Interested in acting as an agent to export Guizhou White Peony, but lack of experience and unsure how to start, asking for specific steps, required documents, and procedures. The best answer suggests conducting market research first, obtaining import and export rights and completing relevant filings, cooperating with manufacturers to ensure product quality, selecting good logistics, familiarizing oneself with trade rules, and preparing various documents such as commercial invoices.
Is Export Trade Agency Always Single-Titled?
Resolved
I recently plan to do export trade and found an agency company to help. During communication, the issue of titles was mentioned. Some said export trade agencies are usually single-titled, while others said double titles are possible. I got confused, is an export trade agency really single-titled? If it's single-titled, what are the benefits, and if not, what are the implications? I hope a professional can explain in detail.
Trade Expert Insights Answers
Export trade agencies are not necessarily single-titled; they can be divided into two situations: single-title and double-title.
Single-title refers to the name of the agency company appearing as both the operating unit and the shipping unit on the export declaration form. In this arrangement, the agency company is responsible for the entire export process, making operations relatively simple. For tax rebates, the agency company handles the process, and the funds are directly refunded to the agency company's account. The agency company then settles with the principal. This is less hassle and effort for principals who are not familiar with export procedures and tax rebate policies.
Double-title means the operating unit displays the agency company's name, while the shipping unit displays the principal's name. This allows the principal to participate in export matters to a certain extent, and the tax rebate is handled by the principal themselves, providing better control over the rebate process. The choice between single-title and double-title should be decided based on the principal's own situation, the cooperation model with the agency company, and their control requirements over tax rebates and other matters.
With a single title, the documents are relatively concise, which may lead to smoother customs clearance in some situations, as all documents have consistent titles, reducing potential trouble caused by title discrepancies. Moreover, the agency company handles all matters uniformly, exhibiting stronger professionalism.
Double titles also have advantages. The principal has a stronger presence in the export process. For principals with their own brands and customer resources, a double title can better protect their commercial image and provide more autonomy in tax rebate operations.
If the principal is not very familiar with export business, a single title is more suitable, as the agency company can provide a one-stop service. However, if the principal has export experience and is only leveraging the agency company's qualifications, a double title might be more appropriate.
Single-title involves relatively centralized foreign exchange collection, with the agency company responsible for all collections, which facilitates fund management. However, with a double title, the principal can also participate in the foreign exchange collection process, offering more room for independent arrangements.
From a tax perspective, tax rebates under a single title are handled by the agency company, which has more precise control over policies. Under a double title, the principal handles tax rebates themselves and needs to be very familiar with tax rebate policies to avoid errors.
The choice between single and double titles also depends on how the agency agreement is signed. Some agencies may prefer single titles for ease of management, while others may choose flexibly based on the principal's needs.
If export business involves certain special regulated areas, there may be differences in operational procedures and policy applicability between single and double titles, which should be understood in advance.
In terms of market promotion, a double title allows the principal to better showcase their brand, whereas a single title may weaken the principal's brand image to some extent.