E-commerce import agency: Comprehensive analysis of agency import process and advantages

1. Instructions for foreign exchange payment as an agent for import

The “Guidelines for Current Account Foreign Exchange Business (2020 Edition)” issued by the State Administration of Foreign Exchange clearly stipulates the principle of “whoever exports receives foreign exchange and who imports pays foreign exchange”, except for special circumstances. In agency import business, the agent is usually the party paying the foreign exchange. However, according to the agency agreement, the principal can also transfer foreign exchange to the agent, or the agent can directly purchase foreign exchange.

2. Import agency contract

Agency import contracts usually involve three parties:

• Importer: An enterprise with import and export rights and import registration qualifications for related products, that is, the entrusted party.
• End user: The final domestic cargo owner, that is, the entrusting party.
• Exporter: Overseas exporter.

3. Agent import process

(1) The entrusting party inquires and the entrusted party quotes

When a customer (the principal) wants to import certain goods but does not have the import and export rights, he will look for a qualified importer (the principal) to act as a trade agent. Importers need to provide customers with detailed quotations, including import customs clearance fees, import taxes (tariffs, value-added tax, etc.), import agency fees, and domestic transportation fees. If the supplier uses different trade terms, the quotation content will also be different:

• FOB: You need to contact the freight company to provide a transportation quote.
• EXW: Including all transportation costs from overseas factory to shipping port, international sea, land and air transportation and domestic delivery to the customer’s designated location.

(2) Sign an import agency agreement

After the customer agrees to the import agency fee plan, both parties sign an agency import agreement based on the information provided.

(3) Fulfillment of import agency

1. Follow orders

The import business department contacts overseas suppliers based on the information provided by customers, prepares to draft import foreign trade contracts, and confirms all terms with the client. Negotiate with overseas suppliers and sign import contracts within the scope authorized by the entrusting party.

2. Receipt and payment

The customer transfers the payment and all fees to the entrusted party’s company account. The Finance Department arranges T/T or applies for issuance of L/C according to the import contract and customer’s instructions.

3. International Logistics

The importer sends a ship to pick up the goods according to the shipping notice. If it is EXW, you need to contact the freight company to pick up the goods at the location designated by the shipper and arrange customs clearance at the overseas shipping port. If it is FOB, just contact the freight company to arrange international sea, land and air transportation.

4. Import customs clearance agent

Collect the documents produced by the documentary department and complete tax payment, commodity inspection and other tasks after the goods arrive at the domestic port of destination.

5. Domestic logistics

Contact the freight company according to the customer’s requirements to deliver the goods to the customer’s designated location.

6. Financial Notes

Provide customers with all import invoices and tax bills, and issue invoices for import agency business expenses.

4. Advantages of e-commerce import agents

1. Reduce import risks

E-commerce import agencies have professional teams and rich experience in commodity procurement, quality inspection, logistics and transportation, customs clearance and declaration, etc., which can help reduce import risks.

2. Reduce logistics costs

Reduce logistics costs and improve economic benefits through centralized procurement and integrated transportation capacity.

3. Providing professional services

Having a professional team and excellent service levels, we provide a full range of professional import services.

4. Expand import channels

Through its own channels and resources, we help companies develop new import channels.

5. Optimize supply chain

Integrate the supply chain, improve logistics efficiency, and optimize the company’s supply chain.

5. Development Trend of E-commerce Import Agents

Digital services

Strengthen digital services, improve data collection and analysis capabilities, and optimize service processes and efficiency.

Customized services

Provide customized import agency services according to different enterprise needs.

Refined management

Strengthen refined management of logistics, customs clearance, warehousing and other links to improve service quality.

Resource integration

Strengthen cooperation with overseas suppliers and logistics companies and integrate superior resources.

International operations

Strengthen international operations, expand the market scope of import business, and improve international competitiveness.

The above content is integrated from two articles, aiming to comprehensively analyze the agency import process and its advantages.