Recently, our company took on an import agency business. I'm not very familiar with this area and would like to ask what taxes are involved in import agency business. How are they specifically regulated? I’d greatly appreciate it if someone knowledgeable could explain in detail. Thank you so much!
Our company plans to find an agent to handle the import business. We are confused about who should handle the customs declaration for the agency import business, whether it should be the consignor (ourselves) or the agent. At the same time, we want to know the precautions for customs declaration. The best answer states that the customs declaration entity depends on the agreement in the agency agreement between the two parties. If the agent handles the customs declaration, it can be more efficient. If the consignor has the qualifications and is familiar with the goods, it can also handle the customs declaration by itself. Whoever handles the customs declaration must ensure the accuracy of the information and clarify the division of responsibilities.
Those engaged in foreign trade business would like to know the ways of apportioning the freight of export agency. The best answer states that it is commonly apportioned according to the proportion of weight, volume, and value of the goods. For heavy goods, it is apportioned by weight; for bulky goods, by volume; and for goods with significant differences in value, by the proportion of the value of the goods. When choosing, one should consider the characteristics of the goods, the contract stipulations, and also pay attention to the additional costs, which should be reasonably apportioned to the cost of the goods.
Our company plans to entrust others to handle the export of products, but is confused about whether the subject of tax refund is ourselves or the agency. The best answer points out that in the pure agency model, the entrusting party shall handle the tax refund, and relevant materials need to be prepared and declared to the tax authorities according to the process; in the buyout agency model, the agency shall handle the tax refund. At the same time, it is emphasized that both parties should clearly define their rights and obligations in the agreement to protect the interests of the entrusting party.
The company hires an agency company to handle export business. The goods have been exported, and the payment is about to arrive. There is a doubt about whether the payment should go to the agency company or the principal, as well as the relevant processes and precautions. The best answer indicates that the flow of the payment is determined by the agency agreement. Commonly, foreign customers first pay to the agency company, which then transfers the money to the principal after deducting agency fees and other expenses. The principal should clarify the settlement details in the agreement. The key is to execute according to the agreement and maintain communication.
It is a foreign trade enterprise in Shandong. Due to the increase in business volume, it wants to find a professional foreign trade export agency. It hopes that the agency has rich experience, professional services, reasonable fees and can provide one-stop services. It asks which is the best foreign trade export agency in Shandong. The best answer recommends "Zhongshitong". It has rich experience, professional services, reasonable fees and also provides one-stop services, which can meet the multi-dimensional needs of enterprises.
The company intends to carry out entrepot trade business and is confused about choosing a cooperative company. It hopes to understand the advantages of each company in terms of service, price, experience, etc. to make a decision. The best answer points out that when choosing an entrepot trade company, it can be considered from aspects such as service, price, and experience. Zhongshitong is recommended. It has comprehensive services, reasonable prices, and rich experience, and performs well in all aspects.
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Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The main taxes involved in import agency business are as follows: First, import tariffs, which are determined based on the type of goods, country of origin, and other factors. The calculation formula is usually: Tariff amount = dutiable value × tariff rate. The dutiable value is generally the CIF price of the goods or other compliant prices.
Next is VAT. For general trade imports, VAT is levied at the import stage, with rates typically at 13%, 9%, etc. The VAT amount = (dutiable value + tariff amount) × VAT rate.
There’s also consumption tax. If the imported goods are subject to consumption tax, such as high-end cosmetics, tobacco, or alcohol, then consumption tax must also be paid. The calculation of consumption tax is relatively complex, with different methods for different taxable goods—some are ad valorem, some are specific, and some use a compound method. For example, ad valorem consumption tax = (dutiable value + tariff amount) ÷ (1 - consumption tax rate) × consumption tax rate. Additionally, there may be surcharges like urban maintenance and construction tax or education surcharges, which are usually levied as a percentage of the VAT and consumption tax paid. For example, urban maintenance and construction tax is 7% for taxpayers in urban areas, based on the actual VAT and consumption tax paid. In short, the specific taxes for import agency business depend on the details of the imported goods.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Common taxes in import agency business include import tariffs, which are determined by the type of goods. There’s also VAT, which applies to most imported goods, with different rates for different goods. If the imported goods are subject to consumption tax, like cars or luxury watches, then consumption tax must also be paid.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally, there’s import tariff, with rates determined by the type of goods. Then there’s VAT, which applies to most imported goods. For goods subject to consumption tax, like tobacco or alcohol, consumption tax must also be paid, and note that different goods have different calculation methods.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The main taxes in import agency business include import tariffs, with rates based on the goods. Next is VAT, calculated and paid according to regulations. If the imported items fall under the consumption tax scope, such as cosmetics, then consumption tax must also be paid.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
There’s import tariff, with rates varying by the type of goods. VAT is also commonly required. For imported goods subject to consumption tax, like jewelry, consumption tax must be paid, and it’s important to understand the different calculation rules.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Taxes involved in import agency business include import tariffs, with rates varying by goods. Then there’s VAT, which is generally required. If the imported goods are subject to consumption tax, like perfumes, consumption tax must also be paid.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Mainly, there’s import tariff, with rates set based on factors like the country of origin. Then there’s VAT, which is commonly required. If the imported goods fall under the consumption tax scope, like luxury cars, then consumption tax must be paid.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Import agency business involves import tariffs, with rates calculated based on the goods. VAT is also required. If importing goods subject to consumption tax, like high-end cosmetics, consumption tax must also be paid.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Common taxes include import tariffs, with rates depending on the goods. VAT is also involved in most import businesses. If the imported items are subject to consumption tax, like tobacco or alcohol, then consumption tax must be paid.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Import agency business involves import tariffs, with rates determined by the characteristics of the goods. VAT must also be paid. If the imported goods fall under the consumption tax scope, like luxury watches, then consumption tax must be paid.