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What Exactly is the Difference Between Export and Agency? How Should Foreign Trade Enterprises Choose?

What Exactly is the Difference Between Export and Agency? How Should Foreign Trade Enterprises Choose?

I. What is Self-operated Export? What isAgency export,?

Before discussing the differences between the two, we need to clarify the basic concepts:

  • Self - managed exportRefers to enterprises independently completing the entire process from customs declaration, logistics to foreign exchange collection, directly signing contracts with overseas buyers and assuming all trade risks.
  • Agency export,Means entrusting export procedures to a third-party company with import-export qualifications, where the agent serves as the contracting party responsible for customs clearance and settlement.

According to the 2024 Statistical Annual Report of China Customs, SMEs still account for 63% of export agency usage, but among enterprises with annual export volumes exceeding $5 million, self-operated exports account for as high as 82%.

II. Where are the Core Differences Between Self-operated Export and Agency Export?

Based on the practical experience accumulated by the author in Fortune 500 companies, three core differences are summarized:

  • Differences in legal entities
    • Self-operated export: The enterprise isExport customs clearanceThe operating unit on the document
    • Agency export: The agent appears as the declaring entity
  • Differences in cost structure
    • Self-operated exports require bearing fixed costs such as qualification maintenance and team building
    • Agency exports pay service fees per order (typically 0.8%-2.5% of the goods value)
  • Difference in Risk Bearing
    • Self-operated export enterprises bear all trade risks
    • Under agency model, responsibility division must be clearly stipulated in the agreement

III. How Should Foreign Trade Enterprises Choose the Model That Suits Them?

Illustrate adaptation solutions for different scenarios through two typical cases:

  • Case 1:A sanitary ware enterprise established its own export team after annual exports exceeded $3 million, achieving a 17% increase in tax rebate benefits within 3 years
  • Case 2:A cross-border e-commerce seller adopted agency export, saving 40% customs clearance time while focusing on core business to achieve 200% annual growth

Selection recommendations should be evaluated based on the following factors:

  • Enterprises annual export volume and growth expectations
  • Professional capabilities of existing foreign trade team
  • Policy complexity of target markets
  • Capital turnover and tax rebate requirements

IV. The Impact of Changes in the 2025 International Trade Environment on Model Selection

Current trends requiring special attention:

  • Changes in rules of origin under the deepening implementation of the RCEP agreement
  • Continuous optimization of cross-border e-commerce B2B export supervision policies
  • Upgraded trade compliance requirements against the backdrop of global supply chain restructuring

It is recommended that enterprises conduct annualtrade model health assessments, adjusting operational strategies in line with the latest policies. For enterprises planning to explore emerging markets in 2025, it is advisable to consider the agency model as a trial approach first.

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