Connect & Solve
Trade Q&A
Is Import Business Equivalent to Import Agency? How to Define Core Differences and Boundaries Between the Two?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a small and medium-sized foreign trade enterprise focusing on high-end food import. Last month, I tried to import a batch of cheese from Europe by myself for the first time. I originally thought that import is either done entirely by myself or fully handed over to an agent.
However, when I operated by myself, I not only got stuck in the review link of the certificate of origin, but also was almost detained by customs because I was not familiar with customs valuation rules, and spent nearly 20,000 yuan on demurrage charges. Now I am very flustered.
I have always mistakenly thought that import and agency are the same thing, either fully entrusted or completely self-operated, but now I find that it does not seem to be the case? I would like to ask, is import equal to agency? What are the core differences between the two, and how should small and medium-sized enterprises like me without a professional compliance team choose to avoid making such low-level mistakes again?
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
First of all，we need to expose a common misconception in the industry: many enterprises confuse "import" with "import agency"，either believing that import must be fully entrusted to an agent，or thinking that self-import means completely independent of agency services，which is the core root of subsequent risks.
If you fall into this misconception，it will trigger a chain of negative reactions: for example，when you operated by yourself this time，your unfamiliarity with the review of the certificate of origin and customs valuation rules directly led to document discrepancy，port detention and high demurrage charges，it may also affect the customs credit rating of your enterprise，the subsequent import clearance efficiency will be greatly reduced，and in serious cases，you may even be included in the customs key monitoring list.
Physical risk isolation measures: It is necessary to clarify that "import" is a business behavior covering the whole chain of stock preparation，logistics，customs declaration and tax payment，while "import agency" is a service mode in which an enterprise entrusts a third party to complete part or all of the import links，the two are not equivalent concepts. Enterprises can split operation modules according to their own compliance capabilities. Small and medium-sized enterprises can entrust agents to handle professional links such as customs declaration and taxation，and control the cargo right and supplier docking by themselves.
Exclusive loss stopping tips: Adopt "modular responsibility division" clauses when signing the agency agreement，clarifying that the agent is only responsible for the compliance of the entrusted links，at the same time，complete document pre-review by internal staff or agents 3 days in advance to ensure that all documents are 100% consistent with customs declaration information.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
From the perspective of customs declaration link, when importing by yourself, the enterprise, as the "operating unit" on the customs declaration form, is directly responsible for the authenticity and accuracy of the declaration content. If there is a valuation dispute, the enterprise needs to communicate and provide evidence with the customs by itself.
If valid price basis cannot be provided, the customs will levy tax according to the estimated price, and even trigger the process of deleting the declaration form and re-declaring, which takes at least 3-5 days. When entrusting an import agency, the agency, as the "declaration unit", needs to assist the enterprise in preparing valuation supporting materials, such as original factory invoices, foreign exchange payment vouchers, trade contracts, etc. Some agencies with AEO advanced certification can enjoy the priority valuation channel, which can shorten the valuation dispute handling time to 1-2 days, greatly reducing the risk of port detention.
In addition, self-import enterprises need to have independent customs declaration qualifications. If they have not obtained the customs declaration right, they can only entrust an agent to complete the customs declaration operation, which is the core boundary between the two in the customs declaration link.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
In terms of logistics cargo right and cost control, self-import requires enterprises to directly connect with shipping companies and freight forwarders, and be responsible for the whole process of booking space, bill of lading confirmation, picking up containers after arrival, etc. If there is container rollover or space shortage during peak season, they need to coordinate with the shipping company for reallocation by themselves, and the container detention fee needs to be negotiated for reduction directly with the shipping company. Due to the weak bargaining power of small and medium-sized enterprises, the success rate of reduction is less than 30%. When entrusting an import agency, the agency can take advantage of its own logistics resource integration advantages to give priority to locking direct flight space.
If there is container rollover, it can coordinate transit space within 24 hours. At the same time, the annual agreement signed between the agency and the shipping company can enjoy a minimum 50% reduction of container detention fee. In addition, when importing by yourself, the title of the bill of lading must be the enterprise itself. If you need to transfer the cargo right, you need to complete the bill of lading endorsement by yourself. For agency import, you can choose "double-title bill of lading" according to the needs of the enterprise, taking into account the cargo right control and the invoicing needs of downstream customers.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
From the perspective of tax cost and compliance, self-import enterprises need to complete the payment of import value-added tax before the arrival of goods. If they fail to pay the tax in full and on time, they will not be able to pick up the goods, and need to pay a late fee of 0.05% per day.
