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How to Screen Compliant, Reliable Foreign Trade Agencies Suitable for Your Business Needs When Importing Goods?
or complex compliance issues.
clearance and fund security.
I am the owner of a small trading company in Shanghai engaged in imported frozen seafood, and I have been in this industry for exactly 1 year. The small agency I hired last month handled the entry animal and plant quarantine permit for a batch of my Argentine red shrimp incorrectly, leading to the goods being detained at Yangshan Port for 15 days.
I spent 80,000 yuan on port detention fees and container demurrage charges alone, and also lost a large chain catering client that I had cooperated with for 3 months due to delivery delay. Now I want to find a reliable agency again, but the quotes from agencies in the market range from 1‰ to 5‰. Some claim they can handle all documents on a one-stop basis, some say they have Class A customs qualification.
I am afraid of falling into traps again. Besides, I will import Australian king crabs next, which are highly regulated food requiring specific quarantine approval. I have no idea about this at all. Now I am worried about both cost overruns and compliance issues, and I do not know from which aspects to screen a suitable agency.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
First，it is necessary to expose common misunderstandings in the import agency industry: many customers give priority to agencies with quotations lower than the industry average，or credulously believe verbal promises of "all-inclusive document handling"，ignoring the core qualifications and practical operation capabilities of the agency.
If you fall into such misunderstandings，a chain of negative reactions will break out layer by layer: for example，an agency without food import filing qualification will lead to customs detention of goods due to incorrect reporting of quarantine categories. Just like the situation you encountered before，15 days of port detention will not only incur high port detention fees and container demurrage charges，but also trigger a customs dishonesty warning，affect the customs clearance efficiency of all your subsequent imported goods，and even make you lose core customers.
Physical risk isolation measures should start from three points: first，verify the Class A customs qualification of the agency and its food import customs clearance records in the past 12 months to ensure that it has practical operation experience in regulated food，second，require the agency to provide a pre-review mechanism for entry animal and plant quarantine permits to complete document verification 7 days in advance，third，visit the agency to check the size of its operation team，and avoid small affiliated agencies.
Exclusive loss reduction tips: when signing the entrustment agreement，clearly stipulate that "if customs detention is caused by document errors，the agency shall bear 120% of the port detention fees，container demurrage charges and customer liquidated damages"，and require the agency to provide third-party compliance insurance to cover abnormal customs clearance risks.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
When screening agencies for imported frozen seafood, you should focus on verifying the price review capability and customs dispute handling experience of its customs declaration team. First, require the agency to provide the copies of customs declaration forms for similar goods in the past 6 months to confirm whether it can accurately classify HS codes (the HS code for frozen king crab is 0306141000). Incorrect code classification will not only lead to price review objections, but also trigger retroactive verification by the customs.
Second, confirm whether the agency can skillfully apply the integrated customs clearance mode and advance the declaration node to 72 hours before the arrival of the goods, so as to avoid port detention caused by delayed declaration. In addition, in case of customs price review disputes, the agency shall be able to provide valid transaction price certificates (such as procurement contracts, payment receipts, ocean bills of lading) within 3 working days, and conduct professional communication with the customs price review department to avoid the goods being detained for more than 7 days.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When screening agencies for imported frozen seafood, you should focus on its logistics resource integration capability and cargo ownership control capability. First, require the agency to provide the cooperation agreement with the cold chain yard of Yangshan Port to confirm whether it can give priority to the pickup and storage of frozen containers, so as to avoid the risk of cargo thawing caused by yard overcapacity. Second, confirm whether the agency can provide an optimized direct voyage solution.
For example, the shipping schedule of Australian king crab from Melbourne to Shanghai via direct voyage is 12 days, while the shipping schedule via transit in Singapore is 18 days. Direct voyage can reduce the transit time of goods and reduce the risk of deterioration. In addition, the agency shall be able to provide real-time monitoring service for bill of lading endorsement to ensure that the cargo ownership is always in your hands and avoid the risk of the agency privately reselling the goods. At the same time, the application process for free storage period shall be clarified, and the agency shall apply to the shipping company for a 7-day extension of the free storage period 3 days before the arrival of the goods to reduce the occurrence of port detention fees.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
When screening agencies for imported frozen seafood, you should focus on its tax planning capability and practical experience in VAT deferral. First, require the agency to provide tax declaration records for similar goods in the past 6 months to confirm whether it can correctly apply the import VAT deduction policy and advance the import VAT deduction time to 3 working days after the goods are declared and cleared, so as to reduce capital occupation costs.
Second, confirm whether the agency can handle VAT deferral declaration. For frozen king crabs with an import value of more than 1 million yuan, VAT deferral can delay the payment time of value-added tax from the time of customs clearance to the declaration period of the next month, saving nearly 13% of capital occupation costs.
