Inquiring about the taxes such as customs duties and VAT involved in the trade volume of imported goods through Zhongmaoda agency. The best answer points out that if the agent simply acts on behalf of the principal to declare and pay taxes in the principal’s name, the taxpayer is the principal; if the agent imports in their own name, the agent is the taxpayer. It also suggests that both parties clarify tax payment terms in the contract to avoid disputes.
Whose Proxied Import Trade Volume Should Be Counted? Come and Find Out!
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Our company plans to find an agency company to help import a batch of goods, and we are a bit confused about whose trade volume should be counted for agency import. If we find an agency company, and they handle many of the procedures during the import process, then should the trade volume be counted as ours (the principal) or the agency company's? This affects both parties' potential future business expansion and enjoyment of relevant policies. We hope someone can provide a detailed explanation.
Trade Expert Insights Answers
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
The attribution of trade volume for agency import is primarily determined by the method of signing the trade contract and the actual business model. If the agent signs the import contract in the name of the principal, and the cash flow, such as payment for goods, is directly paid by the principal to the overseas supplier, and the ownership of the goods directly belongs to the principal, then in this situation, the trade volume is usually attributed to the principal, and the agent only provides services and charges a service fee.
If the agent signs the import contract in their own name, and the cash flow also circulates through the agency company, and the goods are first transferred to the agent company's name before being handed over to the principal, then in this situation, the trade volume is very likely to be attributed to the agent company. However, in actual operations, both parties can also clarify the attribution of trade volume in the cooperation agreement to avoid subsequent disputes and protect the rights and interests of both parties.
It is recommended that your company have sufficient communication and negotiation on key issues such as trade volume attribution before cooperating with an agency company.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Generally speaking, if the agent merely helps with the procedures, and all rights and interests related to the goods belong to you, then the trade volume should be counted as yours.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Look at the customs declaration form. Whichever party's name is used for customs declaration, the trade volume will tend to be attributed to that party. If the customs declaration is made in the name of the agency company, the trade volume may be attributed to the agency company.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If the agency company is responsible for advancing funds to purchase goods and then selling them to you, the trade volume might be attributed to the agency company.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
From a financial perspective, whoever ultimately bears the cost and profit of the goods, the trade volume may be attributed to that party. However, the specifics still depend on how the contract is signed.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
If the agent participates in market negotiations, procurement decisions, and other activities that have a substantial impact on the trade, the trade volume may be attributed to the agent company.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
In actual business operations, if the agency company provides in-depth services such as supply chain integration, the attribution of trade volume may lean towards the agency company.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Sometimes local policies also affect the calculation and attribution of trade volume. It is best to consult the local commerce department.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Both parties can negotiate the attribution of trade volume based on their contribution to the trade. As long as it is clearly stated in the contract, it can also avoid disputes.