• Welcome to China Foreign Trade Agency!

What are the differences between agency and export? Come and help me answer!

NO.20251129*****

Problem Analysis: *****, Solution: *****, Process and Cost: *****

Get the solution

I'm a novice in foreign - trade - related work. Recently, I often come across the two concepts of agency and export in my business, and I'm a bit confused. I would like to ask everyone, what is the difference between agency and export? I hope you can explain it to me from multiple aspects such as the operation process, liability assumption, and profit model, so that I can clearly understand the differences between the two and carry out my work better.

Quick Consultation :

Professional consultant answers

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

Foreign trade tax refund consultantConsult

The main differences between agency and export are as follows. From the perspective of the operation process, export usually means that the enterprise completes a series of processes for the goods to go through customs, including finding customers, booking shipping space, customs declaration, and settlement of exchange; while agency export entrusts a professional agency company to complete these operations, and the principal only needs to focus on production or providing the source of goods.

In terms of liability assumption, the self - export enterprise is fully responsible for the entire export process. If problems occur, such as non - compliance of product quality or customs declaration errors, it shall bear the responsibility itself; in agency export, the agency company is responsible for its operation links. For example, problems caused by agency customs declaration errors are the responsibility of the agency company, but the responsibility for the quality of the goods itself still lies with the principal.

In terms of the profit model, the profit of the export enterprise comes from the price difference of goods sales; the agency company mainly makes a profit by charging agency fees, generally charged at a certain percentage of the export amount.

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

Market development consultantConsult

Agency is more like a helper. When an export enterprise has no energy or ability to handle certain links, it looks for an agency. The agency company can provide more professional services and reduce the exploration cost of the enterprise. While if an enterprise has strong strength in export, it can control every link, and the profit margin may be larger because there is no need to pay agency fees.

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

Settlement and payment expertConsult

From the perspective of risk, the risks of export enterprises are relatively concentrated, and they need to deal with risks in various links. Agency export can disperse some risks. The agency company bears some operation risks, but the principal still has to bear risks such as market risks and product quality risks.

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

Business coordination consultantConsult

In terms of qualification requirements, export enterprises generally need a series of qualifications such as the right to operate import and export; in addition to basic business qualifications, the agency company also needs to have professional foreign - trade service capabilities and qualifications to handle various export businesses.

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

Senior customs declaration consultantConsult

In terms of cash flow, the export enterprise controls the inflow and outflow of funds by itself. If there is a shortage of funds, it may affect the business; sometimes in agency export, the agency company can provide certain financial support, such as advancing the payment for goods, to relieve the principal's financial pressure.

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

Senior foreign trade managerConsult

In terms of information acquisition, the export enterprise needs to collect international market information by itself; because the agency company serves multiple enterprises, it has a wider range of information channels and can provide the principal with some market trends and other information.

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

Supply chain optimization expertConsult

From the perspective of brand building, the export enterprise can directly establish its own brand image; in the case of agency export, brand building is mainly the responsibility of the principal, and the agency company generally does not participate in brand building.

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

Document expertConsult

In terms of flexibility, the export enterprise can flexibly adjust its business strategy according to its own situation; agency export needs to communicate and coordinate with the agency company, and may be slightly less flexible in some decisions.

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

Customer service consultantConsult

In terms of tax rebates, the export enterprise handles tax rebates by itself; in agency export, the principal provides the materials, and the agency company assists in handling them. The tax rebate amount belongs to the principal.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

You may also like

What is export trade with agent customs declaration? Come and learn about it!

Not familiar with international trade, want to know what is export trade with agent customs declaration, as well as its differences from general export trade, the benefits and precautions of finding an agency company. The best answer points out that export trade with agent customs declaration is that an enterprise entrusts a professional agent to handle export customs declaration procedures. The difference from general export trade lies in outsourcing the customs declaration business. Finding an agent has benefits such as improving efficiency, but attention should be paid to qualifications, reputation, and clarifying rights and obligations.

What are the charging standards for export agency in Shanghai? Does anyone know?

Our company is in Shanghai and intends to find an agent to export products. We want to know about the charging situation of export agency, including the charging items and methods. The best answer points out that the charges for export agency in Shanghai mainly include agency fees (about 0.8% - 3% of the export amount), tax advance fees (about 1% - 2% monthly interest rate), and sundry fees (customs declaration fee is 200 - 500 yuan per bill, and documentation fee is 100 - 300 yuan). And there are differences among different agency companies. It is recommended to make more comparisons.

How to handle the tax refund for export by entrusted agency? What should be noted?

Our company used to export on its own before and now intends to export products by entrusted agency. We have doubts about the tax refund process for export by entrusted agency and would like to ask if it is the same as the process for tax refund of self-export, what materials are required and how long the tax refund takes. The best answer states that the tax refund process for export by entrusted agency is different. Both parties need to sign an agreement. After handling the relevant procedures, the entrusted party will transfer the materials to the entrusting party. The entrusting party will apply to the tax authorities for tax refund with these materials. The tax refund usually takes about 20 working days, with differences in different regions.

How much do you know about the tax rate of import agency fees in Chongqing? Come and find out!

In Chongqing, if you plan to import goods and want to know the tax rate of import agency fees in Chongqing, and ask whether its calculation standard is fixed, whether it changes due to factors such as the types of goods, and whether other fees are involved in the calculation. The best answer is that the value-added tax rate for import agency services is 6% for general taxpayers and 3% for small-scale taxpayers. There are preferential policies during specific periods, and the tax rate may vary depending on the nature of the goods. Usually, the tax is calculated based on the agency fees, and the tax rates for different nature services need to be calculated separately.

Does entrepot trade count towards import and export figures? Come and get the answers!

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.

What is the charging standard for export agency customs declaration in Jiangmen? Does anyone know?

I have goods to export in Jiangmen and want to know about the charging situation for export agency customs declaration in Jiangmen, such as the basis for charging and the differences in charging for different types of goods. The best answer is that there is no fixed charging standard, which is affected by factors such as the type of goods, the value of the goods, and the customs declaration method. The basic customs declaration fee is 200 - 500 yuan per ticket, the document fee is 100 - 300 yuan per ticket, and the inspection fee, etc. are determined according to the actual situation. It is recommended to provide accurate information to obtain an accurate quotation.