What is an import and export mandate? Risks in entrusted import and export

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For shippers who want to import goods to Vietnam, entrusted import and export is a necessary and indispensable operation. So what is import and export trust? What risks can occur in import and export trust? Let LEC Group experts find out in detail about these issues!

What is an import and export mandate?

Entrusted import/export is the hiring (outsourcing) of an import and export service business unit. To organize and perform activities of exporting/importing goods for the seller/buyer.

Authorized import in the form of a third company (a company specializing in entrusted import and export). Representing a company to import certain products (goods) to its company (trustee).

Export trust is a form of a third company (the company specializes in entrusted import and export). Representing a company to carry out the task of exporting its products (goods) to its companies abroad (trading partners).

Those who need to entrust import and export

The most asked question here is: "Why do companies need a third party to support import and export trust?". This is because when these companies fall under the following categories:

• The enterprise has all the functions. However, there is a brand new product, businesses realize that they do not have enough experience in importing (especially for items that are difficult to import into Vietnam or are required to require a variety of papers and procedure,…). At this time, businesses will prefer to use the method of hiring companies specializing in import and export trust services. These companies will have a lot of experience in import and export trust, so things will be solved faster.

• Newly established enterprises, not fully aware of the procedures and forms of working with customs units. As with the procedures for importing goods, this leads to the need for support from third parties.
• As an individual who is not an organization or a company, there is absolutely no function for import and export.
• Enterprises with import and export function. However, the products that the company wants to import and export are not on the list of goods allowed to be imported. Because each business is only allowed to import and export certain products in the license.
• Do not trust foreign shipper and want to hire an FWD company that has a seller agent, to contact and check the actual goods on their behalf. Shipper's packaging process, verifying that the shipper company is not a virtual company, ...

Notes when using export-import consignment service

Entrusted import and export will have certain limitations. Therefore, when using this service you should carefully calculate and note the following points:

• You have to bear the costs of an import/export trust service (also known as a trust commission).
• You will be less proactive and know less because you are limited by having to work through a third party.
• There is a possibility of certain risks of information from suppliers and imported products. In some cases, importers may actually forget the role when the trustee and seller are used to working and dealing with each other.

Risks in entrusted import and export

In import and export trust, the biggest risk is for the trustee. Because of this unit on behalf of the importer in the paper name. Take all legal responsibilities when importing goods. Therefore, in the case, if the goods inside the shipment are imported or exported as prohibited goods. The person named by the law will always be the first unit to entrust import and export services.

To avoid risks, import and export trust service companies should:

• Always be very careful in making documents, vouchers for importing and exporting goods.
• The only consignee under EXW terms means delivery at seller 's factory. Because EXW companies can ask their agents abroad to check the actual goods inside. To ensure that the goods are declared true, they are not prohibited goods and they are well known to make it easier to work with customs in Vietnam.
• Signing an import-export contract between FWD and importer (the consignee). In order to minimize risks, the contract must clearly state the contractual terms of the goods declared in writing and under the contract. The authorized party will be responsible for all goods that are declared untrue.

For parties to be entrusted:

• Check carefully the goods to see if they are banned from import and export. When importing goods, you need to find out and prepare what documents to avoid being required by FWD companies to do unnecessary things.

• Entrusted import and export will expose foreign leading supplier information and prices of goods.

Above are the sharing of experts of LEC Group about entrusted import and export. If you want to find a reputable professional import and export service provider. Please contact us from today to receive the best support!

LEC GROUP

Head Office: Road 4, Phu My 1 Industrial Zone, Phu My Ward, Phu My Town, Ba Ria - Vung Tau, Vietnam.

Add: No. 28 Thao Dien Street, Thao Dien ward, District 2, Ho Chi Minh City, Viet Nam.

Hotline: (+84) 909 800 136 & (+84) 901 388 136.

Email: info@lecvietnam.com & thao.nguyen@lecvietnam.com

Website: https://lecvietnam.com/

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