Import business models refer to the classification of the import industry from multiple perspectives including foreign exchange income, profit/loss distribution, relationships, and importing countries. We also need to understand the business models of import companies. Company accountants should pay particular attention. Otherwise, minor errors may occur during import and export processes.?Import/export?Business Models

?Import Agency?Self-operation

Enterprises can directly purchase goods from abroad and make payments, or entrust customs brokers to handle customs declarations. Importing enterprises must pay in foreign currency themselves and receive special VAT invoices from customs for collection, verification, and deduction, without needing to pay foreign suppliers.

Indirect Agency Declaration

After the importing company directly signs sales contracts with suppliers and prepares import documents in the importing companys name, the importing company signs a customs declaration entrustment agreement with a customs broker or other importing company, where the customs broker acts on behalf of the customs company. Alternatively, you can declare to customs on behalf of other importers.

Import Agency

Entrust an agent, make direct payments to the import agent, and the agent arranges shipment from overseas suppliers. Import duties, VAT, and consumption tax are doubled, and the original recipient must declare VAT deductions.

False Self-operation, True Agency

In fact, the import industry does not have such a designation. Based on agency imports, after the agency imports, the import VAT is directly deducted by customs from the agent, and the agency company issues goods invoices to the buyer. A reliable business is when the agent independently imports and sells products on behalf of clients, and from the clients perspective, the purchase is made from the agent.

What are the business models of import companies? How to act as an agent for imported products?