Home»Agency Services»Newcomers to foreign trade, do you really understand the risks of export with purchased documents?
foreign tradeNewcomers often ask: My business volume is not large now. Is it really necessary to apply for the right to export? This question seems simple, but it involves considerations of compliance, cost - effectiveness, and long - term development. Today, lets talk about this topic and help you clarify your thinking.
The gray area of export by purchasing export documents:看似方便, but actually full of hidden dangers
Foreign exchange verification difficulties
: In the case of export by purchasing export rights, the foreign exchange you receive cannot be normally verified. This means that there may be problems with your cash flow, and over time, the financial accounts will also become chaotic.Tax rebate issues
: Export by purchasing export rights cannot enjoy the countrys tax rebate policy. For foreign trade enterprises with meager profits, this is undoubtedly a significant loss.So, although export by purchasing export rights may seem convenient, in the long run, it may bring you more troubles.
Many people think that applying for export rights is a very complicated thing, but it is not. Now many intermediary agencies can help you handle it quickly at a low cost. Generally speaking, applying for export rights mainly includes the following steps:Industrial and commercial changeExport Drawback: Add the business scope of import and export of goods or import and export of goods and technologies to the business license.
Customs registration
Applying for the right to export: Is it really that difficult?
: Register as an importer and exporter of goods at the Chinese customs.
Foreign exchange administration bureau filing: Open a foreign exchange account and register in the list of enterprises for foreign exchange receipts and payments.import and exportElectronic port card
What foreign trade problems can professional export agency services actually solve?: Apply for a Chinese Electronic port IC card for customs declaration, tax rebate and other operations.
The whole process is actually not complicated, and intermediary agencies can usually help you complete it within 1 - 2 months. So, applying for export rights is not an unattainable thing.Although applying for export rights itself is not difficult, the real difficulty lies in the subsequent operation. Foreign trade business involves many professional links, such as customs declaration, logistics, foreign exchange verification, tax rebate, etc. If you dont have foreign - trade - savvy order - followers and financial personnel, you may encounter the following problems:
Order - following problems: The order - following work of foreign trade orders is very cumbersome. From production to shipping, and then to customs declaration and logistics, any mistake in any link may lead to the failure of the order. Without professional order - followers, you may be in a rush.
Financial problems
The real difficulty: Supporting foreign trade talents
: Foreign trade finance is much more complicated than ordinary finance, involving foreign exchange verification, export tax rebate, exchange rate risk management, etc. If you are a manufacturing enterprise, foreign - trade - savvy financial personnel are even more indispensable. Otherwise, you may lose a lot of profits due to financial problems.
So, applying for export rights is just the first step, and the subsequent operation is the real challenge.A good helper during the transition period:
If your current business volume is not large and you dont want to take the risk of exporting by purchasing export rights, then finding a reliable export agency company may be a good choice. The export agency company can help you solve the following problems:Compliant export
: The agency company has complete export qualifications and can help you complete the export procedures in a compliant manner, avoiding the risks of exporting by purchasing export rights.
Foreign exchange verificationExport Representation(1) Port of Departure and Port of Destination:
: By exporting through the agency company, you can normally receive foreign exchange and conduct verification, and the cash flow is clearer.
Compliant Export: The agency company has a complete export qualification and can help you complete the export procedures in compliance, avoiding the risks of export through purchasing export documents.
Foreign Exchange Verification: By exporting through the agency company, you can normally receive foreign exchange and conduct verification, making the capital flow clearer.
Tax Rebate Service: The agency company can help you handle export tax rebates to ensure that you can enjoy the national policy dividends.
Settle Each Business TransactionYou can issue a VAT invoice to the agency company and include the profit in the invoice. The agency company will pay you the tax rebate and profit as the payment for goods, making each business transaction clear and understandable.
By exporting through an agency company, when the business volume is not large, you can focus on developing customers and products while accumulating foreign trade experience.
: Export by purchasing export rights is essentially non - compliant. Although it may not be inspected in the short term, once targeted by the customs or tax authorities, the consequences may be serious. At the least, there will be fines, and at the worst, it will affect the enterprises credit and may even be blacklisted.
The development of foreign trade business is a gradual process. When the business volume is not large, choosing export agency services is a wise choice. It can help you complete exports in compliance, accumulate experience, and avoid unnecessary risks at the same time.
Remember, foreign trade is a marathon, not a sprint. Only by making steady progress can you go further. I hope this article can help you clarify your thinking and find a development path suitable for you!