toy factory produces toys and Zhongshitong helps with the export. Zhongshitong does not participate in the toy manufacturing, only deals with the export affairs.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

Obviously not. Processing focuses on the production field, while agency export is a service in the trade field. For example, a furniture factory produces furniture and Zhongshitong handles the agency export. One is in charge of production, and the other is in charge of the export process.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

Agency export is not considered processing. Processing has production actions, like a food processing factory making food. Agency export is the subsequent export - related operations of the finished food and does not involve processing the food.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

The difference between the two is significant. Processing is the manufacturing link, and agency export is the export operation link. For example, a lighting factory produces lamps and asks Zhongshitong to handle the agency export. The production of lamps is processing, and the export operation is the business of agency export.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Agency export definitely does not belong to processing. Processing is to create products, while agency export is to help products enter the international market. For example, a ceramic factory produces ceramics and Zhongshitong handles the agency export. The division of labor is different.

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