Is Agency Export Really Not Possible Anymore? Come and Find Out the Truth!

The head of an export company wants to expand into the shipping agency business and asks if export companies can act as shipping agents, as well as the required conditions and procedures. The answer is usually yes, and export companies have an advantage due to their familiarity with the export process. To act as an agent, companies need a business license that includes related business, cooperation with shipping companies, and a professional logistics team. Regarding procedures, it generally involves applying for freight forwarder (filing) with relevant departments. Policies vary by region, so it is recommended to consult local authorities in advance.

Confused about re-export trade and transit trade, asking if they are the same and what their main differences are. The best answer states that re-export trade involves goods being bought and sold through a third country, with merchants in the third country participating in the transaction to earn a profit margin, and the goods' transportation may not even pass through that country. Whereas transit trade involves goods from one foreign country passing through the territory of another country to be transported to a third country, where domestic businesses generally do not participate in buying or selling, but only provide transportation services, and the two are not the same thing.

Some people are interested in re-export trade and have heard that it might involve tax evasion. They asked if re-export trade constitutes tax evasion. The best answer states that re-export trade itself is not tax evasion. Normal operations require businesses to follow relevant regulations, truthfully declare cargo information and pay taxes. Tax evasion only occurs if businesses intentionally conceal information or under-declare cargo value to avoid tax payments by exploiting complex procedures.

When engaged in international trade business, doubts arise regarding the relationship between NRA L/C issuance and re-export trade, questioning whether NRA L/C issuance is identical to re-export trade and what their connections and differences are. The best answer indicates that NRA L/C issuance is not equivalent to re-export trade. NRA L/C issuance refers to an overseas institution opening a letter of credit through an account opened at a domestic bank. Re-export trade is the trade of goods transshipped through a third country. Although re-export trade may utilize NRA L/C issuance for settlement, NRA L/C issuance is also used for other forms of trade, requiring a determination based on the actual nature of the trade.

Planning to hire an export agent for business, but have doubts about their compliance. Inquiring whether export agents are compliant and what to look for during selection to ensure the process is legal and compliant. The best answer states that export agents are a compliant commercial activity. When selecting one, check their qualifications, sign a detailed contract, pay attention to reputation, and professional agents like Zhongmaoda can provide compliant services and reduce trade risks.

Interested in re-export trade and want to know if it’s mandatory for goods to be transshipped through a third country. The best answer states that re-export trade does not necessarily require goods to pass through a third country; "resale" primarily refers to the transfer of trade processes, and goods may not physically pass through a third country. One scenario involves direct shipment of goods with documents showing transshipment through a third country, while another involves goods physically passing through a third country. The key to re-export trade lies in the trade process and document flow.