Qualified import agencies can assist enterprises to apply for the VAT deferment policy, which does not require the payment of import value-added tax at the time of arrival, and can defer the tax to the VAT declaration period for deduction, which is equivalent to obtaining a 3-6 month free capital occupation quota. For enterprises with a monthly import volume of more than 500,000 yuan, they can save at least 20,000 yuan of capital cost every year.
In addition, when importing by yourself, enterprises need to complete tax declaration and voucher retention by themselves. If there is a declaration error, it will trigger tax inspection, while the agency can assist enterprises to complete tax compliance review, ensure the authenticity and compliance of import value-added tax deduction vouchers, and reduce tax risks.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
At the level of cross-border foreign exchange receipt and payment compliance, self-import enterprises need to complete foreign exchange purchase and payment operations directly through their own corporate accounts, and need to provide a full set of import documents to the bank, such as customs declaration forms, contracts, invoices, etc. If the documents are inconsistent, the bank will refuse to handle foreign exchange payment, resulting in the enterprise being unable to pay the supplier on time and triggering trade default risks. When entrusting an import agency, the agency can complete foreign exchange receipt and payment operations through its own compliance account.
For small and medium-sized enterprises without import and export rights, the agency can collect and pay foreign exchange on their behalf. Moreover, the agency is familiar with SWIFT messages and CIPS RMB cross-border payment processes, which can optimize the foreign exchange purchase time point, lock the optimal exchange rate, and save at least 1-3% of exchange difference cost every year. In addition, self-import enterprises need to complete the registration of foreign exchange receipt and payment directory and foreign exchange verification by themselves, while the agency can assist enterprises to complete foreign exchange compliance filing to ensure that foreign exchange receipt and payment operations meet the requirements of the State Administration of Foreign Exchange.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
From the perspective of legal responsibility and risk avoidance, when importing by yourself, enterprises need to directly sign trade contracts with overseas suppliers. If there are problems such as goods quality problems and delayed delivery, they need to negotiate claims with overseas suppliers by themselves. Due to the high cost of cross-border communication, the success rate of claims is less than 20%.
When entrusting an import agency, a tripartite trade contract can be signed. As an intermediary, the agency assists the enterprise in negotiating with overseas suppliers. If the supplier breaches the contract, the agency can use its own overseas resources to assist the enterprise in mediation through the local chamber of commerce, and the success rate of claims is increased to more than 60%.
In addition, when importing by yourself, enterprises need to bear the cargo right risk by themselves. If there is bill of lading fraud, they need to safeguard their rights through legal channels by themselves, while the agency can assist enterprises to review the qualifications of overseas suppliers and handle the cargo right transfer guarantee to ensure that the cargo right is always controlled by the enterprise before the arrival of the goods.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
In the customs on-site inspection link, self-import enterprises need to arrange special personnel to be present to cooperate with the inspection. If they are not familiar with the inspection process, the goods may be damaged due to the unqualified unpacking method, or the required documents for inspection cannot be provided in time, resulting in the inspection time extended to 3-5 days and additional storage costs.
When entrusting an import agency, the on-site specialist of the agency is familiar with the customs inspection requirements, can prepare the required documents for inspection such as certificate of origin and quality inspection report in advance, and guide the unpacking personnel to operate in accordance with customs specifications to avoid goods damage, and the inspection time can be shortened to 1-2 days. In addition, if the goods need to be inspected when importing by yourself, the enterprise needs to contact the testing institution by itself, while the agency can assist the enterprise to give priority to connecting with the testing institutions recognized by the customs, shorten the testing cycle, and ensure the timely release of the goods.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
From the perspective of supply chain structure and cost actuarial calculation, self-import is suitable for enterprises with an annual import volume of more than 5 million yuan and a complete compliance team. By integrating logistics, customs declaration and tax links, a fully independent and controllable supply chain system can be built, which can reduce the comprehensive cost by 5-8% in the long run.
For small and medium-sized enterprises with an annual import volume of less than 5 million yuan, entrusting an import agency can share the resource advantages of the agency, no need to invest in building a compliance team, and the comprehensive cost can be reduced by 3-5%. In addition, supply chain planning needs to be adjusted in combination with trade terms.
Self-import is suitable for FOB terms, and enterprises can control logistics costs by themselves, while agency import is suitable for CIF terms, and the agency can use its own logistics resource advantages to lock the optimal freight rate and further reduce logistics costs. At the same time, enterprises need to choose the import mode according to their own inventory strategy. If the JIT inventory mode is adopted, agency import is more flexible and can quickly respond to inventory demand.