The True Story of the Huge Profits in Foreign Trade Agency

Have you ever been deterred by the complicated export process? Mr. Zhang tried to export independently for the first time last year, but due to incorrect documents, the goods were stranded at the port, resulting in a loss of nearly 100,000 yuan. Such stories are not uncommon in the foreign trade industry. Today, we will lift the veil of mystery on foreign trade agency exports and guide you to master the core process in the simplest way to avoid pitfalls.

For small and medium-sized enterprises, independent exports often face three major difficulties: Complex Documents, Tedious Tax Rebates, and Limited Channels. Ms. Li's handicraft factory once missed an EU order due to unfamiliarity with the rules of the certificate of origin. The core value of foreign trade agencies lies in:

• A professional team handles the whole process such as customs declaration and inspection application.
• Advance payment of export tax rebates to relieve capital pressure.
• Sharing a mature international logistics network to reduce transportation costs.

Step 1: Qualification Review and Signing of Contracts

When choosing an agency, it is necessary to check its customs AEO certification qualification. The typical cooperation process includes: signing a tripartite agreement (factory - agency - overseas customer), determining the agency commission rate (usually 0.8% - 1.5%), and clarifying the terms of liability division.

Step 2: Goods Preparation and Inspection

• The agency sends staff or entrusts a third-party inspection agency to conduct inspections.
• Focus on checking product specifications, packaging labels, and hazardous goods classification.
• Issue an inspection report as the basis for customs clearance.

During this stage, the following need to be prepared simultaneously:

• Commercial invoice (the error in amount should be controlled within 5%).
• Packing list (indicating gross and net weights and HS code).
• Certificate of origin (preferential certificates such as FORM E/FTA can save customs duties).

1. Dispute over Declared Value: A lighting factory was required by the customs to pay additional taxes because its declared customs value was 30% lower than the market price.

2. Misuse of HS Code: Classifying USB chargers into the cable category resulted in an extra 7% customs duty payment.

3. Violation of Wooden Packaging Regulations: Unfumigated pallets were returned in full containers in Australia.

Modern agency services have achieved:

• Tax rebate advance payment arriving in the account within T + 3 days (the traditional process takes 45 - 60 days).
• Foreign exchange risk hedging (tools such as forward foreign exchange locking).
• Pre-audit of soft clauses in letters of credit (reducing the risk of bank dishonor).

When your export volume exceeds $200,000 for three consecutive months, or you frequently encounter logistics disputes, it's time to consider agency services. You might as well take a test: Can you accurately state the latest anti-dumping duty rate of the target country? If the answer is no, perhaps it's time to let the professionals do the professional work.

Welcome to share your foreign trade stories in the comment section. We will randomly select three readers to provide free export process diagnosis services.