Is agency export the same as consignment export? This article will take you to understand the differences
Solved#Other issues#
I've been researching foreign trade export-related businesses recently, and I'm a bit confused about these two modes: agency export and consignment export. I'd like to ask professionals, are agency export and consignment export the same? What are the differences between them in terms of operation process, liability assumption, cost settlement, etc.? If my company wants to choose one of these ways to export products, what factors should be emphasized? I hope to get a detailed answer. Thank you!
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Agency export and consignment export are not the same. From the perspective of the operation process, in agency export, the agent signs contracts with foreign merchants in its own name and handles export customs declaration and other procedures, while the consignor provides goods, etc.; when it comes to consignment export, the consignor needs to be responsible for key links such as signing contracts with foreign parties on its own, and the consignee is only responsible for handling export procedures.
In terms of liability assumption, in agency export, if the agent causes losses due to its own faults, it shall bear the liability; in consignment export, the main liability lies with the consignor. Regarding cost settlement, the agent in agency export generally charges an agency fee; in consignment export, if the consignee only handles procedures on behalf, it charges a handling fee.
When choosing, if the company lacks foreign trade experience and resources, agency export is a good choice; if the company is familiar with foreign trade and only needs to rely on others to handle procedures, consignment export is more appropriate.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Agency export and consignment export are not the same. The agent in agency export is deeply involved, taking care of everything from finding customers to customs declaration, while the consignor is like a backstage boss providing goods, etc. In consignment export, the consignor has to find customers and sign contracts on its own, and the consignee just helps with handling the export procedures, which is relatively simple.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In terms of operation, the agent in agency export is highly involved, taking care of things like negotiating with customers, signing contracts, and customs declaration; in consignment export, the consignor dominates the business, finding customers and signing contracts, and the consignee only handles the export process. Regarding liability, the agent in agency export has more operations and thus more liability, while in consignment export, it is mainly the consignor who bears the liability.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
There are differences in cost settlement. In agency export, the agency fee is charged based on the amount of goods or service items; in consignment export, the consignee charges a handling fee according to the items handled on behalf. Which one to choose depends on the company's situation. If you are not familiar with the business, you can choose agency export; if you have experience and want to save costs, you can consider consignment export.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
They are not the same. The agent in agency export handles export affairs in its own name and has more control over the process; in consignment export, the consignor has to handle foreign affairs on its own, and the consignee assists in handling procedures, more like a supporting role.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Agency export and consignment export are different. The agent in agency export participates throughout the whole process, similar to a "full package" service; in consignment export, the consignor dominates the foreign trade business, and the consignee assists in completing the export process, with different divisions of liability and operation.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
From the perspective of the essence of the business, in agency export, the agent is the "operator", and the consignor is the "supplier"; in consignment export, the consignor is the "commander-in-chief", and the consignee is the "clerk", and the two have obvious differences in business roles and liabilities.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The agent in agency export bears more risks and liabilities because transactions are made in its name; in consignment export, the consignor bears the main liability because it dominates the business. When choosing which mode, it should be combined with the company's own foreign trade strength and risk tolerance.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
They are not the same. The agent in agency export professionally handles each link of export, allowing the consignor to focus on production; in consignment export, the consignor needs to worry about the foreign trade business on its own, and the consignee assists in handling some procedures. The choice depends on the company's own situation.