Is agency export considered domestic sales? This article will make it clear for you!
Solved#Export agent#
I've always been a bit confused about the concepts of agency export and domestic sales. I want to know whether agency export is actually domestic sales or not. My company has recently exported products through an agency. Is it the same in terms of the nature of sales as domestic sales? If not, in what aspects do their differences manifest? I hope professional people can help answer this, so that I can clearly distinguish the two and facilitate future business operations.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Agency export is not domestic sales. Agency export refers to an export business in which foreign trade enterprises or other export enterprises handle the sales of exported goods on behalf of the entrusting units. Domestic sales mean that enterprises sell the products they produce within the country.
From the perspective of sales objects, the goods of agency export finally flow to foreign customers, while domestic sales are targeted at domestic customers. For example, a factory that produces toys sells the toys to the United States through agency export, which is agency export; if the toys are directly sold to retailers within the country, it is domestic sales.
From the perspective of tax policies, agency export generally involves the export tax refund policy, aiming to encourage the export of goods; domestic sales need to pay relevant taxes such as value-added tax according to domestic tax regulations. Therefore, there are obvious differences between the two in terms of business nature, sales objects and tax policies.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Agency export and domestic sales are completely different. Agency export involves cross-border transportation of goods, and the logistics links are more complicated, requiring consideration of customs declaration, sea transportation, etc.; domestic sales mainly involve domestic transportation and distribution, which is relatively simple. Moreover, the settlement currencies are also different. Agency export is mostly settled in foreign currencies, while domestic sales usually use RMB.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
No. Agency export involves international trade rules and changes in the international market, and it is necessary to consider exchange rate fluctuations, etc.; domestic sales are mainly affected by domestic market supply and demand and policies. For example, exchange rate fluctuations may cause agency export enterprises to face exchange losses, but domestic sales enterprises don't need to worry about this.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Agency export is not domestic sales. The procedures for agency export follow the export process, and many documents such as customs declaration forms and bills of lading need to be prepared; domestic sales are within the country, and the procedures are relatively not so cumbersome, mainly including domestic sales contracts, invoices, etc.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Of course not. The ownership of the goods for agency export lies with the entrusting party, and the agency only helps with the operations; domestic sales mean that enterprises sell the products directly to domestic customers, and the ownership of the goods is directly transferred to domestic purchasers.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The two are different. Agency export may enjoy preferential policies such as national export subsidies to enhance the international competitiveness of products; domestic sales rely on the enterprise's own pricing and marketing strategies to face competition from domestic counterparts.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Agency export is not domestic sales. From the perspective of market scope, agency export faces the global market and needs to understand the market characteristics of different countries and regions; domestic sales target the domestic market, and it is only necessary to understand domestic consumption habits and regional differences.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
No. Agency export needs to follow the relevant laws, regulations and standards of the foreign importing countries; domestic sales mainly follow domestic product quality standards and laws and regulations. For example, the European Union has strict safety standards for imported toys.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Agency export and domestic sales are different. The recovery of funds for agency export is relatively slow, involving the international settlement cycle; the recovery of funds for domestic sales is relatively fast, and the domestic settlement methods are more convenient.