Does consignment export really mean no import and export rights?

In the complex landscape of international trade, there is a rather special existence - consignment export. Many people wonder whether consignment export means that the enterprise itself has no import and export rights. Today, let's uncover the mystery behind consignment export together.

Consignment export, simply put, is a trade method in which an enterprise or individual without import and export business rights uses an enterprise with import and export business rights, that is, the agent, to complete the export of goods. The principal here, that is, the party without import and export rights, may be a manufacturing enterprise or some individual traders. They have products or trade resources, but lack the qualifications to independently carry out import and export business.

Take Mr. Zhang as an example. He runs a fairly large-scale manufacturing enterprise, and his products have a good response in the domestic market and have also received many foreign orders. However, since the enterprise has always focused on production and has not applied for import and export business rights. At this time, Mr. Zhang can find an agency company with import and export business rights like Zhongshitong. Zhongshitong uses its own qualifications to help Mr. Zhang's enterprise complete a series of complex procedures for the export process of goods, including customs declaration, inspection application, and receipt of foreign exchange.

For the principal, one of the significant advantages of choosing consignment export is that there is no need to spend a large amount of time, energy, and funds to apply for import and export business rights. Applying for import and export business rights involves a cumbersome process from preparing materials in the early stage to dealing with various approval links, and the cost is quite high. Through consignment export, the principal can focus its energy on product production, research and development, and market expansion.

At the same time, the agency company can handle various problems in the export process more efficiently with its professional experience and extensive resources. For example, in the customs declaration link, Zhongshitong is familiar with various customs policies and declaration requirements, and can ensure the smooth customs clearance of goods and avoid delays or fines caused by incorrect declarations. This is like Ms. Li's company. Before, when it tried to export on its own, the goods were detained at the customs for many days due to incorrect customs declaration materials, causing considerable losses. After choosing consignment export, such problems never occurred again.

Of course, consignment export is not without risks. On the one hand, there may be information asymmetry between the principal and the agent. The agent may, for the sake of its own interests, not communicate with the principal in a timely manner in some key links, resulting in the principal not having a comprehensive understanding of the export process. On the other hand, the risk of foreign exchange collection cannot be ignored. If the agent operates improperly in the process of collecting foreign exchange or encounters situations such as foreign customers defaulting on payment, the principal's capital recovery may be affected.

To deal with these risks, the principal must conduct full investigations and evaluations when choosing an agency company. It is necessary to examine the reputation, qualifications, and past performance of the agency company. At the same time, both parties should sign a detailed and standardized consignment export agreement to clarify the rights and obligations of both parties, especially in key aspects such as foreign exchange collection and cost settlement to avoid disputes in the future.

With the continuous optimization of China's trade policies and the continuous improvement of the business environment, it may become more convenient to obtain import and export business rights in the future. However, this model of consignment export, due to its unique flexibility and professionalism, will still occupy a place in international trade. Whether for small and medium-sized enterprises or for some emerging trade entities, consignment export provides a feasible way for them to enter the international market.

Hope that through this article, everyone can have a clearer understanding of the relationship between consignment export and import and export rights. In the tide of international trade, make the most suitable choice according to your own actual situation. You are also welcome to share your experiences and insights in consignment export in the comment area.