Can agency export be considered as an exporter? Come and get the answers!
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I would like to know whether agency export can be considered as an exporter in international trade. Our company has a batch of goods and plans to ask an agency company to help with the export. The agency company undertakes many tasks in the entire export process, such as customs declaration and booking. But the goods belong to us. I'm really confused. In the strict sense, can the agency company for agency export be considered as an exporter? I hope some professionals can help answer this question. Thank you!
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In international trade, the agency company for agency export is not an exporter in the strict sense. An exporter usually refers to the party that owns the ownership of the goods and bears the main responsibilities and risks of the export sales of the goods. Although the agency company assists in handling tasks such as customs declaration and booking, it is only entrusted by the principal (i.e., the company that actually owns the goods) to handle the export business in the name of the principal or its own name. It does not have the ownership of the goods itself, nor does it bear the main risks of the goods sales, such as the risks of fluctuations in the market price of the goods and the buyer's refusal to pay the payment. These risks are still borne by the principal. Therefore, as the owner of the goods, your company is the exporter in the true sense, and the agency company is just a role that provides services to assist with the export.
However, in some documents or business scenarios, due to the agency company's handling of many affairs, it may be misrecognized or vaguely expressed as an exporter. But in terms of the legal and trade essence, the two concepts are different.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
No, agency export mainly provides services. Agency companies like Zhongshitong do not have the ownership of the goods. An exporter must have the ownership of the goods.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It cannot be considered. An exporter should bear the sales risk, and an agency export company generally does not bear this risk, so agency export is not an exporter.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Agency export is not an exporter. The agency only helps with the process. An exporter should be mainly responsible for the entire export process of the goods.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
No. An exporter should be responsible for both the benefits and risks of the goods export. Obviously, an agency export company is not.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
From the definition, an exporter is the owner of the goods. Agency export is just handling the business on behalf of others, so of course it is not an exporter.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Agency export cannot be simply equated with an exporter. The agency mainly completes the export procedures as required by the principal, not the main role like an exporter.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It is not an exporter. The agency export company does not have the ownership of the goods and is not the main body that bears the main responsibilities of the export.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Definitely not. An exporter is the one who leads the export sales. Agency export is just auxiliary, and the difference is obvious.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Agency export is not an exporter because an exporter needs to have the ownership of the goods and the ability to bear the main risks, which an agency company does not have.