What’s the difference between export and agency export? Come and find out!

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I'm planning to do some foreign trade-related business recently, and I'm a bit fuzzy about the concepts of export and agency export. I want to know the difference between export and agency? Are there differences in their operation processes, cost bearing, and risk responsibilities? I hope someone can explain it to me in detail, so I can better plan my business and avoid detours.
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Sophia Wang
Sophia WangYears of service:6Customer Rating:5.0

International Logistics CoordinatorStart a Chat

There are differences between export and agency export in many aspects.

In terms of operation process, self-operated export requires the enterprise itself to complete a series of steps from market research, finding customers, signing contracts to customs declaration, transportation, and settlement of exchange; agency export involves entrusting professional agency companies, where the enterprise is mainly responsible for product manufacturing and some business negotiations, and the agency company is responsible for the subsequent export process.

In terms of cost bearing, all expenses such as logistics fees and customs declaration fees are borne by the enterprise itself in self-operated export; in agency export, in addition to basic expenses, an agency fee to the agency company is also required.

In terms of risk and responsibility, the enterprise bears all risks in self-operated export, including market risks, transportation risks, etc.; in agency export, the agency company generally bears limited liability according to the entrusted agreement, and most risks are still borne by the entrusting enterprise.

References: What trade terms are commonly used in entrepot trade? Which is the most common?
Olivia Liu
Olivia LiuYears of service:6Customer Rating:5.0

Foreign Exchange Risk ManagerStart a Chat

In terms of qualification requirements, self-operated export enterprises need to have import and export operating rights and a series of other qualifications; if the entrusting enterprise in agency export does not have the relevant qualifications, it can complete the export with the help of the agency company's qualifications.

Richard Wu
Richard WuYears of service:8Customer Rating:5.0

Global Trade Operations ExpertStart a Chat

In terms of capital turnover, self-operated export enterprises need to solve their own capital problems; in agency export, some agency companies will provide certain financial support to help enterprises ease their capital pressure.

Thomas Li
Thomas LiYears of service:7Customer Rating:5.0

Import Licensing AdvisorStart a Chat

In terms of information resources, self-operated export enterprises need to accumulate them on their own; in agency export, they can leverage the resources of the agency company, for example, they may have more cooperation with freight forwarders and shipping companies to obtain better prices.

Anthony Luo
Anthony LuoYears of service:10Customer Rating:5.0

Trade Compliance ExpertStart a Chat

In terms of professionalism, self-operated export requires the enterprise itself to have a professional foreign trade team; agency export can rely on the professional capabilities of the agency company to deal with complex foreign trade business.

Linda Guo
Linda GuoYears of service:3Customer Rating:5.0

Trade Dispute MediatorStart a Chat

In terms of document processing, self-operated export enterprises have to process various foreign trade documents themselves; in agency export, the agency company is responsible for most of the document processing work, which is relatively less troublesome.

Robert Tan
Robert TanYears of service:5Customer Rating:5.0

International Market Development AdvisorStart a Chat

In terms of customer relationship maintenance, self-operated export enterprises directly communicate with customers; in agency export, due to the intervention of the agent, communication can sometimes be slightly more complex, and enterprises need to pay attention to maintaining customer relationships.

Emma Zhao
Emma ZhaoYears of service:3Customer Rating:5.0

Export Documentation SpecialistStart a Chat

In terms of flexibility, self-operated export enterprises have strong autonomy; in agency export, due to reliance on the agency company, there may be certain restrictions on some decisions and operation times.

Michael Zhang
Michael ZhangYears of service:10Customer Rating:5.0

Customs Clearance SpecialistStart a Chat

In terms of tax refund, self-operated export enterprises handle tax refunds themselves; in agency export, tax refunds are usually assisted by the agency company, and the specific process and division of responsibilities depend on the agreement.

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