A Hong Kong company engaged in re-export trade does not know how to issue a bill of lading and asks about the process, required documents, and precautions. The best answer states that the process includes confirming cargo details and shipping terms, booking space, submitting shipping instructions, verifying the draft, and issuing the original bill of lading. Required documents include commercial invoice and packing list. It is important to ensure that the bill of lading information is consistent with the trade contract and other documents to avoid discrepancies that could affect settlement and cargo delivery.
Whose Export Trade Volume is it When Using an Agent? Come and Find Out!
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Our company plans to use an agent for export trade, and now we have a question: whose trade volume is generated through agency export? Does it count towards the principal, i.e., our company, or the agent? We feel this is quite important for our subsequent business development, policy support, and other aspects. We hope those in the know can help us answer, thank you very much!
Trade Expert Insights Answers
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
The attribution of trade volume in agency export needs to be viewed on a case-by-case basis. Generally, in agency export business, the trade volume counts towards the principal. This is because the principal is the actual owner of the goods and the substantive operator of the export business, bearing the risks of ownership and export-related responsibilities. The agent only provides agency services and receives agency fees, and is not the actual creator of the trade volume.
For example, if Zhongmaoda acts as an agent for Company A to export a batch of goods worth US$1 million, even if Zhongmaoda is responsible for customs declaration, transportation, and other procedures, the goods belong to Company A. Therefore, this US$1 million trade volume counts towards Company A. From the perspective of policy support, many policies target actual exporting enterprises. If the trade volume counts towards the principal, it helps the principal obtain relevant policy benefits. From a business development perspective, the principal can better assess business scale and secure more resources based on trade volume data. However, if there are special agreements between the parties, those agreements will be followed.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Generally, it counts towards the principal. After all, the principal is the owner of the goods, and the agent is just helping to handle things. The trade volume naturally cannot be counted towards the agent.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
I think it counts towards the principal. It's like you ask someone to help you sell something. The goods being sold are yours, and the sales volume definitely counts towards you. Agency export trade volume is the same.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
It's highly likely to count towards the principal. The agent is merely assisting and cannot overshadow the principal. The principal leads the export business, so the trade volume should rightfully belong to the principal.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Usually, it counts towards the principal. The agent only provides services, similar to an intermediary role. The main business belongs to the principal, so the trade volume also goes to the principal.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
It definitely counts towards the principal. The principal is the core of export trade, and the agent only provides professional assistance. The trade volume naturally counts towards the principal.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
In general, it counts towards the principal because the principal bears the main risks, while the agent merely completes the agency tasks as required. The trade volume is more closely related to the principal.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
It mostly counts towards the principal. The agent is like a helper, and the principal is the subject of the export business. Counting the trade volume towards the principal helps to reflect the true business situation.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
In most cases, it counts towards the principal, as the principal is the leader of the entire export trade, and the agent only executes some tasks. It is reasonable for the trade volume to count towards the principal.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Normally, it counts towards the principal. The principal has ownership and control over the exported goods, while the agent merely assists in the operations. Therefore, the trade volume naturally belongs to the principal.