Our company plans to find a foreign trade agent to import goods and wants to know the general fee for foreign trade import agency and its calculation method. The best answer states there is no fixed standard; it is commonly charged at a rate of about 1%-5% of the imported goods' value, influenced by factors such as goods category, quantity, and service content. When looking for an agent, clarify the charging standards and compare multiple options.
Are products produced by an agent considered imported?
Resolved
I'd like to understand, if I find a factory in China to produce a product as an agent, but the product originally belongs to a foreign brand, and I am only responsible for the agency production and sales. In this situation, is this product considered imported? I'm a bit confused because from a brand perspective, it seems foreign, but production is domestic, and sales are also domestic. How exactly is this defined? I hope someone knowledgeable can help clarify.
Trade Expert Insights Answers
To determine if products produced by an agent are considered imported, the key lies in the criteria for defining the product's "nationality," usually based on the "substantial transformation" principle. If a substantial transformation occurs during the product's agency production domestically, for example, raw materials or components are processed and manufactured to form a new product with different characteristics and uses, and it meets conditions such as a change in tariff classification, it is generally not regarded as an imported product. For instance, if a foreign brand provides design and some core components, and a domestic agent factory assembles and completes final production without changing the product's tariff classification, it might be considered imported. However, if the domestic factory performs deep processing on the product, changing its tariff classification, it is not considered imported. If it's merely simple rebranding or similar without substantial transformation, it may still be classified as an imported product.
Furthermore, relevant regulations regarding the product's country of origin labeling, as well as any special trade arrangements or regulatory requirements, must be considered. In summary, a judgment cannot be made solely based on brand ownership or production location.
If all production stages of a product occur domestically, and only the brand belongs to a foreign entity, it is generally not considered imported. Imported products typically refer to goods entering the domestic customs territory from abroad.
It depends on whether it has gone through import procedures such as customs declaration. If there are no formal import declaration procedures, even if the brand is foreign and production is carried out by an agent domestically, it should not be considered an imported product.
From a sales perspective, if it is promoted as a domestic product during sales, and consumers perceive it as domestically produced, then it tends not to be considered an imported product.
Intellectual property aspects must also be considered. If brand authorization and other procedures are compliant, and production is domestic, with no products imported from abroad, it is generally not classified as imported.
If product quality standards follow domestic standards, and it circulates in the domestic market, it can generally be determined not to be an imported product.
Look at the source of the product's raw materials. If most raw materials are procured domestically, and the main production processes are completed domestically, it is usually not considered imported.
If there are relevant agreements for agency production that clearly define the product's nature, judging whether it is an imported product according to the agreement is more reliable.
From a logistics perspective, if there is no process of transportation from abroad to domestically, it is highly likely not considered an imported product.