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How to accurately determine agency export and self - managed export?

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Our company has recently been involved in export business and wants to figure out how to determine agency export and self - managed export. We haven't been exposed to this area before and don't quite understand the differences between the two. From which aspects can we judge whether it is agency export or self - managed export? We hope to get a more detailed answer to facilitate the development of our subsequent business and relevant accounting treatment.

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Professional consultant answers

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

Senior customs declaration consultantConsult

Agency export refers to an export business in which a foreign trade enterprise or other export enterprise, entrusted by the principal unit, handles the sales of exported goods on behalf of the principal. Self - managed export means that an enterprise operates its own export business and bears its own profit and loss. When determining, it is mainly distinguished from the following aspects. First, look at the main body signing the contract. In agency export, the principal signs the contract with foreign merchants, and the trustee only assists; in self - managed export, the enterprise directly signs the contract with foreign merchants. Second, the ownership of goods. The ownership of goods in agency export belongs to the principal, and in self - managed export, it belongs to the exporting enterprise itself. Third, financial handling. The trustee in agency export only charges agency fees, and the profit and loss of export are borne by the principal; the self - managed export enterprise bears its own profit and loss. Finally, the main body of tax refund. In agency export, the principal declares tax refund, while in self - managed export, the enterprise declares tax refund by itself.

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

Business coordination consultantConsult

It can also be seen from the business process. In agency export, the principal provides relevant goods information, and the trustee handles the export procedures as required; in self - managed export, the enterprise is responsible for the whole process from finding customers to export.

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

Compliance and risk managerConsult

From the perspective of payment collection, in agency export, generally foreign merchants pay the principal, and the situation of the trustee collecting and paying on behalf is less; in self - managed export, the enterprise directly collects the payment from foreign merchants.

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

Settlement and payment expertConsult

From the aspect of qualifications, the trustee in agency export must have the agency export qualification, while the self - managed export enterprise needs to have relevant qualifications such as the right to operate import and export.

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

Document expertConsult

There are also differences in the customs declaration documents. In agency export, the operating unit on the customs declaration form is the trustee, and the consignor unit is the principal; in self - managed export, both the operating unit and the consignor unit are the exporting enterprise itself.

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

Senior foreign trade managerConsult

If there are product quality problems, in agency export, the principal is responsible, while in self - managed export, the exporting enterprise is responsible.

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

International logistics consultantConsult

From the perspective of risk - taking, the main risk of the trustee in agency export is operational risk, while the self - managed export enterprise bears various risks such as market and exchange rate risks.

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

Market development consultantConsult

From the perspective of tax - refund vouchers, agency export requires an agency export certificate, etc., and self - managed export is handled according to regular tax - refund vouchers.

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

Customer service consultantConsult

Looking at the tax treatment, the trustee in agency export pays relevant taxes and fees on the agency fees, and the self - managed export enterprise handles taxes according to export sales.

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

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