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What exactly are the differences between agency and export? Come and find out!

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I'm planning to do foreign trade related business, and now I'm a bit confused about these two ways of agency and export. I want to know what the differences between agency and export are. Is it the different operation processes, or the differences in liability assumption? I hope to understand the differences between the two from various aspects so that it will be convenient for me to choose a way that suits the development of my business later.

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Professional consultant answers

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

Settlement and payment expertConsult

There are differences between agency export and general enterprise self-export in multiple aspects. First of all, the operating entities are different. When an enterprise does self-export, the enterprise itself dominates the whole export process, including finding customers, negotiating orders, arranging transportation, etc.; while in agency export, professional agency companies are entrusted to handle some or all of the export matters. Secondly, in terms of capital flow, self-exporting enterprises directly settle the payment for goods with customers; in agency export, it may be that the agency company collects the payment on behalf of the entrusting party and then transfers it to the entrusting party, or it may settle in the agreed way. Moreover, there are differences in liability assumption. Self-exporting enterprises are fully responsible for the risks of the whole export business, such as the quality problems of goods, customer defaults, etc.; when doing agency export, the agency company generally only bears the responsibilities caused by its own faults, such as not operating according to the instructions of the entrusting party. In addition, self-exporting enterprises need to establish their own foreign trade teams, understand foreign trade policies and regulations, etc., while agency export can make use of the professional experience and resources of the agency companies. The choice of which way should be made by comprehensively considering the strength, resources and business needs of the enterprise itself.

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

Compliance and risk managerConsult

From the perspective of cost, self-export requires the formation of a foreign trade team, investment in office facilities, etc., with high upfront costs; agency export only requires the payment of agency fees, and the cost is relatively flexible.

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

Foreign trade tax refund consultantConsult

There are differences in file handling. Self-exporting enterprises handle all kinds of customs declaration and clearance files by themselves; in agency export, the agency company assists in preparing some files, and the enterprise cooperates by providing basic information.

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

Senior foreign trade managerConsult

In terms of customer resources, self-export is beneficial for enterprises to accumulate their own customers; in agency export, the customers may be introduced by the agency company, and the enterprise has less control over the customers.

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

Supply chain optimization expertConsult

Self-export has high flexibility, and enterprises can adjust their strategies according to their own plans; agency export may need to follow the procedures of the agency company, and the flexibility is limited.

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

Customer service consultantConsult

In terms of tax rebates, self-exporting enterprises handle tax rebates by themselves; in agency export, the agency company can assist, which is more convenient for enterprises that are not familiar with the tax rebate policies.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

In terms of brand building, self-export is beneficial for enterprises to shape their own brands; in agency export, brand promotion may be limited because some business operations are carried out in the name of the agency company.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Self-export requires high knowledge and experience of foreign trade for enterprises; agency export can make up for the problem of insufficient experience of enterprises.

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

Market development consultantConsult

In terms of transportation arrangements, self-exporting enterprises find freight forwarders by themselves; in agency export, the agency company may be responsible for arranging transportation, which saves the enterprise some trouble.

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

Cost control consultantConsult

In terms of financial handling, self-exporting enterprises need to calculate various foreign trade revenues and expenditures in detail; agency export only needs to settle with the agency company according to the agreement, and the financial handling is a bit simpler.

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