1. What is the Twings’ Integrated Trade Agency Service?
Our comprehensive foreign trade agency services are mainly composed of the following services.
1) Foreign trade export-oriented auxiliary services
2) Domestic transportation from door to port
3) Export customs clearance
4) Port-to-port transportation
5) Customs clearance and delivery from destination port to door
2. Why use our comprehensive foreign trade agency service?
The following is a one-by-one analysis of the service content, you will understand why we use our services after reading.
1) Foreign trade export-oriented auxiliary services
This is mainly to provide foreign direct importers with China’s foreign trade export agency services, allowing direct purchasers to skip the intermediate links, directly face the factory, and directly face the factory’s ex-factory price. And through our services, we can directly give the export tax rebate this discount to foreign buyers.
Through traditional procurement methods, foreign buyers must purchase products through the Chinese foreign trade company or the foreign trade department of the factory. Under such circumstances, the foreign trade company will definitely take the tax refund part as its own, and the foreign trade department of the factory will also incorporate the tax refund part into his profit space through the conversion of the USD and RMB exchange rates.
However, if our services adopted, we can help foreign buyers to directly negotiate with the factory about the RMB ex-factory price. Then return almost all of the tax refund to the buyer (only deducting our transparent agency charge). In this way, the buyer has his own space in the pricing of the product.
2) Domestic door-to-port transportation
This is our traditional business as an international freight forwarder, and we are giving first-hand prices. If you quote through a foreign trade company or factory, then they must obtain the price through the freight forwarder, plus a reasonable safety factor and then quote to the buyer. The difference is that we directly give the same price directly to the buyer. This eliminates the unnecessary cost superposition of transportation service.
In this part, we mainly help our customers to avoid risks. According to our experience, we will reduce the probability of customs inspection. If customs inspection occurs, we will react faster than other companies, so that our customers’ goods can catch up with the planned ships or planes in time.
4) Port-to-port transportation
This is similar to the above item 2, and we also provide professional international freight forwarding services. Whether price or service, we are clearer and sharper than export companies. We will not blindly choose the low cost of the customer, but based on the actual situation of the destination port, we will choose the shipping or air transportation plan with the overall cost controllable and fast customs clearance. For example, the clearance efficiency of some ports is very low, and the prices offered by some shipping companies are very low. However, after arriving at the port of destination, there will be a large amount of demurrage and detention charges. And we usually according to the actual situation propose ships with long free-of-charge periods of demurrage and detention, thus to prevent customers from worries.
5) Customs clearance and inland delivery from destination port to door
We rely on our agent network and years of service experience to achieve reasonable and effective efficiency and risk control. We help our customers to enhance efficiency, speed up time to market, and win business opportunities.
From the above analysis, it can be seen that the traditional model of importing goods from China will have at least 3 to 4 links, and need to deal with different suppliers (whether a product supplier, a logistics supplier, or an import customs clearance agent, etc.). When these links are combined, the cost will be superimposed, which will increase the final cost of the customer. It will also greatly affect the efficiency and delay the valuable business opportunities of customers. However, if we adopt our one-stop comprehensive export trade service, we will control the whole process, so that customers can enjoy the preferential price and significantly reduce the cost.
CASE STUDY
The Armenian customer of TAT CYCLES LLC used to place orders to the children’s toy car factory of HARLEY RIDE ON TOYS located in the city of Pinghu on CNF terms, then through Twings transported to the POTI port in Georgia. Data are as follows:”
In September 2018, the exchange rate of USD to RMB was around 6.85RMB at 1USD. Twings charged the agent fee at 0.1 RMB to 1 USD.
The order quantity is 200 toy cars of BENZ LICENSE, which fit right into one HQ container. The ex-work price of this model is 860RMB, and the HS CODE is 95030010.00. The tax rebate rate for exporters is 16%. The FOB fee from Pinghu to Shanghai Port can be provided to the customer at 3600RMB and the sea freight is 2000USD arrival at the port of POTI.
The factory quoted CNF POTI price is 125.00USD. Then what about our quotation of one-stop service? Calculation as below.
First, CNF=EX price + INLAND fee + sea freight fee
EX price=110USD per pc
INLAND fee = 2.63USD per pc
Shipping fee = 10USD per pc
The total CNF is 122.63USD per pc, with the difference against the factory price is 2.3USD which means a gap of nearly 2%. What’s more, if the cost of customs clearance and delivery at the port of destination included, the gap will be bigger.
3. How to use our services most efficiently?
Based on so many clear analysis in the front, are you already very excited? So how can you use our services most efficiently?
We recommend the following
1) you need to be professional enough with your product
Because this product is your core business and we are only service providers after all, it is impossible for us to be as proficient as you are with it. So you have to be sure of the control of the product itself.
We can also recommend suppliers of related products upon your request. Please click on our sourcing service page for more information.
2) you need to provide clear and complete information about the products you need.
The more complete and detailed, the more appropriate a service proposal will be tailored for you.
4. Pros and Cons of the service
Pros
01 Full control. The whole process is controlled by our company and the transparency is good.
02 Lower cost. Lower cost through integration services
03 More efficient. Make your goods faster by integrating foreign trade and logistics
Cons
1) Customers have to be proficient in product details, 2) Long period of trust building.
