Can agency import be operated in the same way as self-operated import?

Resolved
  • 匿名
  • 134
  • 9 Answers
NO.20251101*****

[Challenge] *****, [Solution] *****, [Process & Cost] *****

Access Full Plan
My company recently has import business. Previously, it has always been self-operated import, and we are quite familiar with the procedures. Now we want to try agency import. I want to ask if agency import can be operated in the same way as self-operated import? What are the differences between the two in terms of operational procedures, responsibilities and obligations, financial handling, etc.? I hope experienced friends can explain it to me so I can have a clear understanding. Thank you.
Trade Experts Q&A
Trade Experts Q&A

Consult with Our Trade Experts

Quick, reliable advice for all your trade needs, from sourcing to shipping.

Trade Expert Insights Answers

Agency import and self-operated import cannot be operated in exactly the same way. Regarding operational procedures, self-operated import is entirely led by the enterprise itself, from sourcing suppliers and signing contracts to customs declaration and clearance. However, in agency import, the agent primarily handles related matters entrusted by the principal party; for example, the principal party is responsible for selecting suppliers, while the agent assists with contract signing, customs clearance procedures, etc.

In terms of responsibilities and obligations, self-operated import enterprises are responsible for the entire import process, including cargo quality, transportation risks, etc. When it comes to agency import, the agent generally only bears responsibility for faults caused by their own errors, while major responsibilities, such as cargo quality, lie with the principal party.

Regarding financial handling, all income and expenses for self-operated import are recorded in the enterprise's own accounts. Agency import, however, is relatively more complex; the agent may be involved in collecting and making payments on behalf of others, handling service fees, and other financial matters. Therefore, agency import cannot be simply operated according to self-operated import methods, and it is necessary to fully understand the differences between the two and handle them cautiously.

References: Purchasing Agents Are Dead! 2024 Cosmetics Imports Must Go Through Agencies

Agency import and self-operated import are different. Agency import requires considering the relationship between the principal and the agent, involving more document exchanges and communication and coordination, and thus cannot simply replicate self-operated import procedures.

Financially, cost accounting for self-operated import is straightforward. Agency import involves accounting for service fees, etc., so finances cannot be handled as with self-operated import.

Regarding operational procedures, agency import may require waiting for instructions from the principal party, unlike self-operated import which has strong autonomy, so it certainly cannot be operated like self-operated import.

Responsibilities and obligations are different. Agency import requires clarifying the responsibilities of both parties, unlike self-operated import where the enterprise bears all responsibility, thus it cannot be handled like self-operated import.

Agency import must be conducted according to the agency contract, which differs from the flexibility of self-operated import, so self-operated import methods cannot be used.

During customs declaration, agency import requires submitting additional documents such as an agency agreement, which is different from self-operated import, thus the operations are different.

Regarding the transfer of cargo ownership, self-operated import enterprises directly acquire ownership. Agency import has specific regulations, so it cannot be handled like self-operated import.

From a tax perspective, the tax handling involved in agency import differs from that of self-operated import, leading to different operational methods.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

You May Also Like

How to Grow a Business of Agency Importing Products? What are the Practical Methods?

Stating that one's agency import product business is not performing well, asking how to grow it. The best answer indicates that growing the business requires focusing on product selection, researching and choosing popular and high-potential products; expanding the market both online and offline; maintaining customer relationships well and providing quality service; optimizing the supply chain to ensure product quality and stable supply, reduce costs, and enhance competitiveness.

Is the agency import customs declaration process complicated? How to do it specifically?

The company is preparing to find an agent for imported goods and wants to understand how to declare imports through an agent, whether the process is complicated, what information is needed, and what precautions to take. The best answer points out that it is necessary to clarify the cargo information, prepare basic documents such as contracts, confirm that the agent has import qualifications, declare through the electronic port, and after customs review and inspection (if any), pay taxes and fees to complete customs declaration. During the process, ensure the authenticity and accuracy of the documents and be familiar with policies and regulations.

Do you know how to deduct for imported goods through an agent?

A company imported goods through an agent and does not know how to make deductions. They want to understand the relevant procedures, precautions, required documents, and deduction tax rates. The best answer suggests that a legal and valid Customs Import Value-Added Tax Special Payment Voucher is required. If the payment voucher has double headings, the principal can directly deduct it. General VAT taxpayers importing goods for taxable items need to select and confirm on the platform. After audit and verification, they can declare for deduction, applying the corresponding tax rate based on the item category. It is also important to retain relevant documents.

During agency import, who is actually responsible for paying VAT?

A company intends to import goods through an agency. They have doubts about who the taxpayer is for VAT in agency import business, asking whether it is the principal or the agent, and if there are any special regulations. The best answer indicates that generally, the recipient of the imported goods or the unit/individual handling customs declaration is responsible for payment. This needs to be determined based on the substance of the business, such as the name used for customs declaration and contractual agreements, with factors like whose name the import is under and who receives the payment notice influencing the determination of the taxpayer.

What are the unavoidable risks in agency import and export trade?

Planning to find an agency company for import and export trade, and want to understand the risks involved. The best answer points out that agency import and export trade involves risks such as credit, market, policy, transportation, exchange rate, and documentation. It emphasizes that these risks need to be handled cautiously to help prepare in advance and avoid pitfalls during the trade process.

How to Handle Agency Import and Export Tax Refunds? Does anyone know?

The company has import and export business and wants to find an agent to handle import and export tax refunds, inquiring about the specific handling process, required documents, and precautions. The best answer points out that first, choose a reliable agent such as Zhongmaoda, prepare documents such as customs declaration forms, and the agent will assist in entering the system for pre-declaration and formal declaration. During the handling process, ensure that the documents are true, accurate, and complete, pay attention to the progress and declaration deadline.