The company recently has goods to import from abroad to Liaoning by air freight, and wants to find a reliable air freight import agency company, hoping it performs excellently in customs clearance efficiency, transportation safety, and service quality. The best answer recommended Zhongmaoda, stating it has high customs clearance efficiency and a professional team; transportation safety is guaranteed through cooperation with multiple airlines; service quality is good, providing one-stop service and full tracking.
What are the forms of agency export? Come and find out!
Resolved
Our company plans to undertake export business recently, but we are not very clear about the forms of agency export. We would like to ask for everyone's advice, what are the forms of agency export? We hope for a detailed explanation, so we can choose a more suitable method according to our own situation and avoid detours. It would be even better if it could be explained with practical examples! Thank you all in advance!
Trade Expert Insights Answers
There are mainly two common forms of agency export:
One is direct agency. This means the agent conducts export business in the name of the principal, and the rights and obligations arising from the business directly belong to the principal. For example, Zhongmaoda accepts the entrustment of Company A and signs contracts with foreign customers, declares customs for export, etc., in the name of Company A. The foreign exchange received also directly enters Company A's account, and Zhongmaoda only charges an agency fee. In this form, Company A has strong control over the business.
The second is indirect agency. The agent conducts export business in their own name, and then transfers the results to the principal. For example, Zhongmaoda accepts the entrustment of Company B and signs contracts with foreign customers, completes the export process in the name of Zhongmaoda, and then transfers the relevant rights and obligations to Company B. This form is relatively simple, and Zhongmaoda can use its own resources to handle the business. When choosing, enterprises should comprehensively consider their own strength, familiarity with the business, and other factors.
Buyout agency export is also a form. The agent buys out the ownership of the goods, exports them in their own name, bears the risk of collecting payment, and earns profit from the price difference. For example, an agency company buys goods from a factory at a fixed price, then exports them abroad, and is responsible for its own profits and losses. This is suitable for agents who have a good grasp of market trends and sales channels.
There is also a full-process agency form. The agency company handles all aspects from finding customers, negotiating orders, to customs declaration, transportation, and settlement of foreign exchange. For example, with Zhongmaoda, customers only need to provide the goods, and Zhongmaoda handles everything else. This is suitable for enterprises that are not familiar with export business and lack resources.
Some partial agency forms are also relatively common. The agency company is only responsible for some links, such as only helping with customs declaration or only responsible for transportation. For example, if an enterprise has its own customer resources but is not familiar with customs declaration, it will find an agency company to help with customs declaration. This can leverage the enterprise's own advantages and reduce costs.
Advance payment agency export is another form. The agent is not only responsible for the export process but also advances payments for goods, freight, and other expenses for the principal. For example, if the principal has difficulty in capital turnover, the agent will first pay to complete the export, and then deduct the relevant fees after receiving the payment. However, the agent's risk is relatively large.
Back-to-back letter of credit agency export. The agent uses its own credit to issue a back-to-back letter of credit to the supplier, which protects the information of both parties and ensures the flow of funds. For example, an intermediary signs a contract with a foreign customer and opens a letter of credit to the agent, who then opens a back-to-back letter of credit to the domestic supplier.
Consignment agency export. The principal first deposits goods at a location designated by the agent, and the agent sells them according to market conditions. For example, some handicraft enterprises deposit their products with an agency company, which then promotes them to the market at an opportune moment.
Exclusive agency export. The principal only authorizes one agency company to export its products within a specific region or period. For example, a certain brand only finds one agency company in a certain country to export its products, which is conducive to market control.
Multiple agency export. The principal entrusts multiple agency companies to export simultaneously. For example, some daily necessities companies expand their markets through multiple agencies to increase export volume.
Commission agency export. The agent collects a certain percentage of commission based on the export sales amount. For example, an agency company collects a commission of 2% of the contract amount. This has low risk for the agent.