Import and export consignment services

What is import/export consignment? Why is import/export consignment service necessary? What are the responsibilities of the parties in a consignment contract? How can risks be minimized for both parties during the import/export process? Let's find the answers with Van Hai in this article!

Why do you need import and export consignment services?

There are many reasons why businesses cannot directly register their names on the paperwork when carrying out import and export activities and therefore need to use import and export consignment services. The most common reasons are a lack of human resources, experience, understanding of procedures, or legal issues… Details are as follows:

• Individuals who are not legal entities to conduct import and export activities, or sole proprietorships : With the development of global trade, the demand for international trade is increasing. If you are just an individual and not a business organization, without legal personality, you will not be able to conduct buying and selling or sign contracts with international partners. In this case, using import and export consignment services to carry out the import and export of goods is necessary.
• Newly established businesses often lack experience in handling import and export procedures. This can create difficulties when they engage in international trade due to a lack of understanding of procedures and tariffs. Therefore, to ensure the safety of their first shipments, partnering with a reliable import and export service provider is a smart and safe choice.
• New or specialized goods often require expertise in international trade. While some businesses may possess specific knowledge in this area, they often encounter difficulties in customs clearance when exporting or importing new or specialized goods for the first time. Businesses providing import/export consignment services typically have more extensive experience and are better able to resolve issues quickly and efficiently.
• Lack of trust in international suppliers: Entrusting services to an overseas entity can raise concerns about safety and reliability compared to Vietnamese businesses. The reason is simple: a service provider in Vietnam will have a deeper understanding of the law and market, and can support your business anytime, anywhere.

Responsibilities of the parties in a trust agreement

In an import/export consignment contract, the responsibilities of the consignee and the consignor are divided as follows:

The trustee

• Negotiating and signing foreign trade contracts with sellers in overseas countries.
• Complete all necessary procedures for importing the goods.
• Pay the seller.
• Declare and pay taxes such as import duties and VAT, etc., for imported and exported goods.
• Keep a record of import and export documents such as contracts, commercial invoices, and packing slips….
• Return the imported goods to the consignor, along with the VAT invoice for the imported goods and the VAT invoice for the import consignment service fee.

Responsibilities of the trustee:

• Provide complete information about the import/export shipment, including: type of goods, model, specifications, etc., so that the consignee can place the order.
• Coordinate with the trustee to negotiate contracts with foreign partners.
• Payment for goods and taxes is made by the consignee to the seller and the tax authorities.
• Coordinate the receiving of goods, for example, inspecting the goods at the port together with the consignor.
• Payment of service fees for entrusted services.

How to choose a service provider for import and export consignment.

For individuals, households, and businesses needing to import or export goods, finding a reputable service provider at a reasonable price is always a top priority. So how do you know which company to choose?

Here are four key factors to consider when choosing an import/export consignment service provider:

• Service quality : The experience of service companies in handling export or import shipments needs to be considered. Professionalism and a dedicated attitude are crucial qualities that import-export and logistics service companies must possess.
• Legal Information : Before signing a service agreement, businesses need to carefully review the legal information of the service provider. This is a crucial factor that businesses should consider when choosing a service provider. They should examine the company's track record, operating licenses, and the services it provides, ensuring that this information is transparent and clear.
• Customer service : The willingness of service providers to advise and answer specific questions is crucial. This is especially helpful when you are new to the import and export field.
• Shipping costs: In addition to evaluating service quality, businesses also need to consider the total cost of the service for the shipment to ensure it is within acceptable limits and helps optimize profits. If a company offers a service that is "too cheap" compared to the market, businesses should not rush to choose it but should consider various factors before making a decision.

7. Import and export consignment services of Van Hai Group

Currently, Van Hai Group is a company that provides consignment services to individuals, households, and newly established businesses that do not yet have import and export licenses.

With experience successfully handling a wide range of goods such as machinery, components, handicrafts, and household items, Van Hai is committed to providing customers with optimal service, reasonable prices, and a professional work process.

Contact us now for advice on your shipment: 02363537979