Why do small and medium - sized enterprises choose import and export agents?

Export goods agency is a complex process involving multiple steps. Below is a simplified overview of the main process:

Fund flow

Signing the Contract

- Customer signs sales contract with foreign buyer

- Customer signs procurement contract with domestic supplier

- Agency company may participate in the above contract signing, responsible for payment and customs declaration matters

Fund Flow

- Foreign buyer remits USD to agency companys account

- Agency company transfers the fundsIn 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.and transfers them to the domestic supplier

Production and Shipment

- Domestic supplier produces goods and issues VAT invoice

- Customer provides shipping details

- Agency company arranges logistics transportation

Inspection and Transportation

- If required, arrange statutory inspection of goods

– The logistics company packs and transports the goods to the designated port or customs location

Customs Declaration and Loading

– The agency prepares customs clearance documents

– After customs release, the logistics company is responsible for loading the goods onto the vessel

– The logistics company provides the bill of lading to the agency

Tax Refund Processing

– The agency applies to the tax authoritiesExport Drawback

– After receiving the tax refund, the agency deducts service fees

– The remaining tax refund amount is transferred to the client

In this process, the agency company plays a key role, coordinating all parties to ensure smooth progress at every stage, from contract signing to tax refund processing, without omission. The customer is mainly responsible for liaising with foreign buyers and domestic suppliers, providing necessary information. The entire process requires close cooperation among all parties to achieve successful export of goods.

LetZhongShen International Tradeprovide you with comprehensive support and services to help you stand out in international trade. If you have any questions about the export process, feel free to contact us for professional advice and solutions.