Who should actually pay the tariffs when importing through an agent?
Solved#Import agent#
Our company intends to find an agency company to import a batch of goods and is currently discussing the details of cooperation. I'm not very clear about who will pay the tariffs. I'd like to ask everyone, in the case of importing through an agent, is the tariff usually paid by the entrusting party or the agent? Are there any relevant industry practices or legal provisions? I hope that friends who are knowledgeable in this area can enlighten me so that I can have a clear idea and avoid disputes when signing the contract.
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In the agency import business, the subject of tariff payment is usually determined according to the stipulations in the entrustment agency contract. Generally speaking, the common practice is that the tariff is paid by the entrusting party. This is because the entrusting party is the actual demander and ultimate beneficiary of the goods. Tariffs are essentially taxes levied on imported goods and are directly related to the importing behavior of the entrusting party.
From a legal perspective, if the contract does not clearly stipulate, according to the principle of whoever imports shall bear the tariffs, since the agent conducts the import operation in the name of the entrusting party and the actual importer is still the entrusting party, the tariffs should be paid by the entrusting party. However, in some agency import businesses, in order to provide one-stop services, the agent may stipulate in the contract that it will pay the tariffs in advance and then settle the accounts with the entrusting party. Therefore, the key still lies in how the two parties stipulate in the contract. When signing the contract, it is necessary to clearly define the responsibility of tariff payment to avoid subsequent disputes.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally, it is defaulted that the entrusting party pays the tariffs. After all, the goods are to be used by the entrusting party, and the agent is only helping with the import process. However, if the agent's quotation is an all-inclusive price, the tariffs may be included and paid by the agent.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
It depends on how the two parties negotiate. If the entrusting party wants to save trouble, it may let the agent be responsible for all import taxes and fees including tariffs. Of course, the agent will definitely add some costs. If the entrusting party wants to control the costs, it will pay the tariffs itself.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Usually, the entrusting party pays the tariffs. But if the agency contract states that the agent charges an agency fee that includes tariffs, then it is the agent who pays. So it is necessary to negotiate this well before signing the contract.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In most cases, the entrusting party pays the tariffs. However, there are also special cases. For example, if the agent has a special cooperation with the supplier and can obtain tariff preferences, the agent may pay the tariffs itself to obtain more profits.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
It mainly depends on how the contract is signed. If it is a pure agency fee model, it is mostly the entrusting party who pays the tariffs; if the agent quotes a comprehensive service fee that includes the tariffs, then it is the agent who pays.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Normally, the entrusting party pays the tariffs. But if the agent wants to attract customers and launches preferential packages, it may bear the tariffs itself. It all depends on the specific stipulations of the two parties.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Generally, the entrusting party pays the tariffs. But if the entrusting party and the agent have a long-term cooperation relationship, the agent may bear the tariffs when importing certain batches of goods to show sincerity.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Usually, it is subject to the stipulations in the contract. If the entrusting party wants to flexibly control the taxes and fees, it usually pays the tariffs itself; if it wants to save trouble, it will let the agent be responsible for the tariff payment.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In agency imports, there is no absolute standard for the subject of tariff payment. It is common for the entrusting party to pay, but if the agent wants to expand its business and increase its competitiveness, it may also bear the tariffs itself. Everything depends on the contract.