The company has goods for export and wants to understand how export customs declaration agency fees are charged, inquiring whether it's based on cargo value, the number of customs declarations, or other methods. The best answer states that there is no uniform standard for these charges, commonly billed per declaration, ranging from 200 - 800 yuan per declaration; it can also be charged as a percentage of cargo value, typically 0.1% - 0.5%. Factors such as cargo weight and volume may also be considered. It is advised to compare multiple agents to select one offering good value for money.
How to correctly account for export agency fees?
Resolved
Our company has export business that involves export agency fees. We haven't dealt with this kind of accounting before and are not very clear on how to book it. We want to know which account export agency fees should be debited to in accounting treatment, is it sales expenses? How should the specific accounting voucher be filled out? We hope that knowledgeable friends can explain in detail, preferably with examples, so that it is easier to understand.
Trade Expert Insights Answers
Export agency fees are generally debited to the sales expense account. When the invoice for export agency fees is received, assuming the export agency fee is 1000 yuan and paid by bank deposit, the accounting treatment is as follows:
Debit: Sales Expenses - Export Agency Fee 1000
Credit: Bank Deposit 1000
If the agency fee is paid first and the invoice is received later, upon payment:
Debit: Prepaid Accounts - Export Agency Fee 1000
Credit: Bank Deposit 1000
Upon receiving the invoice:
Debit: Sales Expenses - Export Agency Fee 1000
Credit: Prepaid Accounts - Export Agency Fee 1000
The primary reason for this treatment is that export agency fees are expenses incurred for the sale of goods, which fits the definition of sales expenses. Through the above entries, the income and expenditure of export agency fees can be clearly reflected.
If the amount of export agency fee is small, it can also be simplified. It can be directly debited to the current period's profit and loss upon payment. For example, debit: Administrative Expenses - Export Agency Fee, Credit: Bank Deposit. However, it is usually recommended to debit it to sales expenses.
It should be noted that agency fee invoices must be legal and compliant to be deductible before corporate income tax. The summary in the bookkeeping should clearly state which export business the agency fee is for, to facilitate future audits.
If the company settles export agency fees in foreign currency, it should be converted into RMB at the exchange rate of the day for bookkeeping. The difference arising from exchange rate fluctuations should be debited to Financial Expenses - Exchange Gain/Loss.
If the export agency fee is related to the export of a specific product, a detailed account can be set up under sales expenses, such as Sales Expenses - Export Agency Fee - [Product Name], to accurately calculate costs.
When export agency fees are paid through a freight forwarder or other third party, in addition to the above bookkeeping, keep the agreements with the third party properly to prepare for tax inspections.
If a portion of the export agency fee needs to be refunded to the customer, it is normally debited to sales expenses upon payment. When refunded, make the opposite entry to offset the sales expenses.
If the company has a large volume of export business, it is recommended to establish a dedicated ledger to record export agency fees. Combined with accounting vouchers, it will be more convenient to manage and expenses.
During the annual tax reconciliation, the export agency fees should be reviewed to see if they meet the deduction standards. If not, tax adjustments should be made.