Planning to conduct re-export trade business and wanting to understand the types of taxes, tax rates, and payment precautions involved. The best answer indicates that re-export trade mainly involves Value Added Tax (VAT) (usually not levied on re-exported goods, but 6% for agency services), Corporate Income Tax (CIT) (basic rate 25%, preferential rates available if eligible), and Stamp Duty (e.g., 0.03% for sales and purchase contracts). When paying, it's crucial to accurately calculate, timely declare, and retain relevant documents.
What are the key points to pay attention to in agency export, can you all share?
Resolved
Our company plans to find an agent for export business. We haven't dealt with this before, so we don't know what to pay attention to in agency export? We hope experienced friends can share some insights, for example, regarding the selection of agency companies and the key areas in each stage of the export process that need special attention to avoid pitfalls? Please give us some suggestions, thank you!
Trade Expert Insights Answers
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
There are several key aspects to focus on in agency export. Firstly, when selecting an agency company, its qualifications and reputation should be examined. This can include checking its business license, industry reputation, etc. Reputable and professional agency companies like Zhongmaoda can guarantee their qualifications and reputation. Secondly, contract terms need to be carefully considered to clarify the rights and obligations of both parties. Crucial clauses such as agency fees, tax rebate attribution, and risk bearing should not be ambiguous. Thirdly, during the export process, document handling must be rigorous. All sorts of documents, such as customs declarations and packing lists, must be accurate and error-free, otherwise, it may affect cargo clearance and subsequent tax rebates. Simultaneously, close attention should be paid to the logistics status of the goods to prevent loss or delay. Furthermore, the tax rebate process should be followed up promptly, understanding changes in tax rebate policies and preparing the necessary documents for tax rebates to ensure smooth receipt of tax rebate funds.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Pay attention to agency export fees and avoid unreasonable charges. Negotiate the fee standards in advance, and see if it is charged as a percentage or a fixed amount, to avoid price increases later.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Communication is important. Maintain close contact with the agency company to stay informed about the export progress and resolve any issues quickly. For example, changes in the cargo loading time should be known promptly.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Do not neglect intellectual property rights. Exported goods must not infringe on intellectual property rights. Both the agency company and the principal are responsible. Conduct preliminary investigations in advance.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Understand the scope of services provided by the agency company. Some may only be responsible for certain parts of the process, such as not including the application for certificates of origin. Avoid issues that might affect the export later.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Prioritize fund security. Involving the receipt and payment of goods, choose a reliable agency company to ensure the normal flow of funds.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Focus on the agency company's ability to handle emergencies, such as customs inspections, to see if they can respond effectively.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Do not relax control over the quality of exported products. This relates to customer satisfaction and future cooperation. The agency company should also assist in supervision.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Pay attention to the agency company's relationship with banks. A good relationship can facilitate export financing and other business operations, such as export usance letters of credit.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Familiarize yourself with the laws and regulations involved in agency export in advance to avoid violations due to lack of knowledge, which could lead to losses for both parties.