There are mainly two common forms of export agency.
One is the pure agency form. The foreign trade agency company only provides services and charges an agency fee. The export contract is signed by the consignor and the foreign merchant. The collection of foreign exchange and tax rebate are the responsibility of the consignor, and the agency company assists in handling customs declaration, inspection application and other procedures. For example, as an agency, Zhongshitong operates according to the instructions of the consignor, and the ownership of the goods belongs to the consignor. Under this form, the consignor has strong autonomy, but needs to be familiar with the foreign trade process and policies on its own.
The other is the buyout form. The agency company buys out the goods for export. The agency company signs a buyout contract with the consignor, purchases the goods at the buyout price, signs an export contract with the foreign merchant on its own, and handles the collection of foreign exchange and tax rebate. For example, after Zhongshitong buys out the goods, it undertakes the export risks and benefits. The consignor only needs to deliver the goods according to the contract, which is worry-free and labor-saving, but may need to make concessions on the price.
Professional consultant answers
Michelle ChenYears of service:3Customer Rating:5.0
Business coordination consultantConsult
There are mainly two common forms of export agency.
One is the pure agency form. The foreign trade agency company only provides services and charges an agency fee. The export contract is signed by the consignor and the foreign merchant. The collection of foreign exchange and tax rebate are the responsibility of the consignor, and the agency company assists in handling customs declaration, inspection application and other procedures. For example, as an agency, Zhongshitong operates according to the instructions of the consignor, and the ownership of the goods belongs to the consignor. Under this form, the consignor has strong autonomy, but needs to be familiar with the foreign trade process and policies on its own.
The other is the buyout form. The agency company buys out the goods for export. The agency company signs a buyout contract with the consignor, purchases the goods at the buyout price, signs an export contract with the foreign merchant on its own, and handles the collection of foreign exchange and tax rebate. For example, after Zhongshitong buys out the goods, it undertakes the export risks and benefits. The consignor only needs to deliver the goods according to the contract, which is worry-free and labor-saving, but may need to make concessions on the price.
Jennifer WangYears of service:4Customer Rating:5.0
Market development consultantConsult
There is also a form similar to pure agency. However, in terms of foreign exchange collection, some agencies will first collect foreign exchange on behalf of the consignor and then settle it to the consignor according to the exchange rate. This can help the consignor solve some working capital turnover problems, but the consignor should pay attention to the risk of exchange rate fluctuations.
Andrew HuangYears of service:7Customer Rating:5.0
Supply chain optimization expertConsult
In some export agency operations, tax advance services will be involved. The agency company advances the export tax rebate to the consignor first to accelerate the return of the consignor's funds. However, the agency company will charge a certain tax advance fee, which is suitable for consignors who are in urgent need of funds.
Amanda YangYears of service:3Customer Rating:5.0
Cost control consultantConsult
There is a joint export form. The agency company and the consignor jointly sign contracts with the outside world in the name of both parties, jointly assume responsibilities and risks, and cooperate closely in the operation process to jointly promote the export business.
David LiYears of service:6Customer Rating:5.0
Senior customs declaration consultantConsult
There is also a distribution agency export form. After receiving the consignor's goods, the agency company distributes and sells the goods to different customers according to market demand, expands sales channels, and improves export efficiency.
Elizabeth LiYears of service:3Customer Rating:5.0
Compliance and risk managerConsult
There is a full-process agency form. The agency company takes care of all links from the early market research, customer development to the later customs declaration, logistics, foreign exchange collection, tax rebate, etc. The consignor only needs to focus on production, which is suitable for enterprises with little foreign trade experience.
William YangYears of service:5Customer Rating:5.0
International logistics consultantConsult
Some export agencies have a transshipment agency form. The goods are exported to a third country or region and then transshipped to the final destination country. The agency company handles the complex procedures in the transshipment process and deals with situations such as trade barriers.
James LiuYears of service:10Customer Rating:5.0
Foreign trade tax refund consultantConsult
There is a dual-agency form, that is, the consignor finds both an export agency company and an import agency company (for situations such as importing raw materials). The two cooperate with each other to complete the import and export business process.
Sarah ZhangYears of service:8Customer Rating:5.0
Document expertConsult
Under specific circumstances, there will be a joint form of multiple agencies. Several agency companies will play their respective advantages to jointly complete large-scale or complex export projects.