Can the agency fee be included in the relevant expenses of imported equipment after all?
Solved#Other issues#
Our company is going to import a batch of equipment recently, and the agency fee is involved in the operation process. I'd like to ask whether the agency fee should be included in the cost of imported equipment. If it is included, what are the bases and what precautions should be taken? If it is not included, what are the considerations? I hope to get the answers from professionals so that I can have a clear understanding of the treatment of this expense and avoid tax or other problems in the future.
Professional consultant answers
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Whether the agency fee should be included in the cost of imported equipment depends on the situation. If the agency fee is directly related to the purchase of imported equipment, such as the commission paid to the agent for purchasing the equipment and can be clearly distinguished from the equipment price, according to the relevant regulations of the customs, this part of the expense should be included in the dutiable value of the imported goods, that is, included in the cost of imported equipment. Because it is a necessary and direct expense incurred to complete the equipment import transaction.
However, if the agency fee is used for other aspects, such as the after-sales service agency after the equipment is imported, it should not be included in the cost of imported equipment. When it is included, it is necessary to keep relevant contracts, payment vouchers and other materials well to prove the authenticity and relevance of the expense for the convenience of customs inspection. In short, the key to judgment lies in the relevance between the agency fee and the equipment import transaction.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally speaking, if the agency fee is to facilitate the equipment import transaction, such as the cost of exclusive agency procurement, it should usually be included in the cost of imported equipment so that the cost accounting is more accurate.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If the agency fee is paid to the customs declaration agency enterprise for customs declaration and other customs clearance procedures, from the perspective of cost accounting, it can be included in the cost of imported equipment because it is also an expense generated in the import process.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the agency fee is for the agency service of equipment installation and debugging, since it does not belong to the equipment import purchase process, it is not included in the cost of imported equipment.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the agency fee is charged according to a certain proportion of the equipment import amount and the purpose is to assist in finding a suitable equipment supplier, it should be included in the cost of imported equipment, which is a necessary expenditure for obtaining imported equipment.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the agency fee is generated for the maintenance and repair agency after the equipment is imported, it should not be included in the cost of imported equipment, which belongs to the expense in the equipment use stage.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
When the agency fee is directly related to the equipment procurement negotiation and signing and has an impact on determining the equipment price, it can be included in the cost of imported equipment.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If the agency fee is generated by the transportation agency of imported equipment and is to ensure the smooth import of the equipment into the country, it can be considered to be included in the cost of imported equipment.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Like the agency fee for technical training after the equipment is imported, it is not included in the cost of imported equipment, which has little to do with the equipment import itself.