What are the differences between freight forwarders and export agents?
"The order just negotiated last month, and the customer suddenly demanded early delivery, but the customs declaration documents are not yet complete..." Mr. Zhang stared at the computer screen, with fine beads of sweat oozing from his forehead. Such scenes are common in the foreign trade industry, and export agents and freight forwarders are the key players who help enterprises resolve such crises. They connect every link of international trade like precise gears, but do you really understand the differences and cooperation logic between the two?
When Ms. Li's ceramic handicrafts need to be exported to Europe, the export agent company will do these core tasks for her:
- Review the product HS code to avoid fines caused by incorrect customs classification
- Prepare a full set of customs clearance documents such as the certificate of origin and quality inspection report
- Handle export tax rebates, which can help enterprises recover up to 13% of their profits
Professional export agents can anticipate policy changes in various countries. For example, last year, a certain country suddenly required the addition of a fumigation certificate, and the Zhongshitong team notified customers to adjust the packaging 3 months in advance, avoiding the return of more than 200 batches of goods.
The core value of freight forwarders lies in using the optimal cost - combined transportation plan:
- Less - than - container - load (LCL) shipping: suitable for small - batch goods, saving more than 40% in freight
- Express air freight: For urgent orders, the "flight with cargo" service can be selected
- China - Europe freight train: 15 days faster than sea freight, with a cost only 1/3 of air freight
During last year's Christmas season, a toy manufacturer faced a breach of contract due to port congestion. The freight forwarder immediately launched an "ocean - to - air" emergency plan. Although the freight increased by 50,000 yuan, the final payment of the 800,000 - yuan order was saved.
When export agents and freight forwarders have interoperable data, a 1 + 1>2 effect will occur:
- Automatically verify the customs declaration form and manifest information, reducing the error rate by 90%
- Track the position of goods and customs clearance status in real - time
- Automatically calculate preferential tax rates under free trade agreements such as RCEP
Recently, through Zhongshitong's collaborative system, Mr. Zhang found that changing the export port of goods from Qingdao Port to Lianyungang not only enables the enterprise to enjoy government subsidies, but also shortens the transportation time by 2 days.
Whether it is an export agent or a freight forwarder, it is recommended that enterprises pay attention to:
- Industry qualifications: Check certificates such as the Customs AEO certification and FIATA membership
- Case experience: Require the provision of operation records for the same category of goods
- Risk plans: Inquire about emergency plans in case of sudden epidemics/wars
In the rough waves of international trade, professional service providers are the ballast stones of enterprises. Have you recently encountered operational troubles caused by logistics or customs clearance problems? Welcome to share your experiences in the comment section. We will select 3 readers to provide free consulting services.
- Further Reading
- Agent Export and Tax Refund? Everything Explained Here!
- Shock! This plastic export agency company is incredibly amazing!
- Weihai Exported Home Secretary Cabinets Agency, Do You Really Understand It?
- Agent Export in Changde, There Are So Many Advantages?
- Do You Really Understand the Agency Export Customs Declaration?
- Agent Export Input Tax Deduction, Do You Really Understand It?
If you require China procurement agency or import-export agency services, please get in touch with us through the following channels. Our professional consultants will reach out to you promptly for personalized support.
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