When a business does not yet have a dedicated team or has limited experience in handling export procedures, hiring an export entrustment company can help reduce the burden of documentation, customs procedures, and transportation. However, before choosing an entrustment service provider, businesses should understand how the service works, its costs, and the key criteria to check in order to minimize potential risks.
What Is an Export Entrustment Company?
An export entrustment company is a service provider (the entrusted party) that carries out part or all of the export process on behalf of a business or individual (the entrusting party), including transactions with foreign customers, customs declarations, obtaining C/O and specialized permits (if required), international transportation, and payment document processing.
For a deeper understanding of the process and how to issue invoices, you can also refer to: Entrusted export: Procedures, Required Documents and Invoicing in 2026.
Benefits of Hiring an Export Entrustment Company
When a business does not have a dedicated import-export department, hiring an export entrustment company can reduce the burden of procedures and staffing.
- Minimize legal risks: Entrusted service providers have experience in customs declarations, documentation, taxes, and import-export regulations, helping reduce errors and ensure compliance with applicable requirements.
- Shorten processing time: Support throughout transportation, document preparation, and customs clearance helps businesses complete shipments more quickly, especially when they have limited experience.
- Provide legal entity status: Individuals or businesses that are not yet eligible to conduct foreign trade transactions directly can work through an entrusted service provider to carry out import-export activities.
- Leverage partner networks: Entrusted service providers often have established networks of transportation partners, shipping lines, airlines, and logistics agents, providing more options for transportation solutions and costs.
- Save resources: Businesses do not need to invest in additional personnel or establish a dedicated import-export department, making this option suitable for businesses that are new to international trade, have a limited number of shipments, or are testing a new market.
Which Businesses Should Hire an Export Entrustment Company?
Export Entrustment Services are suitable for businesses that do not yet have sufficient resources or experience to independently carry out export activities.
- No experience or dedicated import-export department: Businesses that are new to international markets and do not yet have specialized personnel handling documentation, customs procedures, and export processes.
- Individuals and household businesses that are not eligible to conduct international transactions directly: Those who want to bring goods to foreign markets but do not yet meet the necessary conditions to conduct export transactions independently.
- Exporting specialized goods: Goods that require permits, specialized inspections, certifications, or are subject to specific regulations in the importing market.
- First-time exports to a new market: Businesses that are unfamiliar with documentation requirements, product standards, and customs clearance procedures and need support from an experienced service provider.
7 Criteria for Choosing the Right Export Entrustment Company
Not every export entrustment provider has experience handling all types of goods and markets. Before signing a contract, businesses should review the following criteria to choose a provider that fits their needs and minimize risks during the export process.
1. Check Legal Status
Check the company’s name, tax identification number, trader status, and scope of operations to ensure that the provider is legally qualified to offer export entrustment services.
2. Understanding of Products and Export Markets
Prioritize providers that have handled similar products and markets, as each country has its own requirements regarding labeling, quarantine, certifications, and import conditions.
Example: A business exporting agricultural products to the EU should choose a provider that has experience handling agricultural goods and understands the market’s requirements for quarantine, C/O, traceability, and labeling.
3. Transparent Pricing and Contracts
The quotation should clearly separate entrustment service fees, transportation charges, port fees, C/O fees, taxes, and other additional costs so that the business can easily control the total expenses.
4. Experience in Handling C/O and Specialized Permits
If the goods require a C/O, quarantine certificates, CITES, or other specialized permits, businesses should verify the provider’s capabilities and experience in handling each type of documentation in advance.
5. International Agent and Partner Network
Businesses should choose a provider with a network of agents and partners in export markets to ensure smooth coordination from Vietnam to the importing country.
Example: If a business regularly exports to the United States, it may prioritize a provider with agents in the US to facilitate coordination when a shipment requires additional documents or encounters issues during delivery.
6. Clearly Defined Responsibilities in Case of Incidents
The contract should clearly define each party’s responsibilities in cases of delayed delivery, issues at the destination port, damage during transportation, or situations involving compensation and cargo insurance.
7. Consulting and Support Capabilities
Businesses should choose a provider that can provide clear consultation and support throughout the export process, from checking HS codes and product policies to preparing documents and meeting the requirements of the importing market.
Risks of Choosing the Wrong Export Entrustment Company
- Delayed customs clearance: Missing or incorrect documentation, or goods subject to licensing requirements for which the necessary permits have not been properly prepared.
- Unexpected additional costs: Non-transparent quotations may result in additional service, transportation, documentation, or shipment-related charges.
- Disclosure of partner and selling price information: Since the entrusted party conducts transactions under its name, foreign customer information and selling prices may be disclosed if the contract does not include confidentiality provisions.
- Disputes over responsibilities: The parties may disagree over responsibility for taxes, additional costs, or the handling of goods when incidents occur.
Why Should Businesses Choose Trường Thành Logistics as Their Export Entrustment Company?
Trường Thành Logistics has been operating in the logistics industry since 2012, with a team of more than 100 employees who have extensive experience in import-export, customs, and international transportation.
- Experienced team: Support with checking product policies, preparing documentation, and handling export procedures for goods from A to Z.
- Experience handling specialized goods: Experience with products requiring permits or specialized regulatory management, such as handicrafts, consumer goods, wood products, and many other product categories.
- International agent network: As a member of WCA – World Cargo Alliance, Trường Thành Logistics has access to a network of more than 200 agents, facilitating transportation and delivery coordination overseas.
- Comprehensive export entrustment services: Support from document consultation, foreign trade transactions, permit applications, and customs clearance to transportation and completion of shipment documentation.
Frequently Asked Questions When Choosing an Export Entrustment Company
Question 1: How Are Export Entrustment Service Fees Calculated?
Export entrustment service fees are typically calculated at a rate of 1%–3% of the shipment value. Some providers may apply a fixed fee per shipment, depending on the agreement and scope of services.
Question 2: Who Is Responsible When Goods Are Exposed to Risks?
Responsibility when goods are exposed to risks mainly depends on the entrustment contract. Objective risks are generally borne by the entrusting party (as it remains the owner of the goods), while risks caused by the entrusted party’s fault are the responsibility of the entrusted party, which must provide compensation.
Question 3: What Information Should Businesses Provide When Requesting a Quotation?
To receive an accurate quotation, businesses should prepare the product name and description, expected HS code, quantity, weight, shipment value, pickup location, port of departure, destination port, foreign company information, applicable Incoterms, expected export date, and any existing permits or documents.
Question 4: What Types of Goods Does Trường Thành Logistics Handle for Export Entrustment?
Trường Thành provides export entrustment services for various product categories, depending on specialized regulatory requirements. Typical products include wood products (wooden pallets, pet toys), textiles and garments, agarwood, precision mechanical products, and many other goods.
In summary, before choosing an export entrustment company, businesses should clearly identify their needs, assess the provider’s capabilities, scope of support, costs, and each party’s responsibilities.
Do you have a shipment that needs to be exported? Send your shipment details to Trường Thành Logistics – our team of specialists will review them and advise on a suitable solution.
Trường Thành Logistics – Professional and Dedicated
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