Someone inquired about the taxes payable for their company’s agency import business and whether only customs duty is required. The best answer points out that agency import involves not only customs duty but possibly also value-added tax, with specific calculation methods for the tax base. If the imported goods are taxable consumption goods subject to consumption tax, then consumption tax must be paid. Other taxes and fees collected by customs may also be involved, depending on the specific imported goods.
How to correctly handle agency export customs duties? Come and get some tips!
Resolved
Our company has engaged an agency to help export goods, and now there's an issue with handling export customs duties. We're not entirely sure how to proceed. We'd like to ask everyone for advice: are there any specific points to note in the financial handling of agency export customs duties? Is it the agency's responsibility to pay, or do we pay ourselves? What is the payment process? Also, during the customs declaration process, how should the procedures related to customs duties be handled? We hope experienced friends can share relevant knowledge. Thank you!
Trade Expert Insights Answers
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
In the handling of agency export customs duties, the first step is to clarify the entity responsible for paying the customs duties, which is usually determined by the agency agreement. If the agreement stipulates that the principal bears the responsibility, the principal needs to transfer the funds to the agent, and the agent will pay on their behalf. If the agent is responsible, the agent pays the customs duties themselves.
In terms of financial handling, if the principal bears the customs duties, when the agent receives the funds from the principal, they debit "Bank Deposits" and credit "Other Payables." When paying customs duties, they debit "Other Payables" and credit "Bank Deposits." When the principal pays the funds, they debit "Selling Expenses (if included in cost, debit the relevant cost account)" and credit "Bank Deposits."
During the customs declaration process, the agent needs to accurately fill in the customs duty-related information on the customs declaration form, provide complete supporting documents, and cooperate with customs inspections to ensure accurate and compliant payment of customs duties.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Generally, agency companies are more familiar with the process. You can communicate with the agency company and ask them to provide a detailed customs duty payment plan and timetable, and prepare funds and handle relevant procedures according to this.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
If exporting on an FOB (Free On Board) basis, the customs duties are generally borne by the principal. However, regardless of who bears the responsibility, it should be clearly stated in the contract to avoid future disputes.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
When paying customs duties, pay attention to currency exchange rates. Calculate the customs duty amount according to the exchange rate specified by the customs to avoid calculation errors.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
After the agency company pays the customs duties, they will provide you with the corresponding tax payment certificate, which is an important basis for financial bookkeeping. Be sure to keep it properly.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Before customs declaration, ensure that the classification of the goods is accurate, as different classifications correspond to different customs duty rates, which will directly affect the customs duty amount.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
If there are issues with customs duty payment, such as the customs questioning the declared price, the agency company and the principal should actively cooperate with the customs by providing relevant supporting documents and explaining the situation.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Regularly pay attention to adjustments in national customs duty policies and communicate with the agency company to see if there are any impacts on your export business, and make preparations in advance.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Some goods may be eligible for preferential customs duty policies. The agency company and the principal should confirm whether the goods meet the conditions and apply for preferential treatment in a timely manner to reduce costs.