Entrusted Import-export is when an individual is not a legal entity with no company but needs to export and import goods to foreign countries, then they have to entrust a business, a legal entity to do entrusted export and import procedures. In addition, if a business is mandated to entrust another enterprise which have the function and license to import and export an item that the entrusted enterprise does not have the full function or license.
Entrusted Export Procedure
At present, many individuals or individual business households do not set up businesses or organizations. They sell goods to overseas buyers and to export them, they need to be the legal entity on the export declaration as an exporter. Therefore, they have to hire import-export trading companies to keep their names on the export goods list. Logistics companies can also carry out these import and export procedures because they also can be trading.
Entrusted Import Procedure
1. Signing the entrust contract with the entrusted entity
2. To provide documents related to export and import goods
3. The entrusted entity will prepare the export documents on behalf of the trustee
4. The principal must notify the importer of the responsibility to pay the goods to the trustee, not to the trustee
5. The trustee and the entrusted entity may agree on which party will appoint the international carrier (usually the trustee).
6. After completing the procedures for the export and import of goods, the trustee shall, within the course of the transportation of the goods, be obliged to issue the required documents at the request of the carrier or importer until goods are delivered to the importer.
Entrusted Import Procedures
Not every individual or even any business can import whatever goods they want. As a rule, some items such as food, children’s goods … enterprises need to have import licenses as well as product announcement on the quality of goods to be able to import. Accordingly, enterprises need to look to import-export trading companies to entrust. Enterprises should prioritize the import and export of imported goods, as their import licenses are still in the process of being renewed, without the need for new registration or extension.
Entrusted import process
1. Signing the trust contract with the entrusted entity
2. To provide vouchers related to imported goods lots
3. The trustee will require the trustee to notify the seller (exporter) of the commercial documents in the name of the trustee.
4. The principal must notify the exporter of the obligation to pay the goods to the trustee and not to the trustee in order to legalize the payment terms in the commercial contract.
5. The trustee and the trustee may agree on which party will appoint the international carrier (usually the trustee).
6. After completing the procedures for the export and import of goods, the trustees shall be responsible for issuing the receipts at the request of the carrier or the exporter for the purpose of making the goods. Customs clearance
7. The trustee will also be obliged to pay the household tax to the entrusted entity. Expenses related to import duties, invoices, and trustees will be billed along with the trustee’s trust fee under the original agreement.
Note when making import-export procedures entrusted:
– All goods that carry out procedures for export and / or import of entrusted goods must be lawful and not subject to import or export ban
– The entrusted party is obliged to fulfill the obligation to declare with the customs office of import and export fully and honestly. In cases where the entrusting party requests the entrusted party to declare the goods details wrongly, the entrusted party shall have to bear the responsibility for being the party on the export or import document.
– The entrusted entity also needs to examine the legal, financial and business history of the trustee or individual to avoid any incident that may arise from post-clearance audits. Responsibility to support and explain the same.
– At present, the procedure of establishment of enterprises is very quick and cheap, enterprises want to do import and export procedures should establish themselves properly and self-prepared documents, full license for the owner to avoid being dependent on the entrusted party when delegating authority to this party.