What core cross-border trade pain points can import and export agency companies solve for enterprises?

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I am the owner of a small and medium-sized enterprise that has just started cross-border e-commerce business. Recently, I tried to import a batch of beauty products from Europe for the first time, but got stuck in the customs declaration process.

I did not prepare the certificate of origin and ingredient test report required by the customs in advance, so the container has been stacked at the port for a week, incurring daily port detention fees and storage fees, which makes me very anxious. I used to think that import and export agency companies only help with errands, but now I find that I have no idea about these procedures at all.

I want to know what exactly import and export agency companies do? Can they help me solve the current port detention problem and avoid similar compliance and logistics risks in the future? In addition, what is their charging model, and will there be hidden costs that make me exceed the budget later?

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Expert Q&A

Kevin Lin
Kevin LinYears of service:4Customer Rating:5.0

Trade Solutions ManagerStart a Chat

Many small and medium-sized enterprises fall into the misunderstanding that "agencies are only errand tools" when they first get involved in cross-border trade,thinking that they can handle basic procedures by themselves. As a result,they often face chain reactions such as cargo detention at ports and customs seizure due to missing documents and compliance omissions. The lack of certificate of origin and ingredient test report you encountered will not only generate increasing daily port detention and storage fees,but may also lead to your enterprise being listed in the key supervision list by the customs,affecting the customs clearance efficiency of all subsequent goods.

To isolate such risks,you first need to confirm whether the agency has complete full-link service capabilities: formal import and export agency companies will carry out pre-document review at the initial stage of cooperation,list all required document lists (such as certificate of origin,ingredient report,3C certification,etc.) in advance and assist enterprises in handling them. Secondly,they can rely on long-term cooperative relations with customs to quickly handle the supplementary certificate and release application for detained goods,reducing additional expenses.

For your current port detention problem,the following loss reduction measures can be taken: contact the agency immediately to assist in reissuing the certificate of origin (if the supplier is in Europe,you can apply for expedited handling through the local chamber of commerce,which usually takes 1-2 working days). At the same time,submit the application certificate of the ingredient test report,and apply to the customs for extended release to reduce part of the port detention fees. In the long run,when selecting an agency,you need to check whether it has key qualifications such as Customs AEO Advanced Certification and NVOCC Qualification,which are core indicators to ensure service reliability.

Regarding the charging model,formal agency companies will adopt a transparent "basic service fee + reimbursement on actual expenses" model. The basic service fee is priced according to cargo value or container volume,and detailed bills will be provided for the reimbursement part to avoid hidden costs. It is recommended that you sign a clear service agreement before cooperation,specifying the calculation standard and upper limit of each fee,to prevent budget overruns in the later stage.

Reference: Solar Panel Export Guide: Process, Classification, Benefits
Eric Zhou
Eric ZhouYears of service:6Customer Rating:5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

From the perspective of customs declaration, the core value of import and export agency companies is to solve the customs declaration compliance problems of enterprises. When enterprises declare customs by themselves, they often face valuation disputes due to unfamiliarity with customs valuation rules.

For example, if the declared value of imported goods is lower than the price of similar goods in the customs system, the customs will require the enterprise to provide transaction price certificates (such as contracts, invoices, payment vouchers). If they cannot be provided, tax will be levied according to the customs estimated price, increasing the cost of the enterprise.

The customs declaration experts of the agency are familiar with the customs valuation logic, and can assist enterprises in preparing complete price certification materials in advance to avoid valuation disputes. For disputes that have already occurred, they can be resolved by submitting supplementary evidence or applying for administrative reconsideration. In addition, agencies can also make use of the integrated customs clearance policy to realize rapid customs clearance of goods at different ports and reduce transit time.

Michael Zhang
Michael ZhangYears of service:6Customer Rating:5.0

Customs Declaration & Compliance ExpertStart a Chat

In the international logistics link, import and export agency companies can help enterprises optimize routes and control cargo ownership risks. For example, when enterprises choose logistics by themselves, they are prone to cargo delays due to unfamiliarity with the container rolling rules of shipping companies.

In peak seasons, shipping companies often prioritize the space for high-value goods, and the goods of small and medium-sized customers are easy to be rolled off. Agencies have long-term cooperative relations with multiple shipping companies, and can lock the space in advance to reduce the risk of container rolling.

If container rolling occurs, they can quickly coordinate to reallocate to other shipping schedules or transfer plans. In addition, agencies can assist enterprises in managing the endorsement and transfer of bills of lading to ensure that the cargo ownership is not illegally transferred during transportation and protect the interests of enterprises.

Victor Sun
Victor SunYears of service:5Customer Rating:5.0

Trade Risk Control ManagerStart a Chat

Import and export agency companies play a significant role in cross-border tax planning. For example, when enterprises import goods, they may not be able to enjoy the VAT deferral policy if they handle it by themselves. VAT deferral allows enterprises to temporarily not pay import value-added tax when importing, but declare and pay it after sales, which eases the cash flow pressure of enterprises.

