The company intends to expand its overseas business, with products covering traditional manufacturing and emerging electronic products, and is asking which type of export agent is easier to work with. The best answer suggests choosing a general trade export agent, as its model is mature, policies and regulations are well-established, related supporting services are mature, and there are clear standards for foreign exchange settlement and tax refund processes, allowing for the use of professional agencies. Cross-border e-commerce export agent platforms, however, have complex rules and are less suitable for initial expansion.
How many agents are generally needed for FOB exports?
Resolved
Our company plans to export a batch of goods under FOB terms. We haven't engaged in this mode of trade before and are unsure about how many agents are generally needed to assist with related matters. I'd like to ask everyone, which types of agents are typically involved in FOB exports, what their respective responsibilities are, and how many agents are generally needed in total? I hope experienced friends can explain it to me. Thank you.
Trade Expert Insights Answers
In FOB exports, there are generally two main agents involved: a freight forwarder and a customs broker.
A freight forwarder is primarily responsible for booking, arranging transportation, cargo loading and unloading, and tracking during the transportation process. For example, they will select suitable shipping companies and schedules based on the cargo situation to ensure timely shipment of goods.
A customs broker focuses on customs declaration and clearance matters. They are familiar with customs policies and regulations, can accurately fill out customs declarations, submit relevant documents, and assist in the smooth customs inspection and release of goods.
In some cases, a freight forwarder also has customs brokerage qualifications. In such situations, one agent can handle multiple tasks including booking, transportation, and customs clearance. Therefore, if you choose a comprehensive agent, one is enough; if you hire separately, then two agents are needed.
Usually, two are enough. The freight forwarder is responsible for getting the goods on board, and the customs broker is responsible for customs clearance. If the freight forwarder can provide customs declaration services, one is sufficient and more convenient.
The number of agents for FOB exports is not fixed. For small companies with simple business, one agent who can handle both transportation and customs clearance is sufficient. For large companies with complex business, it might be better to hire separate freight forwarders and customs brokers to let professionals handle their respective tasks, so it might be two.
Generally speaking, you either find one all-around agent who handles everything, including transportation and customs clearance; or you find two, with a freight forwarder and a customs broker working in cooperation. It mainly depends on the company's own business needs and budget.
Actually, it mainly depends on the cargo situation and the complexity of the export process. For ordinary goods, finding a qualified freight forwarder who can handle transportation and customs clearance in one stop is sufficient. If the goods are special and require high customs clearance standards, you might need to hire separate freight forwarders and customs brokers.
You can first assess the difficulty of your cargo transportation and customs clearance. If it's simple, one agent will suffice; if you find the customs clearance procedures cumbersome and have special transportation requirements, hiring two separate agents would be more reliable.
The number of agents for FOB exports is not fixed. If you have some customs clearance capability yourself, you can just find a freight forwarder to arrange transportation; if you are not familiar with both customs clearance and transportation, you can find a comprehensive agent or separate freight forwarders and customs brokers.
I think if a company has a small volume of export business, finding one agent who can handle both transportation and customs clearance is cost-effective. If the business is large and complex, hiring two separate agents allows them to focus more on their respective tasks, leading to higher efficiency.
This depends on the actual situation. Companies new to this type of business, who are not very familiar with the process, might feel more at ease hiring two agents, handling freight forwarding and customs clearance separately. Experienced companies might find one agent sufficient to handle everything.
Generally speaking, you either have one comprehensive agent to handle everything, or you hire separate freight forwarders and customs brokers. If you have high requirements for either transportation or customs clearance, hiring separately can better meet your needs.