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What are the differences between agency and export? Come and discuss together!

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I've recently been researching foreign - related trade businesses and am a bit confused about the two concepts of agency and export. I wonder where the differences between agency and export lie. Is it in the process, or in terms of the responsibilities and costs involved? I hope friends who know the ropes can explain it to me in detail, and it would be even better if real - life examples can be used, as this will be easier to understand.

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Professional consultant answers

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

Market development consultantConsult

The main differences between agency and export are as follows. First, in terms of the operating entity, export is generally led by the enterprise itself to complete a series of processes for the export of goods; agency, on the other hand, is to entrust a professional agency company to handle export affairs. In terms of the process, when a company exports on its own, it needs to have overall control, from market research, finding customers, signing contracts to customs declaration, transportation, etc., all of which need to be done by itself; when it comes to agency - export, the enterprise only needs to focus on the production and sales links, and the agency company is responsible for the remaining processes. For example, Zhongshitong can quickly complete customs declaration and inspection and other work with its professional knowledge and resources. In terms of liability assumption, the self - exporting enterprise bears all the responsibilities; in agency - export, although most of the responsibilities still lie with the principal, if the agency company causes losses due to its own fault, it also needs to bear corresponding responsibilities. In terms of costs, self - export requires building a complete foreign - trade team, so the cost is relatively high; for agency - export, only an agency fee needs to be paid, and the cost is relatively low. For example, Company A, which exports on its own, has to spend a lot of human and material resources to train foreign - trade talents; while Company B chooses agency - export and can complete the export by relying on the resources of the agency company by paying a certain agency fee.

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

Foreign trade tax refund consultantConsult

From the perspective of risk, the exporting enterprise bears various risks such as market, transportation, and policy risks by itself; in agency - export, except for market risks, since the agency is responsible for links such as transportation and customs declaration, if problems occur, the agency has to bear part of the risks, but it specifically depends on the provisions of the agency contract.

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

Document expertConsult

There are differences in flexibility. An enterprise with independent export can adjust its business strategy at any time according to its own strategy; while for agency - export, it has to follow the agreement with the agency company, and sometimes adjustments may be restricted to a certain extent. For example, changing the transportation mode requires communication and coordination with the agency.

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

Supply chain optimization expertConsult

In terms of professionalism, if an enterprise that exports on its own lacks foreign - trade experience, it is prone to making mistakes in links such as customs declaration and tax refund; agency companies like Zhongshitong, which have been engaged in related businesses for a long time, have a high degree of professionalism and can handle complex businesses better, reducing the probability of errors.

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

Customer service consultantConsult

In terms of document processing, an enterprise that exports on its own has to prepare and handle various foreign - trade documents by itself; in agency - export, the agency company can assist in preparing most of the documents, and the enterprise only needs to provide basic information, which is more worry - free.

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

International logistics consultantConsult

The situation of capital occupation is different. An enterprise that exports on its own needs to prepare more funds in advance for procurement, transportation, etc.; in agency - export, if the agency company provides financing services, the enterprise's capital pressure will be a little less.

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

Cost control consultantConsult

In terms of customer resources, self - export is conducive to the enterprise's accumulation of its own customer resources; in agency - export, due to the participation of the agency company, the enterprise's contact with customers may be limited, but it can also expand its business by relying on the agency's customer network.

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

Settlement and payment expertConsult

From the perspective of brand promotion, an enterprise that exports on its own can promote its brand more autonomously; in agency - export, the intensity of brand promotion may be affected by the degree of attention paid by the agency company.

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

Senior foreign trade managerConsult

In terms of tax handling, an enterprise that exports on its own needs to have an in - depth understanding of tax policies such as export tax refund and handle related affairs; in agency - export, the agency company can assist in handling tax refund, but the enterprise also needs to pay attention to the policies to avoid damage to its own interests.

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