VEDAGENT.NET — Foreign economic activity, import and export
Russia, Novosibirsk, pl. Marx, 7 off. 1008. Phone: +7 383 3 284 384

Foreign economic activity outsourcing

VED Agent specializes primarily in the organization of import and export transportation with full service that is required for optimal, good in law cargo transportation from country to another.

Transportation for client can be arranged in different ways:

  • Firstly, only a service of transportation arrangement can be offered.
  • Secondly, specialists can assist in the execution of the necessary documents (e.g., for customs clearance) at the client’s request; while the clients makes all payments and makes other arrangements on its own behalf.
  • The third option of transportation – VED Agent awards a contract of agency with client, and arranges transportation under this contract on its behalf, executing client’s orders. At that, VED Agent awards a contract with foreign supplier of goods, makes necessary currency transfers and payments, submits cargo to customs authorities (contract holder service). Eventually, the client received delivered goods after customs clearance.
 

VED Agent can also offer another option – foreign economic activity outsourcing.

It’s one of the most effective ways of cost saving in foreign economic activity. This service implies that all activities are handed over to specialists of the company-agent. They deal with all foreign trade transactions at their own discretion and in favor of the client, remaining under its control.
Outsourcing — is handing over of some areas of activities, production functions to the administration of the other company that specializes in the respective field. At that, long-term contract is signed, where outside company is obliged to arrange business process professionally – in the stated direction and in favor of the customer. The business process presence makes the difference from other forms of rendering non-recurrent services and services with beginning and end (service, support etc.).
 
Outsourcing originated in 1980s. Economic crisis and decline in production made many large companies get down to cost cutting and outsourcing. Today outsourcing extends to new spheres. There’s a stable trend of foreign economic activity outsourcing.
 
Modern outsourcing is not just intermediary, it’s also a responsibility for execution of operations at all stages of foreign trade transactions.
Outsourcing is most appropriate at rendering full service in cargo delivery – from loading at the supplier’s warehouse to its handing over to the customer after customs clearance, i.e. before the release to free treatment in Russia.
 

What are the benefits of foreign economic activity outsourcing?

  1. The customer can concentrate on main tasks solution, while the professional deal with intricate foreign trade contracts issues, international transportation, relations with customs authorities, customs payments and duties.
  2. The customer doesn’t have to spend energy, money and time to be constantly aware of changes in foreign market, currency market, customs conditions, maintaining relations with all companies that are in a varying degree related to the deal implementation.
  3. The customer of a foreign trade transaction is not formally involved in foreign trade activity, so there’s no need to open currency accounts, or keep record of foreign trade activity, or exercise exchange control.
  4. The customer doesn’t have to search for favorable terms of cargo transportation, its insurance and storage.
  5. Customs clearance will be carried out with the knowledge of the customer but without its participation. Professionals classify goods correctly considering their specifics, confirm the goods value and apply best efforts for customs clearance at the earliest possible date.
  6. It is apparent that the activity of the specialized firm, similar to VED Agent, with wide experience in various foreign trade transactions, awareness of legislation amendments in foreign market and logistics sector, - will always be more effective in comparison with performance of foreign economic activity departments that are formed in the staff of organizations or enterprises and require significant cash expenses.
 
The fundamental difference between customs officials services (formerly – brokers) and VED Agent services must be taken into account.
 
Upon entering a treaty with a customs official the Customer bears join responsibility for goods. At that:
 
  • The Customer is obliged to provide additional documents and information for the purposes of customs clearance promptly at the request of the customs official;
  • In the event of get-up of goods the customs official may require presence of the Customer and its representative as a specialist with special knowledge in science, engineering, art or craft, if it is necessary for customs clearance under the applicable legislation of the Russian Federation, customs authorities or on the basis of liabilities.
  • The Customer is obliged to collect goods from a temporary storage warehouse or pay storage in a free zone warehouse
 

The Customer is liable

  1. for prompt and full payment of customs duties;
  2. for genuineness and reliability of documents submitted for customs purposes;
  3. for violation of the customs legislation. It should be noted that submission of invalid document and data for customs purposes is a direct violation of the customs legislation. Same goes for non-payment or failure to pay customs duties on time and promptly. In such cases the Customer pays the forfeit to the customs official in the double amount of sanctions for violation, and compensates legal costs in full.
 
NB! In the event of recall of the customs official license due to the fault of the Customer, the Customer covers damages in the amount of loss of annual profit but no less than sum of profits realized by the customs official in the exercise of activities in the last calendar year.
 
If VED Agent enters into a treaty or foreign economic outsourcing it bears all responsibility and risks. VED Agent will carry out customs clearance and deliver goods to the Customer.
 

 

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