Seeking to understand re-export trade economy, including its concept, operational methods, and distinctions from general trade economic models. The best answer defines re-export trade economy as an economic form arising from trade activities where goods from a producing country are transshipped through a third country to a consuming country. The producing country's goods are first shipped to the third country, which then resells them. The re-exporting country can leverage special advantages to profit. This model involves three main parties and more complex transportation routes.
Who is Responsible for Declaration in Agency Exports? Help Me Find the Answer!
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My company recently has a batch of goods intended for export through an agency, but we are unclear about the declaring party. I'd like to ask whether it is the principal or the agent who declares in agency export business? What regulations and procedures are involved in this? I hope to receive a professional answer to clearly understand what to do and avoid future troubles.
Trade Expert Insights Answers
In agency export business, declaration is generally handled by the agent. This is because the agent, as the party directly responsible for export operations, is more familiar with export procedures and declaration requirements. The agent needs to prepare a series of declaration documents, including customs declaration forms, packing lists, and invoices, according to relevant regulations, and truthfully declare the detailed information of the goods to customs.
However, the principal also needs to provide the agent with accurate goods information, such as the name, specifications, and value of the goods, so that the agent can complete the declaration work. If the principal provides incorrect information, it may lead to problems with the declaration. At the same time, the agent must strictly follow all customs regulations during declaration to ensure that the declared content is true, accurate, and complete. If the declaration is untruthful, the agent shall bear corresponding legal responsibilities.
If there are special agreements in the agency contract, the declaring party may also be determined by the agreement, but if there are no special agreements, declaration is conventionally made by the agent.
Agent declaration is more common because they are more professional in handling such matters, can efficiently complete the declaration process, and reduce the probability of errors.
From a practical operational perspective, agents have a more timely grasp of export declaration procedures and policy changes, so they usually handle the declaration.
Although the principal does not declare directly, they must cooperate with the agent, for example, by providing necessary documents, otherwise, it will affect the declaration progress.
During customs inspection and other stages, customs primarily liaises with the declaring party, which is the agent, so agent declaration facilitates communication.
Some principals believe they can also declare, but in reality, unfamiliarity with the process can easily cause delays; it is better to entrust it to the agent.
Agent declaration can uniformly coordinate all aspects of export, ensuring the smooth progress of the entire export process.
In terms of responsibility allocation, agent declaration also facilitates defining the attribution of responsibility when problems arise during the declaration process.