Planning to get into the import business, you have doubts about "What does 'import agency package deal' mean?" and want to know if the agent will handle all import matters, the specific aspects, and potential hidden risks. The best answer states that an import agency package deal offers multiple or all import services at a fixed price, including finding suppliers, signing contracts, transportation, customs clearance, and tax payment. When choosing this service, it's important to select a good agent and clearly define the scope of services and fee details.
What Are the Risks of Import Agency, Do You Know?
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I've recently been considering engaging in import agency business, but I'm not very clear about the risks involved. I'd like to ask everyone: are there any risks in import agency? If so, what are the main areas they focus on? I hope experienced friends can explain it to me so I can have a better understanding and decide whether to enter this field. Thanks in advance!
Trade Expert Insights Answers
Engaging in import agency carries risks. Firstly, there are commercial risks, such as the principal having poor creditworthiness, leading to situations like delayed payments, which can result in losses for the agent. Secondly, there are market risks. The market price of imported goods can fluctuate sharply. If prices drop significantly during the import agency process, the principal might refuse to take delivery, and the agent would have to bear the risk of unsaleable goods. Furthermore, there are policy risks. Trade policies and tariff policies of various countries are constantly changing. If not kept abreast of, this could lead to issues like increased tariffs, affecting costs and profits. There are also goods quality risks; if the goods' quality does not comply with the contract, the agent may become involved in disputes. Therefore, when engaging in import agency business, it is essential to have a deep understanding and control over aspects concerning the principal, market, and policies.
Yes, there are risks. Goods may be damaged or lost during transit. If insurance wasn't purchased beforehand or if the insurance terms have loopholes, the agent might have to bear the losses.
Exchange rate fluctuations are also one of the risks. If the exchange rate changes significantly between the signing of the import contract and the payment period, it could reduce the agent's expected profit or even lead to losses.
Documentation risks should not be overlooked either. There are numerous documents involved in import customs declaration and other procedures. If issues like discrepancies in documents arise, the goods might not be able to clear customs smoothly.
Intellectual property risks need attention. If imported goods involve infringement, the agent might be held legally responsible.
Storage risks: If goods cannot be picked up in time after arriving at the port, the resulting storage fees could become a burden for the agent.
Import agency may also encounter force majeure risks, such as natural disasters or wars, which could affect aspects like cargo delivery.
Trade barrier risks should not be underestimated either. Some countries may temporarily impose trade barriers, affecting import operations.
There are also tax risks. Imports involve various taxes and fees. If calculations are incorrect or tax policies change, costs may increase.