How Deep Is the Water in Import and Export Agency?

"Mr. Zhang recently received an overseas order, but almost lost 100,000 yuan due to his unfamiliarity with the import and export process!" Such stories are common in the trade industry. What difficulties can the import and export agency services actually help enterprises solve? Today, we are going to unveil this seemingly mysterious but crucial business link.

Import and Export Agency is by no means a simple "running errands on behalf" service. Its core value is reflected in three major dimensions:

• Full-process Customs Clearance Service: From the review of customs declaration forms, the classification of HS codes to the calculation of taxes and fees, professional agencies can avoid demurrage fines caused by incorrect declarations. Ms. Li's import of chemical raw materials was once detained by the customs for 2 weeks due to incorrect classification.
• Logistics Solutions: Including special scenarios such as full container/less than container load ocean shipping, air transportation of special goods, and dangerous goods logistics. Data shows that professional agencies can reduce logistics costs by 18% - 25%.
• Document Compliance Management: The preparation of 15 types of trade documents such as certificates of origin and FORM E often requires familiarity with the updated standards of different countries. The format of ASEAN certificates underwent 3 adjustments in 2023.

In addition to basic services, high-quality agencies also offer these hidden treasures:

• Exchange Rate Locking Service: Helping customers avoid exchange losses at the time of foreign exchange settlement. An agricultural product exporter once earned 7% more profit because of this.
• Tax Refund Acceleration Channel: Shortening the average tax refund cycle from 90 days to 45 days through a pre-audit mechanism.
• Exploiting the Benefits of Free Trade Agreements Such as RCEP: Many enterprises don't know that the tariff on imported electronic components from Southeast Asia can be reduced from 8% to 0%.

The quality of agency services on the market varies greatly, and special attention should be paid to:

• Operating Beyond the Scope: Some agencies claim to be able to handle special commodities such as medical devices, but actually lack the corresponding qualifications.
• Hidden Charges: The itemized quotations for customs declaration fees, inspection fees, and amendment fees may be 40% more expensive than packaged services.
• Data Security Issues: Freight forwarders have access to the core business data of enterprises, and it is necessary to confirm that their information systems have passed the ISO27001 certification.

With the emergence of new business forms such as cross-border e-commerce 9710 and 9810, agency services are developing towards the two poles of digitalization and specialization. It is recommended that enterprises:

• Regularly evaluate the AEO certification level and customs affairs system version of agents
• Require the provision of quarterly trade compliance training
• Establish an alternative agency mechanism to deal with emergencies