I recently learned about the agency import business and found that it seems there is no taxation in some cases of agency imports. Why is that? It seems quite strange. Are there any special regulations or principles involved? I hope friends who are knowledgeable in this area can give me a detailed explanation. Thank you in advance!
Someone has asked about wanting to find an agency for imports but is not clear about the charging standards, including the billing methods and charging items, etc. The best answer details the common situations: there is a fixed agency fee, which is charged at around 1% - 5% of the value of the goods, and special services may incur additional charges, and the charging items include prepaid taxes and fees, port miscellaneous fees and other actual expenses incurred.
Someone asked that they have just started dealing with the port warehousing agency import business and don't know where to begin. The best answer detailed the steps: First, prepare documents such as commercial invoices, then declare truthfully during customs clearance, next arrange for the transportation to the warehousing location, and also need to pay attention to policy changes, etc. Understanding these can help clarify the thinking about port warehousing agency imports.
Some people who have just got involved in foreign trade are not clear about the specific work content of agency imports. They are asking about steps such as how to contact foreign suppliers and how to handle customs declaration. The best answer details the key aspects of foreign trade agency imports, including business negotiations, handling certificates, arranging transportation, customs declaration and inspection, picking up and delivering goods, and settlement, etc., giving beginners a preliminary understanding of its work process.
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Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Whether there is taxation for agency imports cannot be generalized. Generally speaking, in the agency import business, the agent only charges service fees such as agency handling fees. The actual purchaser of the goods is the consignor. Taxation is usually for the import link taxes corresponding to the actual transaction price of the goods, such as customs duties, value-added taxes, etc., which are borne and declared and paid by the consignor who actually imports. The agency service engaged by the agent doesn't belong to the category of taxable goods transactions. So, just in terms of the agency service, taxes related to the goods are usually not levied. However, if the agent is involved in some other business behaviors that should be taxed besides the agency service, that's a different story. For example, when the agent has concurrent sales of goods and other situations, the sales behavior will be taxed according to relevant regulations.
In short, the key is to look at the essence of the specific business and distinguish whether it is a pure agency service or involves other taxable behaviors.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The main reason why there is no taxation for agency imports is that the agent mainly provides services and is not the actual importer of the goods. So, generally, taxes related to the goods will not be levied on the agency service itself.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Because taxation is for the act of importing goods. When it comes to agency imports, it is the consignor who actually bears the relevant taxes and fees of the imported goods. The agent just helps with the formalities and so on. So, there is no taxation.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In the agency import business, the agent only earns the agency fee and is not an importer in the true sense. So, under normal circumstances, those taxes on imported goods will not be levied on it.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Mainly from the perspective of the object of taxation, the service of the agent in agency imports is not a taxable goods transaction. So, there is no taxation.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The reason why there is no taxation for agency imports is that the core of its business is of a service nature, which is different from taxable situations such as directly importing goods and then selling them. So, it doesn't involve levying goods taxes on the agency service.