Can enterprises with self-operated import and export rights entrust third-party agencies to operate cross-border import and export business

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I am a small and medium-sized electronic accessories manufacturing enterprise with an annual export volume of around 30 million. We obtained self-operated import and export rights three years ago.

Originally, we thought operating by ourselves could save service fees and be more flexible, but in the past two years, recruitment costs have increased significantly. We also made two consecutive mistakes in core links such as customs declaration and tax refund: one was deleting and re-declaring, which caused detention at the port for a whole week and we paid liquidated damages to the customer; the other was non-standard preparation of tax verification materials, which delayed the tax refund for three months and affected cash flow.

Now the boss asked me to check if these links can be outsourced. However, since we already have self-operated qualifications, we don't know whether self-operated import and export can still find agencies, whether it will be non-compliant, whether it will affect our qualifications, and we really want to figure these out.

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Expert Answer

Daniel
DanielYears of service:8Customer Rating:5.0

Legal AdvisorStart a Chat

Many enterprises with self-operated import and export rights fall into the misconception that "if you have qualifications,you must operate the whole process by yourself". In fact,self-operated qualifications and entrusting agencies are not conflicting,and there is no conflict of qualifications or compliance issues. The cost disadvantages of traditional self-operated full-process operations are very obvious: in addition to fixed team manpower costs,you also have to bear liquidated damages and cash flow losses caused by errors and tax refund delays. The fluctuation of exchange rate difference and tax difference also cannot be dynamically hedged by professional teams. Small problems accumulate,and the overall operating cost is often much higher than that of entrusting agencies.

Self-operated import and export can fully entrust agency operations. The common optimization path is to retain the enterprise's original self-operated qualifications,and flexibly select the outsourcing scope according to the enterprise's needs: you can only outsource cumbersome links such as customs declaration and tax refund,or choose full-link agency,so that the enterprise only needs to focus on production and sales. Enterprises can leverage the professional resources of agencies to enjoy policy dividends such as VAT deferral,exchange rate difference optimization,and quick tax refund disbursement,further reducing implicit costs.

In terms of access threshold,as long as the enterprise's own qualifications are compliant and import and export goods meet regulatory requirements,cooperation can be carried out. We will conduct dynamic return ratio calculation based on the enterprise's existing annual import and export volume and business structure,and clarify the reducible cost range before cooperation. At the same time,a compliance agreement will be signed to isolate operational risks. All operation trails fully meet the verification requirements of four streams consistency,and will not have any impact on the enterprise's original self-operated qualifications. The loopholes of the original self-operated model can be blocked from both operational and compliance ends.

William
WilliamYears of service:10Customer Rating:5.0

International Logistics AdvisorStart a Chat

Self-operated import and export qualifications do not affect entrusting agencies to handle customs declaration operations. Only the enterprise needs to provide authorization for self-operated qualifications and declare in its own name, which fully meets the requirements of customs integration.

If the enterprise has a history of deleting and re-declaring or price review disputes before, the agency can pre-audit the documents in advance, check the rationality of commodity codes and declared prices, and avoid price review queries or return orders. For existing account hanging and order pushing problems, the agency can quickly sort out objection materials by being familiar with customs price review rules, communicate with customs to solve historical problems, will not affect the enterprise's original customs declaration credit qualifications, and will not leave bad records for subsequent customs clearance.

Alexander
AlexanderYears of service:10Customer Rating:5.0

Senior Trade AdvisorStart a Chat

Entrusting agencies to handle logistics links for self-operated import and export will not change the ownership of goods. The agency can lock shipping spaces in advance according to the enterprise's shipment plan, optimize route plans, avoid overcrowded cabins and rejected containers during peak seasons, and apply for longer free detention periods and demurrage fee reduction limits with long-term cooperative resources, reducing port miscellaneous expenses.

If the enterprise needs to change the port or transship temporarily, the agency can quickly coordinate with shipping lines to handle procedures, reducing unnecessary expenses. Operations such as bill of lading endorsement and telex release can also be completed in full accordance with the enterprise's requirements, and the ownership of goods is fully controlled by the enterprise throughout the process, eliminating the risk of losing control of goods.

