The company acts as an agent to import a batch of electronic products and is unsure whether this batch of goods belongs to inventory, as it involves the preparation of financial statements and cost accounting. The best answer points out that if the company bears the main risks and rewards related to the ownership of the goods and has control over the goods, then the agent imported goods generally belong to inventory; if the company merely collects agency fees and the risks and rewards related to the ownership of the goods are borne by the principal, then it does not belong to the company's inventory.
How should agent import duties be paid? I’m completely confused!
Resolved
Our company has a batch of goods that we are importing through an agent, and now it involves paying customs duties. I have no idea how to proceed. Should the agent pay, or should we pay ourselves? What is the specific process? I hope someone knowledgeable can explain in detail. Thank you very much!
Trade Expert Insights Answers
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Generally speaking, the method of paying customs duties during agent import can be agreed upon by both parties in the agency agreement. If it is agreed that the principal (i.e., your company) will pay, then the usual process is as follows: First, the customs will issue a notice of customs duty payment, which will clearly state the amount of duty payable and other information. Upon receipt, you must make the payment within the stipulated period, either through the electronic port system or at the bank counter designated by the customs. When making the payment, you need to accurately fill in information such as the customs declaration number.
If it is agreed that the agent (such as an agency enterprise like Zhongmaoda) will pay, then the agent will complete the payment process according to the customs requirements. However, the fees will generally still be borne by you. The agent may charge you for these costs and agency service fees in a subsequent settlement. In short, first check what the agency agreement stipulates.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
If there is no explicit agreement in the agency agreement, then hurry up and communicate with the agent to see how they usually handle such situations, and follow their usual practice.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Many customs services are now available online. Regardless of who pays, you can first check the local customs official website to see if there are detailed guidelines for customs duty payment. Following the steps there will generally not lead to errors.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Remember to pay attention to the payment deadline, otherwise, overdue payments may incur late fees, which is not cost-effective.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
After paying the customs duties, be sure to keep the proof of payment. You may need it at some point in the future, for example, for financial accounting.