Foreign trade agent

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A foreign trade agent is a legal entity that by proxy and on behalf of the customer  buys from the supplier and delivers the goods from foreign countries into Russia to the recipient and also acts for and on behalf of a client in all instances.

The client and the service customer of a foreign trade agent can be a company or an individual person despite the resident or a non-resident of Russia.

Possibilities and services of FEA-agent and Authorised Economic Operator (FEA-operator) are similar but differ from each other by the level of responsibilities and simplification to conduct FEA and carry out deliveries to the client. Authorised Economic Operator (FEA-operator) carries out all operations by himself not the client if the FEA-agent carries out the services for the customer.

 

The agent and the client (principal) conclude a contract in which the client (principal) can transfer to the agent the following:

-       to find Manufacturers or Suppliers of necessary products and find out purchase conditions. To conduct the similar work in searching a Buyer in another country;

-       to develop an international contract and receive necessary coordination and permission on import or export;

-       to provide the "Importer-recipient" or "Exporter-supplier" in Russia and abroad which will assume all functions of participants of FEA in receiving and registering imported or exported products if the client is not the FEA participant;

-       to do payments and get  concrete goods from a concrete Seller;

-       to execute all necessary customs procedures and to deliver products to the Recipient;

-       to pay all duties, taxes and to prepare the relevant documents and the reporting on transaction, both before the client and for the client in his reporting to the state control and supervising and fiscal authorities.

A FEA-agent executing an order of a client:

  1. Provides the client around 10 or more producers with their prices and conditions and the customer chooses from them the more appropriate supplier.
  2. Makes the calculation of delivery costs, including all costs, payments and taxes;
  3. Classifies the goods on FEACN, selects optimum customs post for the client, options and registration conditions.
  4. Receives all necessary certificates, permissions and conclusions, including documents and references confirming the prices of the goods.
  5. Prepares the FEA-contract  taking into account the interests of the customer, its safety and security against  all risks. Insures the cargo and the contract.
  6. Coordinates the terms of delivery and the contract with customs and other regulatory authorities.
  7. Opens a transaction passport to the client in a bank and registers it in customs as a participant of FEA.
  8. Converts Rubles received from the customer in order to pay for the goods or gives credits on goods or other (depends on contract provisions between the agent and the client).
  9. Buys the goods on the basis of the contract between the client and the supplier and on the basis of  the contract with the agent, instructions and powers of attorney.
  10. Receives the products and controls its quality.
  11. Performs the required logistics operations on the delivery and customs operations in Russia and abroad (pays customs duties and taxes, prepares and registers all relevant transport and customs documents).
  12. Brings and transfers products to the client.
  13. Conducts the claims activities with government agencies controlling the FEA.
  14. Formalizes and conducts all document circulation, submits the customer the reports  on all operations of transaction, expenses and movement of financial means.
  15. Prepares all calculations on taxes and tax reports.

 

The client can use all these services of a foreign trade fully or partly. Restrictions on activities are stipulated by the Principal (client) in the contract.

FEA-agent as well as Authorised Economic Operator (FEA-operator) is a participant of FEA. But unlike FEA-operator he cannot take the functions of the importer-recipient or the exporter directly. Respectively,  instead of the client can't become a formal (technical) importer and release the customer from the need to register as a FEA participant . The agent assumes the most functions of the client connected with the conclusion, performance and implementation a transaction of the client and with conducting FEA in Russia.