Is the 1039 Agent a Shortcut or a Minefield for Foreign Trade?

Mr. Lang has been looking troubled recently—his cross-border e-commerce orders have surged, but he's overwhelmed by processes like customs declaration, tax rebates, and foreign exchange settlement. At this moment, a peer mysteriously handed him a business card: "Try a 1039 agent export company, specializing in all sorts of foreign trade ailments." What kind of business logic is hidden behind this code-like number? Today, we will unveil its mysterious veil.

What is 1039 Agent Export?

The so-called 1039 originates from the customs supervision code "1039 Market Procurement Trade Method." Unlike general trade, this mode allows SMEs or individuals without import and export rights to clear customs quickly through a (filing system), which is particularly suitable for export scenarios of "multiple varieties, small quantities" such as apparel and small commodities.

• Core Advantage: VAT exemption for single shipments below $150,000, simplified documentation requirements
• Applicable Objects: Cross-border e-commerce, market merchants, startup foreign trade companies
• Key Restriction: Limited to pilot markets recognized by the state (e.g., Yiwu, Guangzhou, etc.)

Three Survival Rules for Agent Companies

Mr. Lang handbag factory exported $2 million worth of goods through a 1039 agent last year. She summarized the industry's "unwritten rules":

• Breaking Down Large Orders: Splitting large orders into multiple declarations below $150,000 to evade tax audits
• Grey Operations: Some agents inflate the declared value of goods to profit from "duty-free quotas"
• Risk Transfer: Exporting under the agent company's name, with the actual supplier remaining hidden

Beware of These "Sweet Traps"

A merchant in Yiwu once suffered a tax rebate dispute of 370,000 yuan due to blindly trusting an agent's promises. Professionals remind:

• Agent fees are usually 1%-3% of the value of the goods, but hidden costs may be higher
• Foreign exchange settlement through underground money channels may trigger anti-money laundering investigations
• "Buying orders for export" without genuine cargo movement is a criminal offense

Survival Guide in the Era of Compliance

With the launch of Golden Tax System IV, the 1039 agent industry is undergoing a reshuffle. Zhongmaoda Foreign Trade experts suggest:

• Prioritize choosing agent institutions officially certified by pilot markets
• Retain complete logistics vouchers and fund flow records
• Companies with annual exports exceeding 5 million yuan should apply for import and export rights

When Mr. Lang finally chose to cooperate with a legitimate agent, he found that it was neither a "universal key" nor a "fierce beast." Perhaps as an industry veteran said: "1039 is like a surgical scalpel—it saves lives when used correctly and can be fatal when used incorrectly." Have you encountered similar dilemmas in your foreign trade practice? Feel free to share your stories in the comments section.