How should agency export duties be correctly handled? Come and offer your suggestions!
Solved#Export agent#
Our company has engaged an agency to help export goods. Now it involves the handling of export duties and we are not quite sure what to do specifically. We would like to ask everyone, are there any particular points to note in the financial handling of agency export duties? Is it the responsibility of the agency to pay or do we pay ourselves? What is the payment process? Also, in the customs declaration process, how should the procedures related to duties be handled? We hope that friends with experience can share the relevant knowledge. Thank you.
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In the handling of agency export duties, first of all, it is necessary to clarify the paying entity of duties, which is usually determined according to the agency agreement. If the agreement stipulates that the consignor shall bear the duties, the consignor shall pay the amount to the agency, and the agency shall pay on behalf of the consignor; if the agency shall bear the duties, the agency shall pay the duties by itself.
In financial handling, if the consignor bears the duties, when the agency receives the payment from the consignor, it shall debit "Bank Deposits" and credit "Other Payables". When paying the duties, it shall debit "Other Payables" and credit "Bank Deposits". When the consignor pays the amount, it shall debit "Selling Expenses (if included in the cost, debit the relevant cost account)" and credit "Bank Deposits".
In the customs declaration process, the agency needs to accurately fill in the information related to duties on the customs declaration form, provide complete documents, cooperate with the customs inspection and other work to ensure the accurate and compliant payment of duties.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Generally, the agency is more familiar with the process. You can communicate with the agency and ask them to provide a detailed duty payment plan and schedule, and prepare the funds and handle the relevant procedures according to this.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the goods are exported at FOB price, the duties are generally borne by the consignor. But regardless of who bears them, it should be clearly written in the contract to avoid subsequent disputes.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When paying the duties, attention should be paid to the conversion of exchange rates. Calculate the duty amount according to the exchange rate stipulated by the customs to avoid calculation errors.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
After the agency pays the duties, it will provide you with the corresponding tax payment certificates, which are important bases when recording in the accounts and must be properly preserved.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Before customs declaration, it is necessary to ensure the accurate classification of the goods, because different classifications correspond to different duty rates, which will directly affect the duty amount.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If there are problems in the payment of duties, such as the customs questioning the declared price, etc., the agency and the consignor should actively cooperate with the customs to provide relevant supporting materials and explain the situation.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Usually, attention should be paid to the adjustment of national tariff policies. Communicate with the agency in a timely manner to see if there is any impact on your export business and make preparations in advance.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Some goods may enjoy tariff preferential policies. The agency and the consignor should confirm whether the goods meet the conditions, apply for preferences in a timely manner and reduce costs.