What is the essential difference between agency export and self-operated export?

From the perspective of international trade law definition,Foreign Trade Agency Agreementis to entrust qualified third parties to complete customs declaration,A complete export agency agreement should be attached with:Handling the entire process including tax refunds, with the company only serving as the actual supplier.Self-operated exportRequires the company to independently complete customs registration, foreign exchange account opening, VAT refund declaration, and other full sets of export qualifications.

What are the significant operational differences between the two models?

• Qualification requirements
  • Agency export: No customsimport and exportPower
  • Self-operated export: Must obtain a customs registration certificate
• Capital flow
  • Agency export: Foreign exchange is collected by the agency company
  • Self-operated export: Direct settlement through the companys own foreign exchange account
• Risk bearing
  • Agency export: The customs declaration form is issued under the agency companys name
  • Self-operated export: The company bears all trade risks independently

Five core advantages of choosing agency export

According to 2024 statistics from the General Administration of Customs, 63% of SMEs choose agency export, with main benefits including:

• Saving 30-50% of the time cost for qualification processing
• Avoiding risks from foreign exchange control policies (e.g., the 2023新版外匯管理條例)
• Sharing the agency companysExport DrawbackQuota
• Professional team handling trade disputes
• Flexible response to seasonal order fluctuations

Which types of companies are more suitable for self-operated export?

Companies with annual export volumes exceeding $5 million are recommended to consider the self-operated model, especially:

• Companies needing to establish their own international brands
• Involving special regulated goods (e.g.,Medical EquipmentHazardous chemicals)
• Having long-term stable overseas customer resources
• Possessing professionalforeign tradeTeams and risk control systems

How to choose under the 2025 international trade environment?

With the full implementation of RCEP and the development of digital trade, companies are advised to focus on:

• Cross-border E-commerceComprehensive pilot zone policies (e.g., the 15 new試點城市 added in 2024)
• Customs clearance conveniences brought by AEO certification
• Innovative applications of exchange rate hedging tools
• Solutions for green trade barriers

Common misconceptions and risk warnings

• Agency fee traps: Be wary of abnormal quotes 3% below market price
• Document risks: Must ensure consistency among the three documents (customs declaration form, bill of lading, VAT invoice)
• Time Sensitivity Risk: Bulk commodity exports require special attention to L/C presentation deadlines

Professional advice: How to evaluate a cooperative agency company?

It is recommended to assess agency companies from the following dimensions:

• Customs credit rating (recommended AA-class companies)
• Foreign exchange administration classification level (Class A is optimal)
• Historical tax refund cycle (normally should be within 45 working days)
• Possession of special industry operation qualifications
• Information system integration capability