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Do you know if agency exports will be subject to letter inquiries?

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Our company plans to find an agent for export business. I've heard that there may be a situation of letter inquiries during exports, and I'm a bit worried. I would like to ask everyone, will agency exports be subject to letter inquiries? If so, what are the common reasons? I hope experienced friends can share with me so that I can be prepared in advance and avoid unnecessary troubles.

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Professional consultant answers

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

Agency exports may be subject to letter inquiries. Letter inquiries are mainly measures taken by tax authorities to strengthen the management of export tax rebates and prevent the act of fraudulently obtaining export tax rebates. If there are some abnormal situations in the agency export business, it is likely to trigger a letter inquiry. For example, the transaction price of exported goods is significantly higher or lower than that of similar goods; the tax credit rating of the supplier is low or there are records of tax violations; there are doubts about the cooperative relationship between the agency export enterprise and the principal, such as a short cooperation time but a sudden increase in business volume. In addition, if the exported goods involve sensitive goods, such as products with a high tax rebate rate, it may also be subject to a letter inquiry. Once subject to a letter inquiry, the enterprise needs to actively cooperate with the tax authorities and provide true and complete relevant information, such as export contracts, invoices, transportation documents, etc., to successfully complete the letter inquiry process.

Therefore, when choosing agency export, it is necessary to do a good job in the preliminary review and try to select a standardized agent to reduce the risk of letter inquiries.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

Yes, when the tax department has doubts about the agency export business process, for example, if the logistics information does not match the declaration, a letter inquiry may be carried out.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

If the information such as the source of goods and suppliers involved in the agency export changes frequently and unreasonably, the probability of a letter inquiry is very high.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

If the agency export enterprise itself makes mistakes in tax rebate declaration data multiple times, it is also likely to trigger a letter inquiry.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

If the agency export involves abnormal foreign exchange receipt and payment, such as a large gap between the time of foreign exchange receipt and the time of export, it may be subject to a letter inquiry.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

If the tax rebate rate of the agency exported goods is adjusted significantly in a short period, it may be closely monitored and subject to a letter inquiry.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

When the third - party service agencies such as customs brokers involved in the agency export business have bad records, it may also lead to a letter inquiry.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

If the enterprise fails to submit information in a timely and complete manner during agency export, the tax department may conduct a letter inquiry for verification.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

If the operation process of the agency export business is not standardized, for example, the contract is not signed rigorously, it is likely to trigger a letter inquiry.

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