foreign tradeimport and exportGenerally divided into two categories. The first involves independent import/export companies with import-export rights that can legally conduct import/export activities. The second involves companies without import-export rights that delegate import/export transactions to agency firms. What’s the difference between self-operated and agency-based import/export?

Self-operated import/export business

Import/export operations for self-produced and sold goods mainly focus on overseas markets. There are price differences between selling imported products domestically and selling domestically produced or sourced goods overseas. The most notable feature of independent enterprises is their control over supply sources and clientele, bearing the risks and costs of import/export. There are two main types of self-operated import/export businesses.

01 Manufacturers with import-export rights

Self-operated import/export rights: Manufacturers approved by relevant national authorities can use self-operated export products, independently import materials for self-operated exports, and possess machinery and raw materials required for self-operated exports. However, products restricted or prohibited by national regulations are excluded. Their import/export scope is highly limited—only products within their business scope can be imported—but they have strong pricing control and competitive advantages.

02 Trading companies with import-export rights.

These companies can import foreign products for domestic sales or purchase domestic products at lower prices to sell overseas at higher prices. Their activities generally fall into three categories: goods, technology, and services. Individual businesses or small enterprises are typically unsuitable for technology transactions, and certain goods like grain require designated companies for import/export, excluding individuals. Capital-intensive, comprehensive services, furniture, and appliances are also unsuitable for individual operations. Such companies can handle a wide range of products and outperform independent manufacturers in sourcing and sales through diverse channels.

Foreign trade import/exportExport Representationcompany

Import/export traders are clients needing to move goods. Those unfamiliar with import/export or lacking rights can delegate tasks to professional agencies like shipping companies, freight forwarders, customs brokers, or trading firms. Common services include inspection agency, warehousing, customs clearance, export tax incentives, etc.In order to crack down on tax evasion, the customs and tax departments are now strictly examining the operation of buying export declarations. If the behavior of buying export declarations is discovered, the regulatory authorities will require tax replenishment (even a 2% tax rate may be a considerable amount). In addition, fines may also be imposed on the relevant responsible parties.Import/export operations are typically handled by agencies. As third-party intermediaries separate from shippers and consignees, they charge service fees but generally don’t bear credit, product quality, exchange rate, or market risks. The key difference lies in ownership—agencies don’t own imported goods. Stronger agencies may offer inventory financing, import payment services, etc., often under capital-intensive supply chain models.

Note: The most critical aspect when working with agencies is product ownership. After negotiation, importers must sign agency contracts clarifying ownership to avoid disputes. Importers should also safeguard their rights to prevent conflicts or lawsuits due to inadequate privileges post-shipment.

Understand foreign trade laws and regulations. Whether self-operating or using agencies, maintain smooth communication with relevant departments while coordinating stakeholder relationships. Stay informed about international trade trends and temporary policy changes.Import RepresentationWhat are the business models of import companies? How to delegate import product handling?

What are the main differences between import/export agencies and self-operated import/export?