How does the foreign trade agency calculate the profit when buying out the export?

In the agent export of several settlement methods, the use of the most is the mode of buyouts export. This pattern, common in the production enterprise to find a foreign trade agent company to buy out exports.



For example, a production enterprise sells the goods to an agency, and then the agency sells the goods to foreign customers. At this time, the agency settles at a higher exchange rate than the current normal exchange rate, and then the export tax rebate also converted into the purchase price, a one-time buy-out, to the manufacturers.

At this time, the production enterprises as long as in accordance with the requirements of the agent, the corresponding amount of goods on the value-added tax invoice, at the same time on time delivery, and ensure the quality of the goods. In fact, the manufacturer's goods by the agent company a one-time buy-out, a bit like the form of domestic sales. Among them, this ticket tax refund, manufacturers do not take, this part of the tax refund income belongs to the agent company income. Of course, this is not to say that the agent company took away the enterprise's tax refund income, when he bought out, he will also convert the tax refund income into the payment for goods, together with the payment to the production enterprise. So in practice, the agent company did not actually get the agent export of this part of the product tax refund income, he just got the agent fee from it.

So how do agent export companies calculate their expenses, revenues and profits when they buy out the settlement method of export?

Expenses of agency export company
Let's start with an analysis, what are the agency's expenses? First, the export agent should pay the factory, the second is a variety of other fees, including bank fees, inspection fees, Hong Kong miscellaneous fees and so on. The purchase price paid to the factory by the export agent is in fact the agreed price of the buyout, the amount of the export. The amount of the export is generally calculated at FOB. If you are CIF sea freight, deduct the shipping and insurance premiums.

The agency bought out the goods by way of payment. After the payment of the purchase price to the manufacturer, the manufacturer issued the corresponding amount of special VAT invoice to the agency company, the export agency company then took this VAT invoice for follow-up tax refund and other work. Then the export agent to pay the manufacturer's purchase price and the value-added tax invoice amount issued by the manufacturer, the amount of the two are actually equal.

Income from agency export company
Next, let's look at the agency's revenue. For the agency, his income is actually equal to the income of the settlement, plus the income from the tax refund. For example, the agent company exports 10,000 U.S. dollars of goods, the foreign exchange income is equal to the export sales of the current exchange rate, at the same time, the export of this goods, the state will also subsidize a portion of the tax refund income. Agent companies are generally trade-oriented foreign trade companies, tax rebate income is calculated in accordance with the trade-type export enterprise tax rebate method.

Profits of agent export companies
Finally, let's see where the agency's profits lie. The main profit of the agency comes from the export agency fee. When calculating profits, it may be the value of a critical exchange rate.

First of all, here, we do not consider the agent export process of various fees, such as bank charges, inspection fees. The formula for calculating the profits of the agency company is: profit = revenue - expenditure. Then, when the income and expenditure are equal, the agency company's income and expenditure balance, the profit is 0; When the income is greater than the expenditure, the agency company profit is positive at the same time, but also can obtain part of the agency fee, at this time it is profitable; On the contrary, if the income is less than the expenditure, it is obvious that the agency company is losing money.