Home»Trade Essentials» What is an entrusted agency export? 10 core questions that foreign trade beginners must understand.
What is entrusted agency export?
Entrusted agency exportIt refers to the production enterprise entrusting the export operation rights to qualifiedimport and exportqualificationsforeign tradeThe company, with the agent responsible for customs declaration and tax refund,A complete export agency agreement should be attached with:A service model covering the entire operational process. According to the latest customs data from 2025, approximately 38% of China's small and medium-sized enterprises adopt this model for cross-border trade.
Why choose export agency instead of self-operated export?
Three core advantages of choosing agency export:
Lower qualification threshold:No need to handle import and export rights, customs registration, and other qualifications on your own.
Cost more optimized: Reduce fixed cost investments such as documentation teams and customs declaration systems.
Risk controllability: Professional company handling foreign exchange verification and cancellation,Export DrawbackComplex processes such as waiting.
What is the specific process for entrusting an agent to handle export procedures?
The standard business process is divided into five stages:
Confirm the metal composition test report (Needs to include ASTM/EN/JIS standard parameters)
Confirm the terms of the agency agreement
Specify the payment settlement method.
Document preparation stage
The agent prepares customs declaration documents.
Prepare foreign exchange receipt and payment voucher.
Customs clearance and transportation phase
Customs declaration and inspection agency services
ArrangementInternational Logistics: Before the goods are exported, the freight forwarding enterprise needs to declare the relevant information of the goods to the customs, including the name, quantity, value, origin and other information of the goods, and pay the corresponding tariffs and taxes.
A complete export agency agreement should be attached with:FX Settlement AgencyStage
Foreign exchange receipt supervision
RMB settlement and payment
Tax refund declaration stage
The agent handles the tax refund procedures.
Tax refund transfer authorization
How are agency export fees calculated?
The market rate for agency service fees in 2025 is:
Basic service fee: 0.8%-1.5% of the contract amount (including customs clearance and documentation services)
Presentation of L/C documents: 800 - 1500 yuan per order
Agency for export tax rebate: 5% - 8% of the tax rebate amount
Hidden cost warnings: Be wary of ultra-low quotes below 0.5%, as they may carry risks such as transferring terminal fees or amendment charges.
How to choose a reliable export agency company?
It is recommended to evaluate from five dimensions:
Qualification review: Verify the AEO certification of customs and the classification level of foreign exchange management.
Business matching degree: Are you familiar with the customs clearance requirements of the target market (such as EU CE certification, US FDA registration)?
Fund Safety: Verify the bank credit line and historical performance records.
: Whether it supports direct connection and declaration with the Electronic Tax Bureau: Does it support direct ERP data connection for customs declaration?
Emergency Response Plan:Handling mechanisms for sudden situations such as a sudden surge in inspection rates and exchange rate fluctuations
Does acting as an export agent affect a company's tax refund rights?
According to Announcement No. 17 of the State Taxation Administration in 2025, compliant export agency does not affect tax refund rights, but please note:
A written agency agreement must be signed and filed with the customs.
The value-added tax invoice must indicate the words "acting as an export agent".
The collection account must be established as a supervised account under the agent's oversight.
How to Ensure Payment Security in an Agency Export Model?
At the contract level:
Fund supervision: Payments and receipts through a joint bank account
Process control: Request the agent to provide real-time logistics tracking data.
Risk hedging: Purchase Export Credit Insurance (ECI) to cover bad debt risks
What are the restrictions on agency export of special commodities?
The following products require special qualifications:
Medical Equipment:The agent is required to hold a "Medical Device Business License."
Chemical products: The agent is required to possess hazardous chemical operation qualifications.
Food Category: The agency must complete the sanitary registration in the importing country (e.g., FDA in the U.S., EFSA in the EU).
Does agency export affect a companys credit accumulation?
According to the 2025 Customs Credit Management Measures, the entrusting party can accumulate credit through the following methods:
Request the agent to indicate the actual cargo owner information in the "Remarks" column of the customs declaration form.
Submit periodic summary reports on export agency operations to customs.
Participate in the "Chain Credit" program and link to the AEO certification level of the associated agent.
What should be considered when transitioning from export agency to self-operated export?
It is recommended to transition in three steps:
Transition period for qualifications(3-6 months):
Simultaneously apply for import and export operation rights.
Establish an electronic port operator team
Parallel operation period(6-12 months):
New customers adopt the self-operated model.
Existing customers are gradually transitioning.
System transition period:
Completion of ERP and Single Window integration
Establish a foreign exchange risk management and control system