In agency import business, the subject responsible for paying taxes and fees usually needs to be determined according to the specific contract agreement. If the contract is not clear, from a legal and industry practice perspective, the user or beneficiary of the actual imported goods, namely the principal, is generally the ultimate bearer of the taxes and fees. Because the principal is the actual demander and beneficiary of the goods. However, the agent may advance the payment of taxes and fees based on the agency relationship and then settle with the principal later.
For example, in the agency import business of Zhongshitong, if there is no contract agreement, it will communicate with the principal first. In actual operation, if the principal has difficulties in capital turnover, Zhongshitong will advance the payment of taxes and fees first, and the principal will return it later. At the same time, import taxes and fees involve tariffs, value-added taxes, etc., and the calculation and payment of these taxes and fees are clearly regulated by laws. No matter who pays, it must be carried out in accordance with the regulations.
Professional consultant answers
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In agency import business, the subject responsible for paying taxes and fees usually needs to be determined according to the specific contract agreement. If the contract is not clear, from a legal and industry practice perspective, the user or beneficiary of the actual imported goods, namely the principal, is generally the ultimate bearer of the taxes and fees. Because the principal is the actual demander and beneficiary of the goods. However, the agent may advance the payment of taxes and fees based on the agency relationship and then settle with the principal later.
For example, in the agency import business of Zhongshitong, if there is no contract agreement, it will communicate with the principal first. In actual operation, if the principal has difficulties in capital turnover, Zhongshitong will advance the payment of taxes and fees first, and the principal will return it later. At the same time, import taxes and fees involve tariffs, value-added taxes, etc., and the calculation and payment of these taxes and fees are clearly regulated by laws. No matter who pays, it must be carried out in accordance with the regulations.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally speaking, although there is no contract agreement, the principal makes a profit by doing business with this batch of goods, so it is reasonable for the principal to pay the taxes and fees. However, if the agent makes a profit from the price difference, it should also share some.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If there is no contract provision, it is more common that the party who makes the customs declaration is responsible for paying the taxes and fees, and then negotiate with the other party on how to share them.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
I think both parties can negotiate and make concessions. After all, it's a cooperative import, and a friendly settlement is beneficial for future cooperation.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In the industry, many cases are that the principal pays because the goods belong to the principal. If the agent says in advance that it will help with the advance payment, that's another matter.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
You can refer to similar business cases, see how others handle it, and then discuss with the agency company to do the same.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
From a fair perspective, whoever enjoys the benefits of the goods should pay the taxes and fees. The principal imports goods surely to make a profit, so it is appropriate for the principal to pay.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the agent and the principal can't reach an agreement, consult professional legal personnel and solve it according to the legal advice.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In some cases, the agent will charge an agency fee and also bear the taxes and fees, but this is relatively rare. Generally, it is still the principal who pays.