The company plans to find an export agent to handle business and is unclear about how export agents declare. They want to understand the detailed steps and key points from preparation to completion of the declaration. The best answer states that the declaration is divided into three stages: preparation, operation, and completion. The preparation stage involves collecting documents related to operating rights and other materials, and signing the agency agreement; during operation, log in to the electronic port system to enter customs declaration information and send declaration data; finally, pay taxes and fees to complete the declaration, paying attention to the accuracy and timeliness of the information.
Will agency export be considered tax evasion? Come and find out!
Resolved
Our company plans to use an agency company for export business and has heard that some operations may involve tax evasion, which makes us very worried. I want to ask if agency export itself is considered tax evasion? If not, what aspects need special attention during the operation to avoid tax evasion? I hope friends who understand can help answer this, so I can have a clear understanding.
Trade Expert Insights Answers
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Agency export itself is not equivalent to tax evasion. Agency export is a legal trade operation mode, where the agency company assists the principal in handling export-related matters. However, if there are behaviors such as intentionally concealing income, falsely reporting the value of goods, or defrauding export tax rebates during the agency export process, it may constitute tax evasion.
For example, in order to obtain more export tax rebates, the declared price of goods is intentionally increased; or after export, the agent or the principal conceals export income and fails to declare and pay taxes according to regulations.
To avoid such situations, both the principal and the agent should strictly abide by laws and regulations, truthfully declare all information about the exported goods, including quantity and value. At the same time, standardize financial accounting, promptly and accurately record the income and expenditure of export business, and pay relevant taxes and fees according to regulations. Both parties should sign a detailed agency agreement, clarifying their respective responsibilities and obligations in taxation, and ensuring that the business is conducted legally and compliantly.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Normal agency export operations will not lead to tax evasion, but if the agency company is not standardized and privately withholds export funds without declaration, then there will be a problem. Therefore, when choosing an agent, choose a reputable and credible one, like Zhongmaoda, not just a cheap "small workshop" type of agency.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
If the customs declaration data is falsified during agency export, such as declaring products with low tax rebate rates as products with high tax rebate rates to get more rebates, this is tax evasion. Enterprises should pay attention to supervising the agency company and ensure the authenticity of customs declaration data.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
If during the agency export process, fake invoices are used to increase costs, reduce profits, and thus pay less tax, this is definitely tax evasion. Therefore, the authenticity of invoices must be strictly verified.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Some companies may transfer income to overseas accounts through agency export to conceal it and not declare domestic taxes, which is illegal. Companies should be self-disciplined and declare and pay taxes according to regulations.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
As long as the declared information about goods, income, etc., is truthful and follows the prescribed procedures, agency export will not involve tax evasion. The key is that both the enterprise and the agent operate with integrity and abide by the law.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
If during agency export, customs duties, value-added tax, etc., that should be paid are intentionally not paid or underpaid, and tax is evaded through improper means, then it is tax evasion. Tax calculation and payment should be done properly.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
When an enterprise and an agent engage in agency export, they cannot violate regulations for the sake of tax savings. Falsely creating export business to defraud taxes is definitely not allowed. Normal declaration and payment of taxes will not carry the risk of tax evasion.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
During agency export, if there is falsification of information such as the origin of goods to obtain tax benefits, it also constitutes tax evasion. All declared information must be guaranteed to be true.