How exactly is the agency import settlement statement calculated? I'm completely confused!

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I'm new to the agency import business and have no idea how to calculate the agency import settlement statement. How are things like import goods price, import duty, and VAT reflected and calculated in the settlement statement? Also, how are agency fees usually included? I hope someone knowledgeable can explain it to me in detail. Thank you very much!
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Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

The calculation of an agency import settlement statement indeed requires clarifying a few key parts.

Firstly, the import goods price usually refers to the purchase price agreed upon in the contract. For example, if a batch of equipment is purchased for $100,000, it will be converted into RMB according to the agreed exchange rate and included in the settlement statement.

The calculation of import duty is based on the dutiable value of the goods multiplied by the import duty rate. The dutiable value is generally the CIF price (Cost, Insurance, and Freight) of the goods. If the import duty rate is 5% and the CIF price is 800,000 RMB, then the import duty is 800,000 × 5% = 40,000 RMB, and this 40,000 RMB should be included in the settlement statement.

For VAT, it's calculated as (Dutiable Value + Import Duty) × VAT Rate. Using the data above, if the VAT rate is 13%, then the VAT would be (800,000 + 40,000) × 13% = 109,200 RMB, which also needs to be listed in the settlement statement.

Finally, regarding the agency fee, it is generally charged as a certain percentage of the import goods value. For instance, if it's 1% of the goods value, and the goods value is 1,000,000 RMB, the agency fee would be 10,000 RMB, which is also included in the settlement statement.

References: Proxy Import Exchange Rate Differences: Do You Truly Understand Them?
Sophia Wang
Sophia WangYears of service：6Customer Rating：5.0

International Logistics CoordinatorStart a Chat

The import goods price is determined by the actual purchase contract amount, converted into RMB. Import duty and VAT are calculated according to the prescribed tax rates and added. The agency fee is usually a certain proportion of the goods value, with the specific proportion agreed upon with the client and written into the agreement, and then included in the settlement statement.

Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

In the settlement statement, the import goods price is the converted purchase cost. Import duty is calculated according to the customs-determined tax rate and dutiable value, and VAT is calculated similarly. For the agency fee, it's commonly charged as a proportion of the goods value. Summarizing all these into the settlement statement should suffice.

David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

Remember to convert the goods price according to the purchase contract. Calculate the import duty and VAT accurately using the relevant tax rates and formulas. Agency fees can be charged as a fixed amount or a proportion, depending on the agreement with the client, and then included in the settlement statement.

Emma Zhao
Emma ZhaoYears of service：3Customer Rating：5.0

Export Documentation SpecialistStart a Chat

First, determine the import goods price. Import duty is calculated by multiplying the goods price under relevant circumstances by the tax rate, and VAT is similar. The agency fee depends on the agreement, whether it's a proportion or a fixed amount, and it should be included in the corresponding section of the settlement statement.

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