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What are the differences between agency and export? Come and help me solve my doubts!

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I recently plan to engage in foreign - related trade business and have learned that there are two methods: agency and export. However, I have always been confused about their differences. I would like to ask everyone, what are the specific differences between agency and export in terms of operation process, liability assumption, profit acquisition, etc.? I hope friends who know the business can explain it to me in detail so that I can make a more appropriate choice.

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Professional consultant answers

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

Agency export means that the principal and the entrusted party sign an agency export agreement. The entrusted party conducts export declaration, foreign exchange collection, etc. in its own name, while the actual ownership of the goods still belongs to the principal. In terms of the operation process, when it comes to agency export, the principal needs to provide detailed goods information, and the entrusted agent is responsible for a series of procedures such as customs declaration, inspection application, and foreign exchange collection and verification; while in self - managed export, the enterprise completely handles all processes by itself.

In terms of liability assumption, if there are problems in agency export, such as product quality disputes, the actual liability lies with the principal, and the agent only assumes the liability agreed in the agreement; the self - managed export enterprise is responsible for the whole process.

In terms of profit acquisition, the agent mainly earns agency fees; in self - managed export, the enterprise directly obtains all the profits from the exported goods. In short, the two have their own characteristics and need to be selected according to one's own situation.

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

Customer service consultantConsult

When it comes to agency export, the operating unit on the customs declaration form is the agency company, and the consignor is the principal. While in self - managed export, both the operating unit and the consignor are the enterprise itself. This will have different production requirements in terms of customs clearance documents, etc.

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

Senior foreign trade managerConsult

From the perspective of funds, after the foreign exchange is collected in agency export, the agent deducts agency fees and other expenses and then transfers the money to the principal; in self - managed export, the foreign exchange collected directly enters the enterprise's account, and the capital flow and control rights are different.

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

Supply chain optimization expertConsult

Agency export is more suitable for enterprises that are new to foreign trade and lack resources, as they can draw on the experience of the agent; self - managed export is suitable for enterprises with a mature foreign trade team and resources, which can better control the overall situation.

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

Settlement and payment expertConsult

In the tax refund link, in agency export, the principal applies for tax refund; in self - managed export, the enterprise applies for tax refund by itself, and there will be differences in operation details.

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

Foreign trade tax refund consultantConsult

During agency export, many tasks such as communicating and negotiating with foreign merchants are still carried out by the principal, and the agent is mainly responsible for the execution of the foreign trade process; the self - managed export enterprise is fully responsible for business negotiations and other matters.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

From the perspective of risk, in agency export, part of the risks are transferred to the agent. For example, the agent will assist in controlling the foreign exchange collection risk; the self - managed export enterprise needs to face various risks alone.

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

Document expertConsult

If it is agency export, the enterprise's brand promotion may be limited because foreign merchants have more contact with the agent; self - managed export is conducive to the enterprise creating its own brand image.

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

Senior customs declaration consultantConsult

In terms of qualification requirements, the principal in agency export does not necessarily need to have the right to import and export, while the agent must have it; the self - managed export enterprise itself must have relevant qualifications such as the right to import and export.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

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