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Why do SMEs need professional agencies for their import and export business?
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TRACKING NO. 20260420 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates
I am the owner of a small and medium-sized clothing export enterprise. I have just been engaged in cross-border trade for less than half a year. Recently, a batch of goods bound for Europe was detained by customs due to incomplete customs declaration documents. Not only did I incur more than 20,000 yuan in demurrage fees, but I also missed the customer's delivery deadline and lost a long-term order. I thought that handling import and export by myself could save agency fees, but I encountered a lot of problems: I didn't know how to apply for VAT deferral when it came to taxes, and paid more than 100,000 yuan in VAT in advance, which tied up my working capital; I didn't lock in the exchange rate when settling foreign exchange, and lost more than 30,000 yuan due to exchange rate fluctuations; the freight forwarder I chose was unreliable, and the goods were left behind due to failed loading space confirmation, causing delays. Now I feel overwhelmed. I want to know why so many enterprises choose agency import and export, and can professional agencies help me solve these practical problems?
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
When small and medium-sized enterprises carry out import and export business on their own，the cost drawbacks of the traditional model are often overlooked. Take tax costs as an example，when handling matters by themselves，enterprises are prone to paying large amounts of VAT in advance due to unfamiliarity with the VAT deferral policy，which ties up the enterprise's working capital，the lack of professional operation in the foreign exchange settlement link makes it impossible to lock in the optimal exchange rate in time when the exchange rate fluctuates，causing additional losses. In addition，improper selection of logistics paths will generate hidden costs such as demurrage fees and container detention fees，and mistakes in the compliance link may lead to fines，further increasing the operating burden.
Professional agency import and export companies can help enterprises reduce costs by optimizing paths. For example，in terms of taxation，agencies can assist in applying for VAT deferral，which delays the payment of VAT until after the goods are sold，alleviating the pressure on working capital，when settling foreign exchange，professional tools can be used to lock in the exchange rate and reduce exchange loss. In terms of logistics，agencies can select the optimal path according to the characteristics of the goods and the destination，avoid problems such as skipped loading and space shortage，and reduce hidden costs.
The entry threshold for enterprises to choose an agency is low，only requiring the provision of basic business documents，without the need to build a professional team or invest a lot of funds by themselves. The benefit-cost ratio calculation shows that the agency service fee usually only accounts for 1%-3% of the trade volume，but the savings brought by cost optimization often exceed this proportion. For example，for an enterprise with an annual export volume of 10 million yuan，it can save about 1.3 million yuan in working capital occupation through VAT deferral，reduce exchange loss by about 50,000 yuan through foreign exchange settlement optimization，and reduce hidden costs by 30,000 yuan through logistics optimization. The overall benefit is far higher than the agency fee.
It should be noted that when choosing an agency，its qualifications and experience need to be inspected to ensure that it can provide compliant and efficient services. Zhongshen has 20 years of experience and can tailor optimization plans for enterprises to achieve the best balance between cost and benefit.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Customs price assessment is a key link in import and export business. When handling matters by themselves, enterprises are prone to price assessment disputes due to unreasonable declared prices. For example, if an enterprise fails to provide complete proof materials of transaction price, the customs may assess the price according to the minimum price of similar goods, causing the enterprise to pay more tariffs. Professional agencies can review the declaration documents in advance to ensure the authenticity and rationality of the transaction price and avoid price assessment disputes. If disputes arise, the agency can quickly prepare supplementary materials and communicate and coordinate with the customs to reduce customs clearance time and additional costs. In addition, agencies are familiar with the unified customs clearance policy and can use the cross-regional declaration advantages to improve customs clearance efficiency.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
Control of cargo rights is crucial in international logistics. When operating on their own, enterprises may lose cargo rights due to non-standard bill of lading endorsement. For example, if an enterprise fails to endorse the bill of lading correctly, it may not be able to pick up the goods smoothly after the goods arrive at the destination, resulting in demurrage losses. Agencies can assist in handling the endorsement and transfer of bills of lading to ensure the safety of cargo rights. In addition, agencies are familiar with the advantages and disadvantages of direct shipping and transit schemes, and select appropriate schemes according to the urgency of the goods to avoid problems such as skipped loading and space shortage. For container detention fees, agencies can negotiate with shipping companies to extend the free storage period and reduce hidden costs.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
In cross-border tax planning, the BEPS (Base Erosion and Profit Shifting) rules are the focus that enterprises need to pay attention to. When operating on their own, enterprises may be identified by tax authorities as transferring profits due to unreasonable related party transaction pricing, triggering tax risks. Agencies can assist in designing a reasonable related party transaction pricing mechanism that complies with BEPS rules. In addition, agencies are familiar with the withholding tax policy for non-resident enterprises and can reduce the withholding tax burden by optimizing the transaction structure. The application of VAT deferral policy is also an advantage of agencies, which can effectively alleviate the capital pressure of enterprises.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
In compliance operations of cross-border receipt and payment, SWIFT message analysis is a key link. When handling matters by themselves, incorrect message information may cause funds to fail to arrive in time, affecting business progress. Agencies can assist in analyzing SWIFT messages to ensure accurate information. In addition, agencies are familiar with the CIPS RMB cross-border payment process and can help enterprises select the optimal payment method to reduce exchange rate risks. In terms of offshore account management, agencies can provide compliance suggestions to avoid account freezing.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
Letter of credit (L/C) soft clauses are common risks in international trade. When operating on their own, enterprises may fail to receive payment smoothly due to failure to identify soft clauses. For example, if an L/C stipulates that "the goods inspection certificate must be issued by the institution designated by the buyer", the buyer may deliberately delay issuing the certificate, affecting the receipt of payment. Agencies can assist in reviewing L/C clauses, identify and modify soft clauses to protect the rights and interests of enterprises. In addition, agencies can assist in drafting force majeure clauses to cover the enterprise's responsibilities in case of emergencies and reduce legal risks.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
During on-site customs inspection, the identification of seal authenticity is an important link. When operating on their own, if the seal is tampered with, it may be identified as smuggling, causing serious consequences. Agencies can assist in identifying the authenticity of seals to ensure the safety of goods during transportation. In addition, agencies are familiar with the response process for container unpacking inspection, and can prepare relevant materials in advance to reduce inspection time. In terms of machine inspection skills, agencies can guide enterprises to arrange goods reasonably, improve the passing rate of machine inspection, and avoid secondary inspection.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
In the compliance of export tax rebates, the verification of the four flows (goods flow, capital flow, invoice flow and contract flow) is the core requirement. When operating on their own, if the four flows are inconsistent, it may lead to failure of tax rebate application. Agencies can assist enterprises in sorting out the four flow information to ensure consistency. In addition, agencies are familiar with the tax investigation process and can quickly prepare investigation materials to shorten the investigation time. In the pre-declaration verification link, agencies can use professional tools to verify declaration data in advance, avoid declaration errors, and improve tax rebate efficiency.