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Do you know exactly what the differences are between agency and export?

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I've been quite interested in international trade recently and found that there are these two different operation methods of agency and export. But I'm not quite clear about where the specific differences between them lie. Is it different in the process or in the aspect of liability assumption? I hope those who are knowledgeable can explain it to me in detail. Where exactly are the differences between agency and export?

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Professional consultant answers

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

Settlement and payment expertConsult

The main differences between agency and export are as follows. Firstly, in terms of the operating entity, export generally refers to the enterprise itself directly engaging in the cross-border sales of goods or services; while agency means that the entrusting party entrusts an agency company to carry out relevant export business operations. In terms of the process, when an enterprise exports by itself, it needs to be fully responsible for a series of processes from finding customers, signing contracts to customs declaration, transportation, etc.; when it comes to agency export, the entrusting party is responsible for core businesses such as finding customers and signing contracts, while the agency company mainly deals with matters such as customs declaration, inspection application, and freight transportation. In terms of liability assumption, when an enterprise exports by itself, it assumes all risks and responsibilities; in agency export, the agency company assumes corresponding responsibilities as agreed, and the entrusting party assumes the main responsibilities, such as product quality problems. In terms of costs, the enterprise needs to bear all the costs of self-export, while for agency export, it needs to pay agency fees to the agency company.

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

Document expertConsult

From the perspective of qualifications, when an enterprise exports by itself, it usually needs to have complete import and export qualifications, such as customs record-filing, commodity inspection record-filing, etc.; when it comes to agency export, even if the entrusting party does not have complete qualifications, it can complete the export with the help of the qualifications of the agency company.

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

Market development consultantConsult

From the perspective of cash flow, when an enterprise exports by itself, it directly receives and settles foreign exchange; when it comes to agency export, sometimes the payment for goods will first arrive in the account of the agency company and then be transferred to the entrusting party by the agency company, which may involve issues of capital turnover and security.

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

Compliance and risk managerConsult

From the perspective of profit distribution, when an enterprise exports by itself, all the profits belong to itself; when it comes to agency export, the agency company charges agency fees, and the entrusting party obtains the profits after deducting the agency fees.

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

Senior foreign trade managerConsult

From the perspective of flexibility, when an enterprise exports by itself, it has strong autonomy and can operate according to its own plans; when it comes to agency export, it needs to follow the agreements in the agency contract, and its flexibility is slightly weaker.

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

Foreign trade tax refund consultantConsult

From the perspective of professionalism, when an enterprise exports by itself, it requires itself to have a professional foreign trade team; when it comes to agency export, it can make use of the professional resources and experience of the agency company.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

In terms of risk dispersion, when an enterprise exports by itself, the risks are concentrated on the enterprise; when it comes to agency export, some risks can be dispersed to the agency company through the agency contract.

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

Supply chain optimization expertConsult

Self-export is convenient for the enterprise to directly control customer resources; when it comes to agency export, there may be a certain gap in the communication of customer information.

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

International logistics consultantConsult

Self-export is beneficial for the enterprise to build its own brand image; when it comes to agency export, brand promotion may mainly rely on the resources of the agency company.

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