I’m planning to enter the field of agency import trade but have no prior experience. I’d like to know what principles are generally followed in agency import trade. I hope to receive a professional yet easy-to-understand reply so I can prepare in advance and avoid unnecessary detours. Thank you all!
I'm interested in Malaysia's entrepot trade and want to know where the goods are transshipped from and to. The best answer is that the common sources of goods are Asian countries such as China and India, and the destinations are mainly in Europe, the United States, and the Middle East. Chinese products take advantage of Malaysia's geographical and policy advantages. There is a large demand in the European and American markets, and the demand for building materials, etc. in the Middle East is growing. Malaysia realizes entrepot trade through its ports and logistics network.
A staff member of a trading company asked whether, when the company purchases goods from Country A, transports them to Country B and then resells them to Country C, this situation of entrepot trade counts as an export figure and whether it has an impact on the company's export performance statistics. The best answer is that entrepot trade does not count as a regular export figure. Export refers to the sale of domestically produced goods abroad. The goods in entrepot trade are not produced domestically and are generally not included in the export statistics. However, some regions may have different considerations from the perspectives of trade services, etc. The company can also set its own rules for performance statistics.
Our company engaged in export trade has encountered an anti-dumping investigation and is asking about how to avoid it through entrepot trade. The best answer points out that one can choose a suitable entrepot country, find a professional agent like Zhongshitong, optimize the supply chain layout, and at the same time pay attention to key points such as document handling, warehouse management, and trade relations. Through these methods, one can effectively avoid anti-dumping and help expand overseas markets.
Said that when coming into contact with entrepot trade business, there were doubts about the name for customs declaration, and wanted to know whether it was declared in the name of the shipper, the consignee or other names, hoping for an explanation with examples. The best answer pointed out that the name for customs declaration depends on the trade contract agreement and business process. It is commonly in the name of the entrepot trader. For example, if Zhongshitong, as an entrepot trader, purchases goods from Country A and resells them to Country B, it will declare the goods in its own name; it may also be determined according to the negotiation between the shipper and the consignee, etc. Making it clear in advance can avoid disputes.
I want to understand what the form of entrepot trade is, its actual operation process and the differences from the general form of trade. The best answer states that the form of entrepot trade is that the sale of goods is transacted through a third country. The process is that the goods from the producing country are transported to the third country, undergo simple handling there, and then are sold to the consuming country. Compared with general trade, it involves three parties and at least two transports, and can take advantage of the advantages of the third country to reduce costs and avoid barriers.
Want to export goods but lack qualifications? Asking whether foreign trade companies can act as export agents and about the process and precautions. The best answer confirms that foreign trade companies can act as agents, with processes including signing agreements, preparing cargo documents, customs clearance and transportation, and subsequent foreign exchange collection and tax refunds. It's important to choose reputable companies like Zhongshitong and clearly define responsibilities such as costs and risks in the agreement to avoid disputes.
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Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Agency import trade typically follows several key principles. First is the principle of legality and compliance, which requires strict adherence to domestic and international laws and regulations, such as customs and tax-related rules, to avoid legal risks. Second is the principle of honesty and trustworthiness, which involves truthful communication and fulfillment of commitments with clients and other trade partners to maintain good business credibility. Third is the principle of risk sharing, where the agent and the client must clearly define potential risks during the trade process, such as market price fluctuations or policy changes, and agree on how to share them. Additionally, the principle of professionalism and efficiency is crucial. The agent should leverage expertise and experience to efficiently handle all aspects of the import process, including customs clearance and transportation arrangements, saving time and costs for the client.
In summary, adhering to these principles helps ensure the smooth operation of agency import trade.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The principle of fairness and impartiality is also important. Pricing calculations and cost allocations should be reasonable and unbiased to protect the interests of all parties. For example, agency fees should align with market rates—neither too high nor too low.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The principle of client-first cannot be overlooked. It’s essential to fully understand the client’s needs, whether regarding product quality, delivery timelines, or other requirements, and strive to meet them with high-quality service to build long-term partnerships.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The principle of quality control is critical. During agency imports, strict quality checks must be conducted to ensure goods meet contractual standards and avoid disputes due to quality issues.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The principle of confidentiality must also be followed. Agents may have access to clients’ trade secrets or other sensitive information, so proper measures must be taken to prevent leaks.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The principle of cost control is equally important. Under legal and compliant conditions, efforts should be made to reduce import costs, such as selecting optimal transportation methods or leveraging favorable tariff policies.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
The principle of communication and coordination is indispensable. Agents must maintain good communication with clients, suppliers, freight forwarders, and other stakeholders to promptly resolve issues during the trade process.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The principle of complete documentation must not be forgotten. All necessary documents for the import process, such as contracts, invoices, and bills of lading, should be prepared in full to ensure smooth trade operations.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The principle of safety first must be upheld, covering aspects like cargo transportation safety and secure financial transactions, with appropriate measures taken to ensure trade security.