Recently, I learned about the matter of entrusted agency import, but I don’t quite understand why this practice exists. Is it because enterprises have their own limitations that require them to entrust others to handle imports? Or are there other special reasons? I hope someone knowledgeable can explain it.
Our company used to export on its own before and now intends to export products by entrusted agency. We have doubts about the tax refund process for export by entrusted agency and would like to ask if it is the same as the process for tax refund of self-export, what materials are required and how long the tax refund takes. The best answer states that the tax refund process for export by entrusted agency is different. Both parties need to sign an agreement. After handling the relevant procedures, the entrusted party will transfer the materials to the entrusting party. The entrusting party will apply to the tax authorities for tax refund with these materials. The tax refund usually takes about 20 working days, with differences in different regions.
I want to import motorcycles through an agency but don't know how to calculate the import tax rate. I've heard it's related to the type and displacement of the motorcycle. I hope to get a comprehensive and easy - to - understand answer. The best answer states that the calculation of the motorcycle import tax rate involves customs duty, value - added tax, and consumption tax. The customs duty is generally 45%, the value - added tax is 13%, and the consumption tax varies according to the displacement. The amount of each tax can be calculated through specific formulas. Professional agency companies like Zhongshitong calculate more accurately.
The company intends to carry out agency import business and asks what qualifications are needed and whether the missing qualifications can be supplemented and handled later. The best answer points out that generally, an import-export operation right is required for agency import, and specific qualifications may be needed depending on different commodities. For example, an import of food requires a food business license, and an import of cosmetics requires relevant filing certificates or approval documents. Most of the missing qualifications can be supplemented and handled later according to the specified procedures.
When importing goods through an agency company and the contract does not clearly define the subject responsible for paying taxes and fees, a disagreement may arise with the agency company. The question is who should generally pay the taxes and fees for agency import. The best answer indicates that without a contract agreement, from a legal and industry practice perspective, the user or beneficiary of the actual imported goods, that is, the principal, is usually the ultimate bearer of the taxes and fees. The agent may advance the payment first and then settle with the principal.
The company intends to import a batch of equipment through an agency and wants to know what taxes are involved. The best answer states that the agency import of equipment generally involves customs duties and value-added tax (VAT) in the import link. The customs duty rate is determined according to the HS code and calculated based on the dutiable value. The general VAT rate is 13%, calculated based on the sum of the dutiable value and the customs duty amount. Some specific equipment may also involve consumption tax.
It is said that the company imports goods through an agent, incurring fees such as agency fees, customs declaration fees, and transportation fees, and is not clear about what subjects they should be recorded in during accounting. The best answer indicates that agency fees and customs declaration fees are generally recorded in the procurement costs; transportation fees are recorded in the procurement costs before the goods arrive, and are recorded in the selling expenses if they are used in the sales process after being put into storage; other fees directly related to procurement are recorded in the procurement costs, and those related to sales are recorded in the selling expenses.
Full escort of the import route, easy access to the global supply chain
Export agent experts, help you easily expand the international market
Avoid tariff barriers, full process transit plan customization
Export tax refund full agency, compliant and efficient fast arrival
International settlement solutions, ensure the safe arrival of funds
A key foreign trade import and export enterprise, with more than 20 years of import and export agency experience, providing one-stop service throughout the entire process!
Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Enterprises choose entrusted agency import mainly for the following reasons.
First, many enterprises lack professional foreign trade talents and import business experience. The import process is complex, involving customs declaration, inspection, transportation arrangements, foreign exchange settlement, and many other steps. Any oversight may lead to issues, whereas professional import agency companies have experienced teams that can ensure smooth processes.
Second, for some small and medium-sized enterprises, setting up a dedicated import department is too costly. It requires hiring relevant personnel, conducting business training, and equipping office facilities, etc. Entrusting an agency only requires paying a certain agency fee, which can significantly reduce expenses.
Furthermore, the import of some products may be subject to policy restrictions or require special qualifications. Import agency companies often have the necessary qualifications and resources to help enterprises import products smoothly. Therefore, overall, entrusted agency import can solve many challenges for enterprises.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
It might be because enterprises themselves are not very familiar with import-related policies and regulations, fearing non-compliant operations. Entrusting an agency company is much more worry-free, as they are more knowledgeable.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Some enterprises feel that handling the cumbersome import procedures themselves is too time-consuming and energy-draining. Delegating it to an agency company allows them to focus on their core business.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The supply chain management for some imported products is quite complex. Agency companies have advantages in this area and can better coordinate various steps, which is why enterprises choose entrusted agency import.