Since the enterprise does not have import and export rights and foreign trade collection channels at the initial stage of foreign trade, it is a good choice to cooperate with foreign trade agents, borrow agent accounts to recover funds, and operate in the name of the enterprise. Foreign trade agents pay a small amount of fees. The agent will transfer the money to the enterprise, provide a set of program documents to support export, and return the tax refund to the enterprise. This is the most common business model of foreign trade agents.
The payment is directly sent to the agent’s account. The most important thing in cooperation with foreign trade agents is integrity. Try to sign an authorized trade agency agreement. Now there are many export agencies, and it is best to choose non self-employed pure agencies. It is not easy to develop overseas customers. It is particularly important to ensure the security of customer information.
The export operation process of foreign trade agency is as follows:
Collection: use the name and account of the foreign trade agent to issue an invoice to the customer, and the agent will notify you after receiving the payment.
Export goods: after the goods are completed, the agent will provide you with the export declaration form.
Invoice: provide VAT invoice to the agent as tax refund application.
Payment: transfer the collection to the agent after deducting the payment fees, agency fees and taxes.
Tax refund: the agent pays tax refund to the enterprise.
Each agency fee is different and must be negotiated by both parties when signing the contract. Generally speaking, foreign trade agency fees are more cost-effective than registering foreign trade companies and applying for import and export rights, especially in the initial stage of foreign trade, which solves the financial and material resources of enterprises.
The risks of cooperation with foreign trade agencies are also obvious. In this way, the payment is transferred to the agent’s account, and the customer information is also in the agent’s hands. Therefore, the strength and integrity of the agent company are highly required. Foreign traders should be cautious when choosing foreign trade agents. Similarly, when selecting an export agent, you need to keep the following points in mind: 1. Select a strong and honest local agent 2. Sign an authorized dealer export agreement and confidentiality agreement.
About the author