In the complex world of international trade, "export by proxy" (commonly known as "buying export rights") has emerged as a noteworthy practice. Essentially, this refers to companies without export licenses purchasing verification documents from licensed exporters to conduct foreign trade under another company's name.
The cornerstone of proxy exporting lies in the verification documents. All exports require customs declaration, which in turn depends on these verification slips. Service providers must not only supply these documents but also furnish a complete set of accompanying paperwork including customs declarations, power of attorney, packing lists, commercial invoices, contracts, and inspection authorization letters—all bearing the official stamps of the licensed company.
Once the proxy company obtains this complete documentation package, they simply submit it to customs brokers or freight forwarders. Successful clearance marks the completion of the proxy export process.
However, several critical considerations demand attention in proxy exporting. First is destination clearance: while documentation for export declaration and destination clearance can bear different company names, consistency among shipping documents (bill of lading, packing list, and commercial invoice) is mandatory. This allows unlicensed companies to export under their own name, as domestic and foreign customs systems typically operate independently without direct communication.
Additional certificates like certificates of origin or fumigation may be required, but many agencies can facilitate these while maintaining document consistency.
The foreign exchange aspect often raises questions: "Must payments go through the proxy company's account?" The answer is no. Proxy exporting allows payments to be directed to any corporate foreign exchange account, personal account, or overseas account—a flexibility that greatly benefits unlicensed companies, independent operators, and businesses with special requirements.
Regarding verification procedures, proxy companies need not worry as the licensed company handles these matters. Importantly, proxy exporting doesn't involve tax rebates, allowing factories to trade without issuing VAT invoices. This method also excludes Letter of Credit (L/C) transactions, being limited to Telegraphic Transfer (T/T) payments—licensed companies naturally prefer direct exports when dealing with L/Cs.
In summary, proxy exporting provides a viable pathway for unlicensed companies to participate in global trade. By understanding its operational mechanisms and precautions, businesses can better navigate international market demands.
