1. What specific responsibilities does a foreign trade agency company undertake?

Professional foreign trade agency companies primarily offer the following core services:

• Customs process management: Including HS code classification, preparation of customs declaration documents, customs declaration, and exception handling.
• Document compliance processing:
  • Preparation of trade documents such as commercial invoices, packing lists, and certificates of origin.
  • Submission of documents under Letter of Credit and bank negotiation procedures
• Tax agency services:Export tax refundDeclaration, foreign exchange verification, and tax filing
• Logistics coordination: Booking, transportation insurance, and destination port customs clearance support

II. How does fund flow operate under the agency export model?

Typical fund flows consist of three stages:

• The customer prepays 30%-50% of the payment to the agent company's escrow account.
• The agency company pays the factory's payment based on the proforma invoice.
• The remaining balance shall be settled within 45-60 days after the shipment of goods (subject to payment terms).

The new cross-border payment regulations for 2025 require all foreign exchange transactions to be processed through licensed institutions. It is recommended to choose an agency company with foreign exchange transaction qualifications.

III. How to choose a reliable foreign trade agency company?

The focus is on six key dimensions:

• Qualification documents: Customs AEO Certification, Foreign Exchange Administration Filing Record
• Industry Experience: At least 3 years of operational cases in the same product category.
• Wind control system: Has a comprehensive trade compliance review system been established?
• Informatization level: Real-time Inquiry System for Customs Declaration Progress and Tax Refund Status
• Service networks: Do the major exporting countries have cooperative customs clearance agents?
• Cost transparency: Does the agency fee include derivative costs such as inspection and document amendment?

IV. What Are the Hidden Costs of Export Agency?

In addition to the agreed agency fee (typically 0.8%-1.5%), special attention should be paid to:

• Amendment fees due to document discrepancies (RMB 200-500 per shipment)
• Demurrage charges when cargo is not picked up at the destination port (starting from $80 per day for Middle East routes).
• Foreign exchange rate locking service fee (approximately 0.3% of the transaction amount)
• Special supervision certificate processing fee (e.g., ECFA Certificate of Origin at $50 per copy)

V. How to AvoidExport tax refundRisks?

It is recommended to follow the "Three Single Consistency" principle:

• The difference between the customs declaration amount and the VAT invoice amount should not exceed 5%.
• The foreign exchange receipt must match the currency specified in the export contract.
• The logistics tracking information must fully match the declared details.

In 2025, the upgraded "Smart Tax Refund 2.0" system by the State Taxation Administration will automatically verify 14 data indicators, including ocean bills of lading and VAT input composition.

6. Is an export agency required to have self-operated export qualifications?

Under the compliance agency model:

• Production enterprises are exempt from the requirement of filing as foreign trade operators.
• The agency must possess:
  • Customs Registration of Consignors and Consignees
  • Foreign exchange administration directory enterprise qualification
  • 47. Export tax rebate (exemption) filing

However, when it comes to strategic materials, dual-use items, and other special commodities, the exporter is still required to apply for the corresponding licenses.

7. How is the ownership of goods defined?

Special attention should be paid to the contract terms:

• It is recommended to adopt the "disclosed agency" model, reflecting the agency relationship in the "domestic consignor" field of the customs declaration form.
• The shipper on the bill of lading should display the name of the agency company, but it must be annotated with "AS AGENT FOR the actual cargo owner."
• The beneficiary of cargo transportation insurance must be consistent with the trade contract.

8. How to prevent international trade risks?

It is recommended to establish a three-tier prevention and control system:

• Cargo Risk：Insure under ICC(A) clauses, with the sum insured covering 110% of the cargo value.
• Funding risk: Adopt a payment method of 30% TT in advance + 70% irrevocable LC.
• Risk of compliance: Regularly verify updates to ECCN codes and technical standards of importing countries.

9. Is cross-border e-commerce suitable for agency export?

According to the new cross - border e - commerce supervision policy in 2025:

• The B2B business can still adopt the traditional agency model.
• B2C business must be declared through the Cross-Border E-Commerce Comprehensive Pilot Zone.
• Enterprises with annual exports exceeding $500,000 are recommended to apply for Advanced Customs Certification.

X. How to Choose Between Agency Export and Self-Operated Export?

Decision-making can be approached from three dimensions:

• Business scale: For annual export amounts below $3 million, an agency model is recommended.
• Product complexity: For goods involving anti-dumping and special safeguard measures, priority should be given to selecting professional agents.
• Talent pool: At least three professionals familiar with international trade, customs affairs, and taxation are required.