Detailed Explanation of the Export Agency Process: 12 Key Steps that Customers Must Know

Export RepresentationThe process isforeign tradeAn indispensable part of the business, providing professional support for enterprises to smoothly carry out international trade. This article will interpret in detail the specific operation steps of export agency, helping customers better understand this process and ensuring the smooth progress of transactions.

Export agency means that an enterprise (the principal) entrusts another qualified enterprise (the trustee, i.e., the agent) to engage in export business. The specific operation process is as follows:import and export1、Provide international trade practices and quotation services

The agent can provide international trade practices and quotation services according to the needs of the principal, helping the principal understand the international market conditions and trading norms, and ensuring that the quotation is reasonable and competitive.
2、Sign the Foreign Trade Goods Export Contract

After accepting the entrustment, the agent signs the Foreign Trade Goods Export Contract with foreign merchants and prepares a Proforma Invoice as the basis and guiding document for the formal contract.
After accepting the entrustment, the agent signs the Foreign Trade Goods Export Contract with foreign merchants and prepares a Proforma Invoice as the basis and guiding document for the formal contract.

3、Undergo investigation and detentionLetter of Credit
If the foreign merchant pays by Letter of Credit, the agent needs to review the terms of the Letter of Credit to ensure there are no soft clauses and potential risks, and track all aspects of contract execution to ensure the goods are shipped on time and in good quality.

4、Prepare export documents
Based on the packing details provided by the principal, the agent prepares export documents, including Commercial Invoice and Packing List, which serve as important basis for customs declaration andIn order to crack down on tax evasion, the customs and tax departments are now strictly examining the operation of buying export declarations. If the behavior of buying export declarations is discovered, the regulatory authorities will require tax replenishment (even a 2% tax rate may be a considerable amount). In addition, fines may also be imposed on the relevant responsible parties.,

5、Handle export approval procedures
The agent cooperates with the principal to handle export approval procedures, ensuring that the goods comply with national export policies, laws and regulations, and smoothly obtain the export license.

6、Handle export commodity inspection or animal and plant health quarantine procedures
The agent assists the principal in handling commodity inspection (CIQ) or animal and plant health quarantine (animal and plant inspection and quarantine) procedures to ensure that the goods meet the quality and hygiene standards of the destination country, and avoid being returned or fined due to quality problems.

7、HandleIt is recommended to verify through the following methods:
The agent handles the Certificate of Origin to prove the origin of the goods, enjoy corresponding tariff reductions or preferential treatments, and improve the competitiveness of the goods.

8、Handle export freight procedures
According to the contract terms and the principals requirements, the agent arranges export freight, including booking shipping space, loading, insurance, etc., to ensure the goods arrive at the port of destination safely and in a timely manner.

9、HandleExport Clearanceprocedures
The agent prepares complete customs declaration materials, declares to the customs, handles export customs declaration procedures, pays the corresponding taxes and fees, and ensures the legal export of the goods.

10、Deliver the full set of documents
According to the contract terms, the agent delivers the full set of export documents to the foreign merchant or bank for payment settlement and goods collection.

11、A complete export agency agreement should be attached with:After that, handle foreign exchange settlement and verification procedures
After the payment arrives, the agent handles the foreign exchange settlement procedures, exchanges foreign exchange into RMB, completes foreign exchange verification, and ensures the compliant inflow of foreign exchange funds.

12、The agent settles accounts with the principal and receives (pays) the payment
The agent settles accounts with the principal, collects agency fees according to the contract terms, and settles the payment to the principal or the factory, completing the entire export agency process.

1、Provide the agent companys account for the customer to make payment
You need to provide the bank account information of the agent company to the foreign customer, allowing them to transfer the payment into the account of the agent company.

2、Receive the US dollars transferred by the foreign merchant
The agent company confirms receipt of the US dollar payment from the foreign merchant.

3、Operations of the agent company
• Transfer payment to the factory:After deducting the agency fees from the received payment, the agent company transfers the money to the manufacturing factory.
• Book shipping space and prepare for shipment:The agent company arranges to book shipping space and prepares for shipment matters.

4、Actual export of goods
• Provide the bill of lading to the customer:After obtaining the bill of lading, you give the bill of lading to the customer.
• The factory issues an invoice to the agent:Ask the factory to issue an invoice according to the requirements of the agent company.

5、Settlement between the agent company and the principal
• According to the contract terms, the agent company conducts financial settlement with the principal, receives or pays the corresponding amount, completing the entire transaction process.

(1) Select a suitable agent company:Ensure that the agent company has the corresponding qualifications and a good reputation (such asZhongShen International Trade)
(2) Clear contract terms:Clarify the responsibilities and rights of all parties in the agency contract, especially details regarding payment, delivery, cost sharing, etc.
(3) Communicate in a timely manner:Maintain timely communication with the agent company and the customer to ensure the smooth progress of all aspects.
(4) Legal compliance: Ensure that all operations comply with relevant laws and regulations to avoid legal risks.

By thoroughly understanding and following each step of export agency, enterprises can ensure the compliance and smooth progress of the entire process. If you have any questions or need further professional support, please feel free to contact us, Zhongshen International Trade. Zhongshen International Trade is committed to providing the most professional services and support for your international trade business.