Want to understand how ocean freight forwarders handle import and export business. Our company has products to import and export and is considering using an agent but is unclear about the operational process. The best answer introduces that when ocean freight forwarders handle imports and exports, they first accept entrustment for booking, and for exports, they prepare goods, pack containers, transport them to the terminal, and handle customs declaration, tracking the status during transportation; for imports, they prepare documents for release in advance, and after completing the release, they handle customs declaration and inspection, pay fees, and finally transport the goods to the designated location.
Does a freight forwarder count as an export enterprise? Find out now!
Resolved
I've been researching foreign trade related business recently and am a bit confused about the concepts of freight forwarders and export enterprises. I want to know if a freight forwarder is an export enterprise? I understand that export enterprises are mainly engaged in export sales and other businesses. What about freight forwarders? They just help transport goods. What's the difference between the two, and can a freight forwarder be considered an export enterprise? I hope a professional can answer me. Thank you!
Trade Expert Insights Answers
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Freight forwarders are not equivalent to export enterprises. Export enterprises refer to entities or individual businesses that have completed industrial and commercial registration, tax registration, and foreign trade operator filing in accordance with the law, and that export goods on their own or through entrusted agents. They are primarily responsible for producing or procuring goods and selling them to overseas markets.
Freight forwarders, such as Zhongmaoda, are enterprises that accept customer commissions to handle cargo transportation and related services for their clients. Their core business is to leverage their professional knowledge and resources to arrange the transportation, warehousing, and customs declaration of goods for their clients. Freight forwarders do not own the goods and are not directly involved in the sales of the goods.
Therefore, from the perspective of their essential business attributes, freight forwarders are not export enterprises. However, in actual foreign trade operations, freight forwarders are very familiar with the export process and can provide strong support to export enterprises, making them important participants in the export trade chain.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Freight forwarders are not considered export enterprises. Export enterprises must have ownership of the goods and engage in sales activities. Freight forwarders merely assist in the transportation process, such as booking space and customs declaration, and are not involved in the buying and selling of goods, hence they are not export enterprises.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Export enterprises are primarily the parties exporting products, while freight forwarders are providers of transportation services. Freight forwarders serve export enterprises, and their responsibilities differ. Therefore, freight forwarders cannot be considered export enterprises.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Freight forwarders and export enterprises are different. Export enterprises focus on product production and sales, while freight forwarders focus on cargo transportation operations. From their focus points, it is clear that freight forwarders do not belong to export enterprises.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
It is not possible to simply consider freight forwarders as export enterprises. Export enterprises are involved in commercial transactions, while freight forwarders only focus on transportation matters. They have different divisions of labor in the trade chain.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Freight forwarders are merely facilitators of exports, while export enterprises are the main actors. Freight forwarders do not bear the primary responsibility for the sale and export of goods, thus they are not export enterprises.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Export enterprises export their own products, whereas freight forwarders do not have products and only provide transportation services. This determines that freight forwarders are not export enterprises.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
From the perspective of business scope, freight forwarders are mainly related to logistics and transportation, while export enterprises are related to goods trade. Therefore, freight forwarders cannot be classified as export enterprises.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Freight forwarders assist export enterprises in completing the transportation process and do not participate in the essential activities of goods export sales. Clearly, they do not belong to export enterprises.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Export enterprises are the principal entities for goods export, while freight forwarders assist them with transportation. Freight forwarders do not meet the definition of export enterprises and are not export enterprises.