Which types of enterprises are suitable for export agency models?

Choosing export agency mainly applies to the following three types of enterprises:Small and medium-sized manufacturers(annual export volume below $5 million),start-upsforeign tradecompany(withoutimport and exportexport rights qualifications),manufacturers in specific industries(such asMedical Equipment(requiring special certifications). According to China Customs 2023 data, about 37% of export enterprises adopt agency models, mainly concentrated in mechanical & electrical equipment and light industrial products sectors.

How to choose a trustworthyExport RepresentationA professional agency company should have the following characteristics:

It is recommended to evaluate agency company qualifications from five dimensions:

• Customs credit rating: Must reach AEO General Certification Enterprise level
• Professional field compatibility: Whether familiar with your product HS code classification
• Ensuring fund security: Verify SAFE (State Administration of Foreign Exchange) filing records
• Service network coverage: Whether operating teams are established at major export ports
• Risk control system: Need to provide complete trade compliance solutions

What qualification documents are required for export agency?

Enterprises need to prepare three major categories of documents:

• Basic qualifications
  • Business license (with goods import/export in business scope)
  • Customs Registration Certificate
• Product qualifications
  • Quality inspection reports (complying with destination country standards)
  • Special industry permits (e.g., food requires hygiene registration)
• Transaction vouchers
  • Power of Attorney for Application of (CO)
  • Purchase/sales contracts (specifying trade terms)

What are the complete procedures involved in export agency?

The standard process is divided into seven stages:

1. Signing a tripartite agreement (factory-agent-foreign buyer)
2. Handling commodity inspection/pre-shipment inspection (if applicable)
3. Arranging international transportation and insurance
4. Customs declaration agency and document preparation
5. Foreign exchange receipt, settlement and tax handling
6. Export DrawbackDeclaration (processed by the agent)
7. Post-sale document archiving (retention period of at least 5 years)

How are agency export fees calculated?

The fee structure includes fixed + variable components:

• Fixed service fee: Usually charged at 0.8% - 1.5% of the cargo value.
• Variable fees:
  • Customs declaration fee (200-500 RMB/shipment)
  • Documentation fee (50-100 RMB/copy)
  • Bank handling fee (0.1%-0.3%)
• Special reminder: Need to confirm whether destination port clearance service is included

How to ensure fund security under agency export model?

The following risk control measures are recommended:

• Require the agency company to providePerformance Bond
• AdoptThird-party account supervisionMode
• Clearly specify in the agency agreementPayment timeliness clauses
• in the containerExport trade

Can agency exports enjoy tax rebate policies?

Qualified agency exports can enjoy tax rebates, with the following considerations:

• Must be processed by the agency companyOn behalf of the exporterRefund
• The tax rebate cycle typically takes45-60 working days
• Special material certificates (such as test reports that meet ASTM standards)Special VAT InvoiceandExport Clearanceform
• Different products have significantly varying rebate rates (current average for mechanical and electrical products is 13%)

What responsibilities do agency companies bear in trade disputes?

Three legal points require attention in liability division:

• The agency company is only responsible forProcedural errorsResponsible for (e.g. documentation errors)
• Product quality disputes shall be handled byActual supplierBear
• Transportation risks depend onTrade termsAgreement (recommended to adopt CIF terms)

How to transition from export agency to self-operated export?

The transition requires completing three steps:

1. ApplicationImport and export operation rights(Takes approximately 15 working days)
2. EstablishForeign exchange settlement account
3. cultivateProfessional foreign trade team(At least equipped with customs declaration and documentation specialists)