In recent years, the demand for import and export of goods has steadily increased. Consequently, entrusting these activities to a licensed and specialized company has become essential for many businesses.
To gain a deeper understanding of entrusted import and export services, we invite businesses and customers to read the following article from Truong Thanh Logistics.
1. What Is Entrusted Import and Export?
Entrusted import and export comprises two main activities: entrusted export and entrusted import. A business can use one of these services or both simultaneously.
Entrusted import and export is an arrangement where a business, organization, or legal entity hires or partners with a licensed import/export service provider. This service provider, on behalf of or authorized by your business, will carry out the import or export of goods as per the agreement.
Entrusted import (or import entrustment) is when a business partners with or uses a third-party company (a specialized entrusted import/export firm) as its representative to handle the importation of products or goods.
Similarly, entrusted export (or export entrustment) is when a business partners with or uses a third-party company (a specialized entrusted import/export firm) as its representative to handle the export of its products or goods to a foreign partner.
2. Legal Basis of Entrusted Import and Export Services
Domestic individuals and organizations entrusting import procedures to another organization must ensure that the entrusted organization meets the requirements for a customs declarant, as stipulated in Article 5 of Decree 08/2015/ND-CP dated January 21, 2015, which was amended and supplemented by Clause 3, Article 1 of Decree 59/2018/ND-CP dated April 20, 2018, of the Government.
Customs procedures are to be carried out in accordance with Circular 38/2015/TT-BTC dated March 25, 2015, and Circular 39/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance.
3. Why Do Businesses Need Entrusted Import and Export Services?
There are many reasons why businesses may not directly handle import and export activities under their own name. The most common reasons include a lack of personnel, experience, or understanding of legal procedures and requirements.
Here are the specific reasons that explain this demand:
3.1. Individuals Lacking Legal Capacity
With the development of global trade, the demand for international commerce is increasing. However, if you are an individual and not a business with legal capacity, you cannot directly buy from or enter into contracts with foreign partners.
In this situation, you will need the support of a specialized entrusted import/export service provider to handle the import or export of your goods.
3.2. Newly Established Companies
Some newly established companies may face difficulties in international trade due to unfamiliarity with procedures, tariffs, and other regulations. For their first shipments, partnering with an entrusted import/export service provider is a safe option that can serve as a valuable learning experience.
3.3. New or Special Goods
Some businesses have a certain level of knowledge in international trade. However, when they import or export new or special goods for the first time, they may encounter difficulties with customs clearance.
In this case, hiring an entrusted import service provider is the most suitable choice. These companies often have more experience and can resolve issues more quickly.
3.4. Lack of Trust in International Suppliers
Entrusted import and export services are also well-developed in other countries. Therefore, your foreign partners could potentially assist your business with these activities.
However, relying on a foreign firm may not feel as secure as working with a Vietnamese one. The reason is simple: a service provider in Vietnam will have a better understanding of local laws and the market, and can support your business at any time.
4. Benefits of Using Entrusted Import & Export Services
By using entrusted import and export services, businesses can save significant time, effort, and money. The specific benefits provided by these service companies include:
- The customer does not need to handle the import or export under their own name.
- You avoid issues related to customs procedures, taxes, and other regulations.
- The service is all-inclusive, with a single, one-time payment and no hidden costs.
- You can conduct international transactions using only a standard VAT invoice.
- The service is backed by a commitment to credibility, responsibility, and confidentiality.
- Entrustment fees are reasonable and tailored to each type of goods.
5. Entrusted Import & Export Process
The process for entrusting the import or export of a specific item is as follows:
Step 1: Find a Partner If you want to import, identify the goods and a reputable supplier. You can research the market, read reviews, or seek advice from a specialized entrusted import/export company. If you want to export, you need to find a partner or customer who wants to use your products.
Step 2: Thoroughly Inspect the Goods This step ensures that your goods are not prohibited or illegal items.
Step 3: Proceed with the Commercial Contract
Step 4: Choose a Reputable Entrusted Import/Export Company
Step 5: Sign the Contract and Carry Out Necessary Import/Export Procedures
Step 6: Address Any Issues Related to the Goods (if any)
Step 7: Transport the Goods to Your Warehouse
6. Basic Principles of Entrusted Import & Export
To ensure that entrusted import and export activities are legal and run smoothly, both the entrusting and entrusted companies must adhere to the following principles:
- Always inspect the products carefully and thoroughly check whether the goods are prohibited from import or export.
- Be aware of the necessary documents and procedures for obtaining import/export licenses.
- Once the complete set of shipping documents is available, the entrusted party is responsible for carrying out current import customs procedures.
