A company plans to find an agent for importing goods and is confused about whose trade volume should be counted for the agency import, as it affects both parties' business expansion and policy enjoyment. The best answer states that the attribution of trade volume depends on the contract signing method and business model. If the contract is signed in the name of the principal and the cash flow and ownership belong to the principal, the trade volume is usually attributed to the principal; if the contract is signed in the name of the agent, it may be attributed to the agent company, or it can be clarified in the cooperation agreement.

Trade Experts Q&A
Consult with Our Trade Experts
Quick, reliable advice for all your trade needs, from sourcing to shipping.
You May Also Like
How is VAT deducted in agency import business? I'm totally confused!
Doubts exist regarding VAT deduction in agency import business, including who deducts, how to operate, and what documents are required. The best answer points out that usually the consignor uses the customs import VAT special payment notice to deduct input tax, and attention should be paid to information such as the header of the payment notice. Additionally, supporting documents such as the agency import agreement, the original payment notice, and relevant purchase contracts are needed to prove the authenticity of the business.
How exactly should I pay for the freight for entrusted agency import? I’m so worried!
Someone asked how to handle freight payment for entrusted agency import business, and is worried whether to pay the freight forwarder or the shipping company, and what payment methods are involved. The best answer is, if the agency contract stipulates that the agency company handles transportation and pays the freight, then pay according to their invoice details to the agency company; if it is agreed that you directly deal with the shipping company and pay the freight, then pay according to the shipping company’s requirements, and be sure to verify the information and keep the payment vouchers.
Are Agency Import Fees and Shipping Fees the Same Thing?
Confused about the relationship between agency import fees and shipping fees when handling import business, asking if agency import fees are shipping fees. The best answer states that agency import fees are not shipping fees. Agency import fees are service fees charged by the agency company for handling import business, covering services such as processing and information consultation. Shipping fees, on the other hand, are costs incurred for the transportation of goods. The two are essentially different and must be clearly distinguished when calculating costs.
Enterprise confirming revenue in agency import and export business always makes mistakes, how should it be confirmed?
The enterprise engaged in agency import and export business is confused about when to confirm revenue due to inconsistencies between customer payment time and goods delivery time. The best answer points out that the five-step model of Enterprise Accounting Standards No. 14 - Revenue should be followed, by steps such as identifying contracts and performance obligations, with the transfer of control as the key. Revenue should be recognized when each separate performance obligation is performed, and payments received and made should be treated as receivables and payables.
Who Should Purchase Foreign Exchange Under Agency Import? Please Help Me Out!
The company plans to conduct import business through an agent and is unsure about who should purchase foreign exchange under agency import, fearing risks from improper operation. The best answer indicates that the principal usually purchases foreign exchange, as they are the actual demander and beneficiary. However, in special circumstances, the agent can also purchase foreign exchange. Both parties must adhere to foreign exchange management regulations and provide relevant documents; otherwise, they may face penalties.
Trade Expert Insights Answers
Olivia LiuYears of service:6Customer Rating:5.0
Foreign Exchange Risk ManagerStart a Chat
The charging methods for agency import fees typically include the following situations.
Firstly, a common method is to charge a certain percentage of the value of the imported goods, with the general range possibly being around 1% - 5%. However, this can vary depending on the specific business and the agency company. For example, for goods with higher value and relatively simpler operations, the percentage might be lower.
Secondly, some agencies charge a fixed amount per order. For instance, regardless of the cargo value, a fixed fee of 5,000 yuan is charged per order. This is suitable for businesses with large fluctuations in cargo value but relatively stable operational processes.
There's also the possibility of a comprehensive charge, which considers both the percentage of cargo value and includes other actual miscellaneous expenses such as customs declaration fees and transportation fees. The specific fees depend on the negotiation with the agency and the complexity of the business.
David ChenYears of service:10Customer Rating:5.0
Trade Compliance AdvisorStart a Chat
Agency import fees are often charged based on the complexity of the business. For complex businesses involving special regulatory conditions or requiring additional permits, the fees may be higher.
Kevin HuangYears of service:3Customer Rating:5.0
E-Commerce Export AdvisorStart a Chat
Some agencies may charge fees separately, for example, one part for the agency fee, and then warehousing fees, loading and unloading fees, etc., are calculated separately. The sum of these will be the total agency import fee.
Robert TanYears of service:5Customer Rating:5.0
International Market Development AdvisorStart a Chat
The type of imported goods is also usually considered. If it involves high-risk or easily damaged goods, the agency import fee might also be relatively higher.