Today, the market is expanding along with the cross-border trade and is growing in quantity and quality. Then the question is whether business people themselves as well as economic learners understand the deep nature of export entrustment.Giaiphapdonggoi.net will give you a more objective and new view of Please entrust the export>>
1. What is an export entrustment?
To understand the deep nature of a problem, the first thing we need to understand is what the problem is. Let's learn each concept first.
The first is export - this is understood as an activity to bring goods and services that they produce to foreign markets for the purpose of earning higher profits thanks to the difference in currency values between countries.
And the second concept is Delegation - thinking is the empowerment from one person to another to perform an activity that is beneficial to both parties.
>> So from here, when combining the two terms of export entrustment together, we can understand that the exchange of goods and services produced in foreign markets is not done by the manufacturer anymore, but by a supplier. a division or an intermediary company specialized in performing the task of distributing and trading goods of enterprises to companies, corporations or large foreign markets.
2. Importance of Export Entrustment
Of course, for a business to survive, its goods or services must be sold and made as profitable as possible. The domestic market may not bring too high profits for businesses. Therefore, it is required that they have a development plan as well as the right direction for the long-term existence of their business.
Export entrustment may be an indirect form, but it greatly contributes to the expansion and development of the goods and services produced by the company in a new market and has great potential for exploitation as well as bringing new products and services to customers. more benefits for the business.
So do we ever ask the question of what the business will be without an export entrustment. It is true that there may be, but we can deduce from the two simplest cases:
TH1: A newly established company develops goods to foreign markets through export entrustment. Within two years the company's growth rate changed dramatically. The company's market is expanded in many territories and countries.
TH2: A company established for more than 10 years but not under the export entrustment policy. The company still exists for a long time but still cannot get a place in the list of the most developed enterprises in the country.
From the two cases that we give, you can certainly imagine what the importance of export entrustment is and will have a decision whether or not to use this intermediary form.
3. How does the export entrustment process work?
There is no denying the benefits to businesses, so they should have an intermediary trustee and to complete a fiduciary process they need to go through the following steps:
First, Enterprises need to find themselves a reputable, responsible and intelligent trustee unit (Because that unit can be the deciding factor whether your goods will really develop well in the environment). foreign or not)
Next, between the two entrusting parties, there needs to be a signed contract to create certainty about the long-term business cooperation relationship (The contract is the minimum required condition when two businesses want to cooperate with the company). grow together)
After signing the contract, the enterprise needs to provide documents or any papers related to exported goods and services. The unit that the enterprise entrusts on behalf of will prepare all export documents, records or documents.
The trustee will be responsible for notifying the exporter about the amount of the payment for the goods to the trustee. In addition, the choice of an international carrier can be negotiated between the trustee and the trustee.
Finally, after completing all the procedures, the entrusting party is responsible for providing the relevant documents to the shipping unit and vice versa, the entrusting party is also responsible for paying taxes on behalf of the authorized unit. exploitation and costs as agreed initially in the first step.
4. In addition to the benefits, what risks can the export entrustment face?
It is true that any problem has its two sides and export trusts are no exception. In addition to the great benefits that it brings to the business, the maximum risk that the trustee company faces is facing legal problems.
Why say that, we already know that the trustee company on behalf of the business is on all documents, so when there is a problem with the goods or services, it is inevitable that there is a violation of the law. problems arise and even lead to bankruptcy. Therefore, it is required that these companies need
