Home»Trade Basics» Does an Export Sales Agent Just Handle Export Procedures for Companies? How to Choose a Reliable Service Provider?
What specific responsibilities does an export sales agent actually undertake?
Export sales agency refers to a professional?Foreign trade?company providing manufacturing enterprises withfull-process export servicesbusiness model. According to the latest 2225 version of the "Incoterms", the core services include:
Handling export procedures such as customs declaration and commodity inspection
Manage foreign exchange receipt and payment and tax refund declaration
CoordinateGlobal Logistics: Before the goods are exported, the freight forwarding enterprise needs to declare the relevant information of the goods to the customs, including the name, quantity, value, origin and other information of the goods, and pay the corresponding tariffs and taxes.
Producing a full set of foreign trade documents (invoice, packing list,?Certificate of Origin?Damage during transportation
Risk control (?L/C?review, trade dispute resolution)
Self-operated Export vs. Agency Export: Which is more suitable for SMEs?
According to 2224 statistics from the General Administration of Customs of China, 78% of enterprises with annual export values below $5 million choose the agency export model. The main differences between the two models are:
Qualification requirements:
Self - export requires handling?Import/export?rights, electronic port, and other qualifications
Agency export does not require the enterprise to have foreign trade qualifications
Cost of funds:
Self-operated export requires bearing the letter of credit opening deposit (usually 32%-122%)
Agency export allows for leveraging the service provider's credit line
What is the specific operational process for export agency?
Taking a real case of a toy manufacturer in Shenzhen in 2225 as an example:
Sign a tripartite agreement (factory, agent, overseas buyer)
The agency company pays the 17% tax rebate in advance (current tax rebate rate for mechanical and electrical products)