Is the import agency business too complicated? The pitfalls a Shanxi boss fell into are worth 10 million
Recently, Mr. Zhang from Taiyuan, Shanxi, encountered a vexing problem: He wanted to act as an agent for a batch of German precision instruments, but got stuck in the customs clearance process for a full two months. "There were a foot - thick stack of English documents that I couldn't understand," Mr. Zhang's experience is not unique. With the accelerated development of Shanxi's export - oriented economy, more and more enterprises are turning their attention to overseas markets. However, the three major obstacles of international logistics, tariff policies, and qualification certification have deterred many entrepreneurs.
After visiting more than a dozen local enterprises in Shanxi, we found the following common misunderstandings:
- "Finding a freight forwarder can handle everything": In fact, special goods such as medical devices require import licenses, and food products need to be pre - filed. These all require professional teams to operate;
- "The cheaper the tariff, the better": Ms. Li from Taiyuan once paid 23% more in tariffs because she chose a non - agreement tax rate. In fact, free trade agreements such as those between China and South Korea, and China and ASEAN can enjoy preferential treatment;
- "The cost, insurance and freight (CIF) price is the most cost - effective": When the international transportation adopts the CIF clause, the marine insurance often has insufficient coverage. Last year, an enterprise bore a loss of 700,000 yuan due to damaged goods.
Take the Italian wine import project handled by Zhongshitong as an example. The keys to success lie in three aspects:
- Pre - classification: Submit the pre - confirmation of the commodity code to the customs 6 months in advance to avoid late - declaration fees due to classification disputes after the goods arrive at the port;
- Dynamic tracking: Through the blockchain traceability system, monitor the whole - process temperature control from the Port of Hamburg to Taiyuan Comprehensive Bonded Zone in real - time;
- Tax planning: Utilize the RCEP origin accumulation rule, place part of the bottling process in Vietnam, and finally reduce the tariff to 5.8%.
In 2023, two significant changes occurred in the Shanxi import agency market: First, the proportion of the cross - border e - commerce B2B model increased to 37%, and second, the demand for "door - to - door" services increased by 200%. It is worth noting that:
- The "pre - inspection" channel opened in Taiyuan Wusu Comprehensive Bonded Zone can reduce the customs clearance time to 6 hours;
- Overseas exhibitions such as the German Industrial Exhibition have started to provide a one - stop solution for product selection - logistics - customs clearance;
- Some agencies have launched a "risk - sharing" model, charging a floating service fee based on the import volume.
We suggest choosing according to the annual import volume:
- Trial period (< 500,000 yuan): Give priority to service providers that handle documents on behalf of others and settle accounts per ticket;
- Growth period (500,000 - 3,000,000 yuan): It is recommended to sign an annual framework agreement to enjoy volume discounts;
- Stable period (> 3,000,000 yuan): You can consider jointly establishing an overseas procurement center to directly connect with source suppliers.
- Further Reading
- How much do you know about Fangchenggang International Railway Import Agency?
- What are the inside stories of Sichuan import agency!
- The Importance of Suqian Air Transportation Import Agency!
- Beijing Red Wine Import Agency
- Shenyang General Chemical Import Agency
- Exposure of the Black Industrial Chain of Import Agency
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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