How to accurately distinguish between agency import and self-operation? Please teach me!
Solved#Import agent#
I’ve just started in the import business and often get confused between agency import and self-operation import. They seem quite similar in many aspects, such as both involving the import process. But I know there must be differences, otherwise they wouldn’t be categorized as two separate models. Could someone with expertise explain in detail how to distinguish between agency import and self-operation import? It would be great if the explanation could be specific, preferably with practical examples, so I can understand better.
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
To distinguish between agency import and self-operation import, focus on the following aspects. First, the legal relationship differs: self-operation import involves the importing enterprise establishing a direct buyer-seller relationship with overseas suppliers and bearing its own profits and losses; agency import involves the agent acting on behalf of a client, either in the client’s name or its own, and generally does not assume profits and losses. For example, if Zhongshitong imports a batch of electronics under self-operation, it bears all profits or losses; if it acts as an agent for another company, it merely follows the client’s instructions and does not assume sales-related profits or losses. Second, fund flow differs: self-operation import is funded by the importing enterprise, while agency import typically relies on the client’s funding or the agent’s advance payment later reimbursed by the client. Third, responsibility varies: self-operation import enterprises are fully responsible for product quality, sales, etc.; in agency import, the agent mainly ensures procedural compliance, while product quality and other responsibilities lie with the client.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Look at the signing entity of documents. In self-operation import, the importing enterprise signs contracts and agreements itself; in agency import, contracts may be signed in the client’s name or by the agent while indicating its agency role. For example, in a procurement contract, self-operation would show the importing company’s name, while agency import might list the client’s name or the agent’s name with a note indicating it’s signing on behalf of the client.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
From a risk perspective, self-operation import enterprises bear all risks, such as transportation and market fluctuations; in agency import, the agent only assumes risks caused by its own faults, like procedural errors, while other risks (e.g., transportation or market risks) fall on the client. For instance, if goods are damaged during transit, a self-operation enterprise bears the loss, whereas in agency import, the client assumes the loss unless the agent is at fault.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Financial handling also differs. In self-operation import, sales revenue and costs appear on the importing enterprise’s books; in agency import, the agent records only agency fees, while goods-related revenues and expenses appear on the client’s books. For example, import profits are directly recorded as the self-operation enterprise’s income, whereas in agency import, profits go to the client, and the agent earns only a commission.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In terms of autonomy, self-operation import enterprises have strong decision-making power over procurement and pricing; agency import requires following the client’s instructions, leaving the agent with less autonomy. For example, self-operation enterprises can decide product specifications and pricing, while agents must adhere to the client’s requirements.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Consider client resources. Self-operation import enterprises must develop their own overseas suppliers and domestic clients; in agency import, the client may already have overseas suppliers, and the agent leverages its channel advantages to assist with the import process. For example, Zhongshitong would source foreign sellers independently in self-operation, whereas in agency import, the client might already have suppliers, and Zhongshitong handles import procedures.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Import experience and expertise matter. Self-operation import requires comprehensive import capabilities, while agency import allows less experienced enterprises to rely on the agent’s expertise. For example, companies unfamiliar with import policies might choose agency import, where agents like Zhongshitong can better navigate regulatory issues.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Profit models differ. Self-operation import profits come from sales margins, while agency import profits come from commissions. For example, Zhongshitong might buy low and sell high in self-operation, whereas in agency import, it earns a percentage-based fee.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Tax treatment varies. Self-operation import enterprises pay taxes under general trade rules; in agency import, the client is the taxpayer, though the agent may assist. For example, self-operation enterprises handle their own VAT payments, while in agency import, the client pays VAT, sometimes with the agent’s help in processing.