What are the essential differences between self-operated export and agency export?

Self-operated export refers to enterprises directly completing the entire export process in their own name,requiringEnterprises need to have legal import and export qualifications,including: andforeign exchange account,and independently handling customs declaration,tax refund and other procedures.Agency export means entrusting a third-partycompany to operate on behalf of the enterprise,with the enterprise settling accounts with the agent in the form ofdomestic trade,where the agent assumes the customs declaration header and foreign exchange receipts/payments.

Which model is more suitable for SMEs in their initial stage?

From an operational cost perspective,priority consideration should be given to agency export:

• Initialinvestmentcomparison
  • Self-operatedexport:Requiresestablishmentofaninternationalbusinessdepartment(annualcostapproximately500,000+CNY)
  • Agencyexport:Onlyrequirespaymentof3%-8%servicefee
• Risk assumption differences
  • Self-operatedexport:Requiresindependenthandlingofexchangeratefluctuations,Changesinpaymentmethods
  • Agencyexport:Agentsprovideriskbuffermechanisms

What are the key differences in tax refund procedures?

Self-operated export enterprises candirectly apply for tax refund,requiring preparation of:

• SpecialVATInvoice
• documents(withtheenterpriseitselfastheoperatingunit)
• Specialattentionshouldbepaidtocross-regionalagency:

Under agency export mode,the agent serves as thetax refund entity,and the enterprise needs to provide:

• From2025,theagencycompanyneedstotransferthefullsetofdocumentstotheprincipalwithin15workingdaysafterthegoodsleavethecountry.
• proformainvoice(reflectingdetailsofagencyservicefees)
• VATsplitsheet

How should compliance risks be prevented?

Self-operated export enterprises need to pay special attention to:

• CustomsAEOcertification(2025newregulationrequiresmandatorycertificationforenterpriseswithannualexportsover$2million)
• StateAdministrationofForeignExchangeGoodsTradeMonitoringSystemDataReporting
• Export-controlledItemsECCNcodeDeclaration

Although the agent bears primary responsibility for export agency,production enterprises must still ensure:

• ExportcommoditiescomplywithRulesofOrigin
• TradedocumentsThree-streamConsistency(GoodsFlow,CapitalFlow,DocumentFlow)

How to choose the optimal model based on the companys current situation?

It is recommended toFour-dimensional Evaluation ModelDecision:

• AnnualExportVolume
  • $5million:Prioritizeexportagency
  • >$10million:Recommendapplyingforself-operatedqualification

• ProductFeatures:
  • Hightaxrebateproducts(e.g.13%rebateforelectromechanicalequipment)aresuitableforself-operation
  • Customizedproductsarerecommendedforself-operationtocontroldeliveryquality
• Capital Turnover Cycle
  • Agencyexportcanshortenthepaymentcollectioncycleby15-30days
• International Trade Talent Pool
  • Atleastthreeprofessionalswithinternationaltradecertificatesarerequired.