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Is it a pipe dream for individual businesses to do foreign trade?

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A detailed explanation of the complete process for individual businesses to apply for import and export rights, including 5 major steps such as business scope expansion and customs registration, revealing 3 common risk points, and providing 3 low-cost startup solutions like cross-border e-commerce and exhibition consignment to help small merchants explore international markets.

"Mr. Zhang's small workshop earned an extra 200,000 yuan last year by exporting handmade leather goods!"—You might not know that with policy relaxation, the threshold for import and export rights for individual businesses has significantly lowered. This article will break down the entire process from application to practice, revealing the "going global" code for small merchants.

1. Why do individual businesses need import and export rights?

Traditionally, foreign trade was seen as exclusive to enterprises, but the reality is changing:

  • Cost savings: No need for agents, saving 5-15% commission per order
  • Profit control: Directly dealing with overseas clients increases profit margins by over 30%
  • Policy benefits: Special tax incentives for new models like cross-border e-commerce
Ms. Li's ceramic studio is a prime example, with per-unit profits jumping from 80 yuan to 150 yuan after self-managed exports.

2. A 5-step practical guide to application

The foreign trade code hidden in the business license

Step 1: Business scope expansion

Bring your ID and business license to the local administration bureau to add "import and export of goods" or "import and export of technology" to your business scope, usually completed in 1-3 working days.

Step 2: Customs registration

Submit via the "Single Window for International Trade":

  • Customs declaration unit registration form
  • Scanned copy of business license
  • Copy of operator's ID
Step 3: Foreign exchange administration registration

Individual businesses needing foreign currency accounts must additionally submit the Foreign Trade Operator Registration Form to the local foreign exchange bureau.

3. Three major pitfalls to avoid

1. Product misjudgment: Some goods require special qualifications (e.g., FDA certification for food)

2. Tax traps: Export tax rebates require separate applications and cannot be mixed with domestic sales taxes

3. Logistics risks: For small batches, cross-border e-commerce logistics lines are recommended

4. Three low-cost startup models

  • Cross-border e-commerce: Test the waters via platforms like Amazon, with first orders controllable under 5,000 yuan
  • Exhibition consignment: Partner with supply chain companies like Zhongshitong to participate in overseas exhibitions
  • Custom orders: Take personalized orders on handmade platforms like Etsy

Where is your opportunity?

While your neighbor Lao Wang complains about market saturation, some have already opened new markets through import and export rights for individual businesses. Leave your industry in the comments for tailored global expansion advice!

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Further Reading
5 Fatal Misconceptions about Chengdu Foreign Trade Agents
Is the foreign trade agency too tricky? Three tips to avoid pitfalls
Attention for Foreign Trade Practitioners! Can Tax Refunds Be Claimed Even Without Receiving Payment for Goods?
Is Foreign Trade Agency Export a Savior or a Trap for Small and Medium - sized Enterprises?
Is the water too deep in foreign trade agency? These 5 points will teach you to spot it at a glance
Are Foreign Trade Agents Killing Sales Representatives?

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