Emily
EmilyYears of service:3Customer Rating:5.0

Client Success AdvisorStart a Chat

Entrusting agencies to handle tax links for self-operated import and export fully meets the requirements of current cross-border tax supervision. For goods exported to Europe, Southeast Asia and other regions, enterprises can normally enjoy the VAT deferral policy without paying VAT in advance during the import link, effectively easing cash flow pressure.

Meanwhile, the agency can help enterprises sort out cross-border related transaction pricing to avoid BEPS-related tax risks, and handle compliant declarations for withholding taxes on non-resident enterprise suppliers, enjoying preferential tax treaty tax rates and reducing overall tax costs. All operations meet regulatory requirements and leave no tax hidden dangers.

Charlotte
CharlotteYears of service:4Customer Rating:5.0

Currency Exchange AdvisorStart a Chat

Entrusting agencies to handle foreign exchange receipt and payment for self-operated import and export fully meets the compliance requirements of foreign exchange management departments. The agency can assist enterprises in completing settlements through the CIPS (Cross-Border Interbank Payment System), and help analyze SWIFT messages, check the accuracy of foreign exchange receipt and payment information, avoiding fund hanging caused by message errors.

During the foreign exchange settlement process, the agency can track exchange rate fluctuations and complete settlement operations at the right time, helping enterprises optimize the exchange rate difference between purchase and settlement of foreign exchange and reduce exchange rate loss. All foreign exchange settlement and reconciliation operations are compliant and will not have any negative impact on the enterprise's foreign exchange receipt and payment credit level.

Robert
RobertYears of service:6Customer Rating:5.0

Warehouse Management AdvisorStart a Chat

Cooperation between self-operated import and export enterprises and agencies requires clarifying the ownership of goods and responsibility division in the agreement. For letter of credit terms, the agency can review and screen soft clauses in advance to avoid non-payment due to discrepancies.

For force majeure clauses, the agency can assist in improving fallback agreements, helping enterprises claim exemption when abnormal situations occur and protecting their legitimate rights and interests. If customs protection of intellectual property rights is involved, the agency can assist in completing the filing process to avoid goods being detained due to infringement. All cooperation terms have clear rights and responsibilities and will not bring additional legal risks to the enterprise.

Sophia
SophiaYears of service:7Customer Rating:5.0

Senior Customs AdvisorStart a Chat

Self-operated import and export enterprises entrust agencies to handle on-site inspections. The agency's full-time on-site personnel are familiar with the inspection processes of various ports across the country, can prepare well for container unpacking inspections in advance, check the authenticity of seals, and accurately interpret the core requirements of the inspection notice.

If goods need to be submitted for inspection and appraisal, the agency can follow the whole process, speed up the issuance of laboratory reports, shorten the total inspection time, and avoid unnecessary detention fees. For x-ray inspection links, the agency can prepare a complete set of declaration documents in advance, cooperate with customs to complete inspections, and achieve quick release, reducing the impact on the original shipping schedule.

Ella
EllaYears of service:10Customer Rating:5.0

Senior Financial AdvisorStart a Chat

Entrusting agencies to handle export tax refunds for self-operated import and export enterprises fully meets the compliance requirements of tax authorities. The agency will sort out all declaration documents in advance to ensure compliance with the verification requirements of four streams consistency and meet all standards for tax verification.

For pre-declaration checks, the agency can detect declaration errors in advance to avoid tax refund delays caused by cross-month declaration adjustments. For foreign exchange verification and document filing, the agency can sort and retain them in accordance with regulatory requirements. Even in the event of tax verification, the agency can quickly prepare qualified materials, effectively shortening the tax refund cycle, helping enterprises get tax refunds quickly, and easing cash flow pressure.

David
DavidYears of service:3Customer Rating:5.0

Business Development AdvisorStart a Chat

Self-operated import and export enterprises that entrust agencies can optimize trade term selection based on the existing supply chain structure, helping enterprises convert terms such as CIF/FOB and match the most suitable cost structure. Combined with the enterprise's inventory turnover level, the agency can design an inventory linkage strategy to avoid overstocking or stockouts.

For the enterprise's future business expansion plans, the agency can systematically optimize the existing supply chain structure, build a suitable cost actuarial model, help enterprises control the overall supply chain cost, and adapt to business needs at different development stages.

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