Home»Trade Basics» How exactly does entrusted export agency help enterprises solve foreign trade challenges?
1. What is entrusted agency export? How does it differ from self-operated export?
Entrusted agency export refers to the situation where a qualified?Import/export?qualifications?Foreign trade?The service enterprise (the agent) is entrusted by the manufacturing enterprise (the principal) to handle export customs clearance and other procedures in the name of the agent.?Forex Settlement?, a comprehensive service model covering the entire foreign trade process including tax refunds. The key difference from self-operated exports lies in:
Discrepancy in the Declaration Form Header: The agent shall declare as the operating entity, with the principal displayed in the remarks column.
The flow of funds varies.: Foreign exchange transactions shall be collected and paid through the agent's account, and a standardized settlement process must be established.
The responsible entity is clearly defined.:The agent shall be responsible for customs declaration, while the principal shall be accountable for the quality of the goods.
II. What types of enterprises are suitable for adopting entrusted agency export?
The following three types of enterprises most frequently opt for the agency export model:
Small and medium-sized manufacturing enterprises: Annual export volume below $5 million, with no professional foreign trade team established yet.
Cross-border new business model enterprises:?E-commerce?Sellers, market procurement trade entities, and other specially supervised subjects.
Special industry enterprises:?Medical Devices?, chemical products, and other export sectors requiring specialized qualification approvals
III. What specific services are included in entrusted export agency?
Standardized foreign trade agency services should encompass seven core modules:
Preparation and Submission of Customs Declaration Documents
Foreign exchange receipts and payments and?Foreign exchange settlement?(1) Port of Departure and Port of Destination:
Including the verification of VAT special invoices.
Tax refund documentation filing management, etc.
Logistics transportation plan design
Trade Compliance Risk Review
Application of International Settlement Instruments
Foreign Trade Data Statistics Service
IV. What Compliance Risks Exist When Choosing an Entrusted Agent for Export?
Pay special attention to three key risk points:
Four-in-One Risk: The flow of goods, funds, invoices, and information must be fully aligned.
Customs declaration risk: Incorrect reporting of commodity codes may lead to administrative penalties. Among the classification error cases reported by the General Administration of Customs in 2021, agency exports accounted for 37%.
Refund time limit risk: Delayed submission of tax refund materials by the agent will affect the company's cash flow.
V. How to Assess the Professionalism of a Trustee Service Provider?
Recommend evaluating service providers from five dimensions:
Customs AEO certification level (priority given to Advanced Certified Enterprises)
Foreign exchange management classification level (Category A enterprises as the cooperation foundation)
Specific industry operational experience (e.g., medical devices require CFDA filing)
Completeness of the information management system
Historical Dispute Resolution Cases
6. How is the fee structure for entrusted export agency composed?
The typical pricing model consists of three tiers:
Basic service fee: Charged at 0.6%-1.2% of the export amount.
Presentation of L/C documents: 800 - 1500 yuan per order
Agency for export tax rebate: 5% - 8% of the tax rebate amount
: Including:
Special Document Processing Fee
Express customs clearance fee
Overseas customs clearance assistance fee
Fund Occupancy Fee: Funds cost related to financial services such as forward exchange settlement
7. How to ensure fund security under the agency export model?
At the contract level:
Sign the "Tripartite Payment and Receipt Agreement" to clarify the fund flow path.
Request the agent to provide a bank performance guarantee.
Using blockchain technology to trace fund flows
8. What is the difference between entrusted agency export and foreign trade comprehensive services?
There is an essential difference in the depth of service between the two:
Service Scope: Foreign trade comprehensive services include value-added modules such as supply chain finance.
Responsibility Boundary: Comprehensive service enterprises bear greater risk control responsibilities.
Supervision Requirements: Comprehensive service enterprises must comply with the special provisions stipulated in Announcement No. 35 of 2017 issued by the State Taxation Administration.
9. What are the new developments in the entrusted agency export policies for 2025?
In accordance with the spirit of the Ministry of Commerce's 2024 Foreign Trade Work Symposium, two important measures are expected to be introduced:
Establish a tiered management system for export agency enterprises.
Implement the electronic agency agreement filing system
10. What basic materials are required for choosing an export agency model?
Enterprises must prepare four major categories of documents in advance:
Main qualification documents (business license, legal person ID card)
Production Capacity Certificate (Factory Lease Contract, Equipment List)