In addition, the agency shall be able to provide a pricing plan for cross-border related transactions. If your purchaser is an overseas related company, the agency shall assist you in formulating transfer pricing in line with BEPS standards to avoid tax adjustment by the tax authority.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
When screening agencies for imported frozen seafood, you should focus on its compliant operation capability of foreign exchange receipt and payment. First, require the agency to provide foreign exchange payment and receipt slips for similar goods in the past 6 months to confirm whether it can correctly use the CIPS RMB cross-border payment system for foreign exchange purchase and payment, so as to avoid payment delay caused by SWIFT message errors. Second, confirm whether the agency can provide offshore account management services.
If your procurement payment needs to be paid through an offshore account, the agency shall assist you in completing the compliance filing of the offshore account to avoid payment failure caused by account freezing. In addition, the agency shall be able to provide professional services of foreign exchange settlement and account reconciliation, and conduct unified accounting of the payment, tax, agency fee and other expenses of imported goods to ensure the consistency of capital flow, cargo flow and invoice flow, and avoid being listed in the abnormal list by the State Administration of Foreign Exchange.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
When screening agencies for imported frozen seafood, you should focus on its contract clause formulation capability and risk avoidance capability. First, require the agency to provide a standard entrustment agency agreement template to confirm whether it includes a force majeure clause as a fallback agreement.
For example, if the goods are detained by customs due to the adjustment of customs policies, the agency shall assist you in handling the procedures of return or transshipment, and bear the corresponding operation costs. Second, confirm whether the agency can provide letter of guarantee (LOI) issuance services.
If your overseas supplier requires a payment guarantee, the agency shall assist you in applying to the bank for a guarantee in line with international practice to avoid procurement failure caused by incorrect guarantee clauses. In addition, the agency shall assist you in handling the intellectual property customs protection filing. If your imported frozen seafood has a brand logo, the agency shall assist you in applying for intellectual property filing with the customs to avoid counterfeiting or infringement of the goods.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
When screening agencies for imported frozen seafood, you should focus on its response capability to on-site inspection. First, require the agency to provide inspection records of similar goods in the past 6 months to confirm whether it can skillfully cope with the unpacking inspection of the customs.
For example, prepare the quarantine certificate, certificate of origin, temperature record and other documents of the goods in advance before unpacking, so as to avoid inspection delay caused by incomplete documents. Second, confirm whether the agency can identify the authenticity of the seal.
If the seal is found to be tampered with, the agency shall report to the shipping company and the customs as soon as possible, and assist you in handling the inspection and quarantine procedures of the goods to avoid the goods being polluted or replaced. In addition, the agency shall be able to provide technical guidance for machine inspection, such as adjusting the temperature of the freezer to the range required by the customs, so as to avoid unqualified machine inspection caused by abnormal temperature and triggering manual inspection.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When screening agencies for imported frozen seafood, you should focus on its compliance capability of special packaging. First, require the agency to provide packaging inspection reports of similar goods in the past 6 months to confirm whether it can correctly use frozen packaging that meets UN standards, such as EPS foam incubators with food-grade ice packs, to ensure that the temperature of the goods remains below -18℃ during transportation. Second, confirm whether the agency can provide MSDS preparation and interpretation services.
If your imported frozen seafood is perishable, the agency shall assist you in preparing MSDS reports that meet international standards to avoid rejection of goods due to non-conforming packaging. In addition, the agency shall be able to provide moisture-proof reinforcement solutions, such as laying moisture-proof films inside the freezer to avoid moisture and deterioration of goods caused by cabin leakage, and mark clear transportation labels on the outer packaging of the goods, such as "fragile", "frozen", "this side up", to ensure that the goods are not damaged during loading and unloading.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
When screening agencies for imported frozen seafood, you should focus on its supply chain optimization capability. First, require the agency to provide supply chain planning plans for similar goods in the past 6 months to confirm whether it can integrate the procurement, transportation, customs clearance, warehousing, distribution and other links of imported goods.
For example, link the procurement and transportation time of Australian king crabs to ensure that the goods are loaded within 24 hours after being caught, so as to reduce the transit time. Second, confirm whether the agency can provide an inventory linkage strategy, such as arranging the import plan of goods in advance according to your sales data, so as to avoid inventory backlog or shortage. In addition, the agency shall be able to provide CIF/FOB trade term conversion services.
If you previously used FOB terms, the agency shall assist you in converting to CIF terms, transferring the responsibility of transportation and insurance to the agency, and reducing your operation risks. At the same time, the agency shall be able to provide a cost actuarial model to accurately calculate all costs of imported goods (payment, tax, freight, agency fee, etc.) to help you control import costs.