The tax consultants of the agency are familiar with the VAT policies of various countries, and can assist enterprises in applying for VAT deferral qualifications, and optimize the pricing of cross-border related transactions to avoid tax risks caused by unreasonable pricing. In addition, for export enterprises, agencies can assist in handling export tax refunds to ensure that enterprises get the tax refund funds in time and improve the capital turnover rate.

Linda Gao
Linda GaoYears of service:7Customer Rating:5.0

Documentation SupervisorStart a Chat

In terms of cross-border payment and collection compliance, import and export agency companies can help enterprises avoid risks. For example, when enterprises handle foreign exchange settlement by themselves, funds often cannot be received in time due to incomplete SWIFT message information. SWIFT messages need to contain accurate trade background information (such as contract number, invoice number, goods description).

If any item is missing, the bank may refuse to settle the foreign exchange. The compliance experts of the agency are familiar with SWIFT message rules, and can assist enterprises in filling in complete message information to ensure the smooth arrival of funds. In addition, agencies can also use the CIPS RMB cross-border payment system to optimize the foreign exchange purchase rate and reduce losses caused by exchange rate fluctuations.

Lucas Liu
Lucas LiuYears of service:8Customer Rating:5.0

Senior Operations ConsultantStart a Chat

From a legal perspective, import and export agency companies can help enterprises avoid international trade contract risks. For example, when enterprises sign contracts with foreign suppliers, they tend to ignore soft clauses of letters of credit.

For example, the letter of credit requires the provision of a "customer inspection certificate" (inspection certificate issued by the buyer), and the buyer may deliberately delay the issuance, resulting in the enterprise being unable to negotiate payment for goods. The legal experts of the agency can review the soft clauses in the contract and put forward modification suggestions to avoid such risks.

If disputes have occurred, they can assist enterprises in resolving them through arbitration or litigation. In addition, agencies can also assist enterprises in handling intellectual property customs protection filing to prevent goods from being infringed during import.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

In the on-site customs inspection link, import and export agency companies can help enterprises deal with various problems. For example, when goods are inspected by the customs, if the enterprise handles it by itself, the goods may be damaged due to unfamiliarity with the container unpacking process. Professional equipment and skills are required when unpacking containers to avoid crushing fragile goods.

The on-site inspection experts of the agency are familiar with the container unpacking process, and can assist the customs in inspection to reduce the risk of cargo damage. In addition, for abnormal conditions found by machine inspection, experts can quickly interpret the inspection notice and provide response plans, such as supplementary explanation of the composition or use of the goods, to ensure the smooth release of the goods.

Daniel Xu
Daniel XuYears of service:10Customer Rating:5.0

Director of Import & Export OperationsStart a Chat

In the cargo packaging link, import and export agency companies can provide professional compliant packaging solutions. For example, when enterprises export dangerous goods, if the packaging does not meet the UN dangerous goods packaging standards, they will be detained by the customs. UN standards require packaging to have leak-proof, damage-proof and other properties, and different types of packaging are required for different dangerous goods.

The special packaging engineers of the agency can design packaging solutions that meet UN standards according to the hazard category of the goods, and assist enterprises in handling dangerous goods classification identification to ensure the smooth export of goods. In addition, for fragile goods, engineers can provide suggestions on the selection of buffer packaging materials to reduce the damage rate during transportation.

Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

In the export tax refund link, import and export agency companies can help enterprises ensure compliance and improve tax refund efficiency. For example, when enterprises handle tax refunds by themselves, tax refunds are often rejected due to incomplete document filing. The documents required for export tax refund filing include customs declaration forms, invoices, bills of lading, contracts, etc. If any item is missing, the tax authority will refuse the tax refund.

The export tax refund audit experts of the agency can assist enterprises in sorting out the filing documents to ensure that they meet the tax requirements. In addition, experts can use the pre-declaration verification system to check the accuracy of tax refund data in advance, reduce the declaration error rate, and speed up the tax refund process.

Andy Guo
Andy GuoYears of service:3Customer Rating:5.0

Supply Chain Management ExpertStart a Chat

From the perspective of supply chain planning, import and export agency companies can help enterprises optimize the overall trade structure. For example, when enterprises adopt the FOB trade term, if they arrange logistics by themselves, the overall cost is prone to rise due to fluctuations in logistics costs. Under the FOB term, the enterprise needs to bear domestic transportation and customs declaration fees.

If the logistics price rises, it will increase the cost of the enterprise. The supply chain planning experts of the agency can assist enterprises in converting trade terms (such as changing to CIF), transferring logistics costs to suppliers, and optimizing inventory linkage strategies to reduce inventory backlog. In addition, experts can design cost actuarial models to help enterprises calculate the costs of different trade schemes and select the optimal scheme.

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