- Verify the capacity and familiarity of the entrusted company with entrusted import procedures.
- Sign a consignment agreement for the imported goods.
7. Legal Considerations for Entrusted Imports
7.1. On the Entrusted Import/Export Contract
The entrusted import contract is a service agreement. Therefore, the contract will contain key terms related to the service scope, costs, rights and obligations of the parties, and payment.
The entrusted import/export contract must align with the underlying import/export contract to prevent potential disputes or complications.
The determination of the commission fee in this contract also needs to be clearly defined. Typically, the commission amount is determined by the value of the consignment and the specific goods.
Furthermore, the obligations of each party should be clearly stated in the contract.
7.2. Responsibilities of the Entrusted Business
- Negotiate and sign the international trade contract with the foreign seller.
- Carry out all necessary procedures for importing or exporting the products.
- Handle payments to international suppliers.
- The service provider is referred to as the consignee. For manufactured goods, they must ensure the preparation of paperwork, declaration, and payment of various taxes such as import duties, special consumption tax, and VAT on imported goods (based on the tax notice from the customs authority).
- Maintain all import/export paperwork, including:
- Consignment transactions
- Commercial Contract negotiated with the foreign party
- Commercial Invoice issued by the seller
- Packing List issued by the seller
- Customs declarations, tax receipts (if any), and Bill of Lading issued by the carrier (ship, airplane, etc.).
When returning the imported goods to the owner (the consignor), the consignee must issue a VAT invoice for the consignment. The invoice must clearly state the total payment to the consignor, which includes the purchase price (on the commercial invoice), amounts, import duties, special consumption tax, and VAT on imported goods (according to the customs tax notice). This entrusted import invoice is used to calculate the consignee’s production tax and the consignor’s input tax.
7.3. Responsibilities of the Entrusting Business
- Provide the consignee with full details on the product type, standards, dimensions, etc.
- Negotiate an agreement with the international partner in collaboration with the entrusted business.
- Transfer payment for the goods to the entrusted business, which will then pay the supplier.
- Arrange for the transportation of goods.
- Pay the insurance fee for the entrusted operation.
8. Risks in the Entrusted Import & Export Process
The majority of risks in the entrusted import and export process fall on the service provider. These are the entities that act on behalf of the importer, bearing all legal responsibility when importing or exporting goods.
Therefore, if any legal risks arise during the import/export process, the entrusted service provider will be fully responsible.
Truong Thanh Logistics – Providing Reputable and Professional Entrusted Import & Export Services
Truong Thanh Logistics is one of the few licensed companies providing entrusted import and export services in Vietnam. With 12 years of experience in the field, we offer our customers and businesses the most reputable, professional, and dedicated services.
Truong Thanh Logistics has a strong advantage in entrusting the import and export of products such as:
- Cosmetics: Beauty products like cosmetics, perfumes, etc.
- Items Requiring Licenses: Products like alcohol, medical equipment, cars, etc.
- Dry Foods: Candies, milk, dried fruits, etc.
- Functional Foods: Dietary supplements, health foods, pharmaceuticals, etc.
- Fashion: Clothing, handbags, accessories, shoes, hats, and other consumer goods.
- Electronic Components: Electronic products like phones, laptops, speakers, radios, vacuum cleaners, robots, and more.
In addition, Truong Thanh Logistics also supports customers with many other items that require entrusted import and export. For specific needs, please contact us for detailed guidance.
Currently, Truong Thanh Logistics provides entrusted import and export services through a variety of channels, including sea, road, air, and rail. We handle entrusted import and export activities with all countries around the world, ensuring legal compliance and adherence to United Nations policies.
For more detailed information about entrusted import and export services at Truong Thanh Logistics, please contact us at the following address:
Trường Thành Logistics – Professional & Dedicated
Hotline: +84 915 36 38 39
Head Office: 5th Floor, Tower A, Song Da Building, Pham Hung Street, Tu Liem Ward, Hanoi, Vietnam.
Email: sale@truongthanhjsc.com
info@truongthanhlogistics.com
Website: https://truongthanhlogistics.com
HAI PHONG BRANCH
Address: Room C103, TTC Building, 630 Le Thanh Tong Street, Hai An Ward, Hai Phong City, Vietnam.
DA NANG BRANCH
Address: 126 Chau Thi Vinh Te Street, Ngu Hanh Son Ward, Da Nang City, Vietnam.
HO CHI MINH CITY BRANCH
Address: Room 41, 4th Floor, Casanova Building, 85 Nguyen Son Street, Phu Thanh Ward, Ho Chi Minh City, Vietnam.
