Doubtful about the trade format, asking if trade between Macao and the mainland counts as re-export trade. The best answer states that the mainland and Macao both belong to China, and under normal circumstances, trade between them is not re-export trade. Re-export trade requires goods to be transshipped in a third country or region, and this location is neither the place of production nor final consumption. Most trade between Macao and the mainland is regional cooperation and does not meet the definition of re-export trade.
How is Tax Levied on Goods Imported by an Agent? Please Help Me Answer!
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Our company plans to find an agency to import a batch of goods. We haven't dealt with agency imports before and are not very familiar with the taxation aspects. We would like to know how taxes are levied on goods imported by an agent. Is it the agency company that is responsible for payment, or do we, the principals, pay? Are the tax standards the same as for general imported goods? Are there any special regulations? We hope you can explain in detail. Thank you!
Trade Expert Insights Answers
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
The taxation of goods imported by an agent first depends on the agency method. If the agency company handles the import business in the name of the principal and at the principal's, the customs will issue the VAT special payment notice to the principal, and the principal will pay the import VAT and other taxes. The agency company will not pay. If the agency company imports goods in its own name, the customs will issue the special payment notice to the agency company, and the agency company will pay the import taxes and fees, and then settle with the principal.
The tax standards are basically the same as for general imported goods, with the applicable tax rate determined by the classification of the goods, and customs duties, VAT, etc. are levied based on the customs appraised value. The dutiable value usually includes the price of the goods, transportation and related expenses before unloading at the place of import in our country, and insurance premiums. However, in actual operation, special circumstances need to be considered, such as whether it involves goods subject to consumption tax, which may have different calculation methods and requirements.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
In general, whoever receives the customs payment notice is responsible for paying the tax. If the agent imports in its own name, then the agent pays the tax and subsequently collects the money from the principal.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
The tax standards are based on the actual situation of the goods, similar to general imports. For ordinary goods, customs duties and VAT are levied according to the corresponding tax rates. If there are goods subject to consumption tax, consumption tax will also be levied.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
If the principal and the agency company have a clear agreement on who bears the tax burden, the agreement will be followed. However, the customs will still determine the payer based on the aforementioned nominal holder.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
The customs appraised value is crucial as it is the basis for taxation. Freight, insurance, and other expenses for imported goods are all included, which will affect the final tax amount.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
The supporting documents for agency imports should be prepared, otherwise, it will affect the taxation process and amount. For example, invoices and contracts can assist customs in determining the situation of the goods.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
For agency imports in some special supervisory areas, the taxation policies may vary, so special attention should be paid to local regulations.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
If the imported goods have a certificate of origin and meet the preferential rules of origin, they may enjoy lower tax rates, which should be considered during taxation.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
The taxes involved in the import stage include customs duties, VAT, consumption tax, and sometimes anti-dumping duties, etc., which should be determined based on the specific situation of the goods.