In such activities, the agents role mainly allows the principal to avoid direct pressure from customs and other authorities, while also eliminating the need forforeign tradepersonnel management, saving the companys labor costs. By delegating these tasks to specialized companies, the principal can focus more time on other procurement activities.

Secondly, having professionals handle the operations can make foreign trade activities more professional and standardized, avoiding potential adverse issues for the company and its products during foreign trade.

According to national regulations, businesses engaged in export activities can enjoy tax rebate benefits. The rebate amount can be advanced by the agent and later reimbursed by the principal once financial pressure eases.

The agency fee is generally negotiated between both parties, typically ranging fromimport and export1% to 3% of the goods value. During settlement, it depends on whether the principal has import-export qualifications. If so, the agent can directly issue an invoice to the principal for the agency fee. If the principal lacks such qualifications, the settlement method for the agency fee is similar to common purchase-sale transactions.

This article link:What does it mean to entrust a specialized export agency company? | Export Representation | Foreign Trade Agency Agreement | Entrusting export agency