When doing foreign trade business, there is confusion between the concepts of entrusted customs declaration and export agency. Questions arise as to whether entrusted customs declaration means export agency and the relationship and differences between the two. The best answer points out that entrusted customs declaration is not equivalent to export agency. Entrusted customs declaration is only one link in the process of export agency. Export agency covers a series of complex businesses from finding customers to collecting foreign exchange and verification, while entrusted customs declaration only targets specific matters of customs declaration.

Trade Experts Q&A
Consult with Our Trade Experts
Quick, reliable advice for all your trade needs, from sourcing to shipping.
You May Also Like
Which Incoterms are suitable for re-export trade? Which one is the best?
The company plans to engage in re-export trade and wants to know which Incoterms are generally used, and which ones can reduce risks and increase profits. The best answer indicates that FCA, CPT, CIP, and other Incoterms are commonly used in re-export trade. If risk reduction is desired, CIP is relatively better because the seller is responsible for insurance. However, the specific choice should consider factors such as the mode of transport and cargo characteristics. For example, FCA is suitable for multimodal transport, while CIP is preferred for high transportation risks.
Which Accounting Account Should Import Agency Fees Be Recorded In?
A company uses an agent to import goods and is unsure which accounting account import agency fees should be recorded in, also asking if the classification of fees differs under various business scenarios. The best answer states that if the fees are necessary to bring the goods to a usable or salable condition, they are usually recorded as procurement costs; if indirectly related, such as annual comprehensive service fees, they are recorded as administrative expenses. The judgment principles remain the same for general trade imports and processing trade imports.
Does Beijing Foreign Trade Export Agency Need to Declare Taxes?
Engaged in foreign trade export agency business in Beijing, with little understanding of taxation, inquiring about whether tax declaration is required and the involved tax types and procedures. The best answer points out that Beijing foreign trade export agencies need to declare taxes, involving value-added tax, corporate income tax, etc. Tax declaration has corresponding procedures, and it is recommended to hire professionals or entrust institutions like Zhongmaoda to handle it to avoid risks.
Does Re-export Trade Import Require Tax Payment? Please Help Me Answer!
The company plans to engage in re-export trade business and is unsure whether taxes are required for re-export trade imports. It is heard that the goods do not enter the country's customs territory and are merely in transit. The company wants to know if taxes are required and which tax types are involved. The best answer states that the key depends on whether the goods enter the country's customs territory. If they do not enter, regular import taxes and fees are generally not required. Temporary storage in a bonded zone and then re-export does not incur taxes, but sales after leaving the zone do. Stamp duty may also be involved, and policies should be understood in advance.
Does Re-export Trade Require Stamp Duty? Find Out Now!
A company involved in re-export trade inquired whether re-export trade requires stamp duty, and if so, what the payment standards are and if there are any preferential policies. The best answer states that re-export trade requires stamp duty because it involves goods purchase and sale contracts, which are taxable documents. It is generally paid under the 'purchase and sales contracts' tax item, calculated by multiplying the contract amount by a tax rate of 0.03%. Currently, there are no specific preferential policies, and enterprises should accurately calculate and timely declare.
Trade Expert Insights Answers
Olivia LiuYears of service:6Customer Rating:5.0
Foreign Exchange Risk ManagerStart a Chat
Agent import is not necessarily classified as general trade. General trade refers to a trade method where raw materials or components are purchased domestically, processed into finished products for export, or finished products are directly imported for domestic sale, characterized by the unilateral import or export of goods. Agent import is merely an act of entrusted agency, where an agent handles import-related matters on behalf of the importer.
If the goods imported via an agent meet the definition and regulatory requirements of general trade, and customs declarations, tax payments, etc., are handled under the general trade model, then it can be classified as general trade. However, if the goods are imported through an agent for specific purposes such as processing trade, then it does not fall under general trade. For instance, an agent importing a batch of ordinary daily necessities for domestic market sale might be considered general trade; but if an agent imports raw materials for processing and subsequent re-export, it would be processing trade. Therefore, the crucial factor in determining whether agent import constitutes general trade is the actual use and nature of the goods.
Anthony LuoYears of service:10Customer Rating:5.0
Trade Compliance ExpertStart a Chat
To determine if agent import falls under general trade, one must examine the contract terms and the goods' flow. If the imported goods directly enter the domestic circulation market and the agent assists in completing the import formalities, it is highly probable that it qualifies as general trade.
Emma ZhaoYears of service:3Customer Rating:5.0
Export Documentation SpecialistStart a Chat
From a customs declaration perspective, if the agent import follows general trade declaration procedures, submits the necessary general trade documents, and customs supervises it as general trade, then it can generally be classified as general trade.
David ChenYears of service:10Customer Rating:5.0
Trade Compliance AdvisorStart a Chat
Tax policies must also be considered. If the agent-imported goods are subject to tariffs, VAT, and other taxes under general trade policies, it is largely considered general trade.
Daniel KimYears of service:4Customer Rating:5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
If agent-imported goods involve special supervision zones or benefit from specific tax incentives, they may not necessarily be classified as general trade; a specific analysis would be required.
Sophia WangYears of service:6Customer Rating:5.0
International Logistics CoordinatorStart a Chat
Refer to the agreement between the agent and the principal. If it clearly specifies general trade operations and the nature of the goods aligns, then the agent import falls under general trade.
Michael ZhangYears of service:10Customer Rating:5.0
Customs Clearance SpecialistStart a Chat
Occasionally, if agent-imported goods are intended for special purposes such as donations or exhibitions, they cannot simply be classified as general trade.
Richard WuYears of service:8Customer Rating:5.0
Global Trade Operations ExpertStart a Chat
If agent-imported goods require subsequent deep processing for re-export, following a processing trade procedure, then it would not be considered general trade.
Robert TanYears of service:5Customer Rating:5.0
International Market Development AdvisorStart a Chat
If agent-imported goods are destined for a bonded warehouse and subsequently released for sale or other uses, their classification as general trade depends on the purpose of their release from the warehouse.