Who Owns Agency Export-Import Tax Refunds? Find Out Now!

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My company plans to find an agent to help with export-import business. Now there's a question we're not very clear about: who owns the agency export-import tax refunds? Is it the entrusting party, which is our company, or the agent? Are there any rules or influencing factors involved? We hope a professional can help answer this so we can be confident when looking for an agent to cooperate with and avoid disputes arising from this.
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Emma Zhao
Emma ZhaoYears of service:3Customer Rating:5.0

Export Documentation SpecialistStart a Chat

Agency export-import tax refunds generally belong to the entrusting party. In principle, export tax rebates are granted by the state to enhance the competitiveness of export commodities by refunding the VAT and consumption tax actually paid on export goods during their domestic production and circulation stages. The entrusting party is the actual producer or operator of the goods, bearing the domestic tax burden, so the tax refund should belong to the entrusting party.

In practice, the entrusting party and the agent will sign an agency agreement to clarify the ownership of the tax refund. If the agreement is not clear, it should also belong to the entrusting party according to relevant regulations and industry practices. However, the agent provides services during the tax refund process and will charge a certain agency fee; this part of the fee does not affect the ownership of the tax refund. In short, by signing a detailed and standardized agreement before cooperation, clarifying the rights and obligations of all parties, disputes regarding tax refund ownership can be effectively avoided.

References: Unveiling Import Freight Forwarding Fee Tax Rates! 90% of Enterprises Get it Wrong
David Chen
David ChenYears of service:10Customer Rating:5.0

Trade Compliance AdvisorStart a Chat

Normally, it belongs to the entrusting party. After all, the goods belong to the entrusting party, and the related taxes are also borne by the entrusting party; the agent merely helps with the process.

Linda Guo
Linda GuoYears of service:3Customer Rating:5.0

Trade Dispute MediatorStart a Chat

Generally, whoever bears the tax burden of the goods owns the tax refund, so it's highly likely to be the entrusting party. However, it depends on what both parties agree upon in the contract.

Daniel Kim
Daniel KimYears of service:4Customer Rating:5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

Unless otherwise specifically agreed upon, as per usual practice, agency export-import tax refunds belong to the entrusting party, and the agent only assists with the handling.

Thomas Li
Thomas LiYears of service:7Customer Rating:5.0

Import Licensing AdvisorStart a Chat

It should belong to the entrusting party. The agent's primary responsibility is to help handle export-import and tax refund procedures, and the right to the tax refund belongs to the entrusting party.

Richard Wu
Richard WuYears of service:8Customer Rating:5.0

Global Trade Operations ExpertStart a Chat

Normally, it's the entrusting party. However, if the entrusting party and the agent have other provisions regarding tax refund ownership in their agreement, then it should follow the agreement.

Michael Zhang
Michael ZhangYears of service:10Customer Rating:5.0

Customs Clearance SpecialistStart a Chat

It's generally defaulted to the entrusting party, because the entrusting party is the owner of the goods and bears the tax burden; the agent only provides agency services.

Anthony Luo
Anthony LuoYears of service:10Customer Rating:5.0

Trade Compliance ExpertStart a Chat

Most of the time, it belongs to the entrusting party. However, to avoid disputes, the entrusting party and the agent must clearly state the issue of tax refund ownership in their cooperation agreement.

Robert Tan
Robert TanYears of service:5Customer Rating:5.0

International Market Development AdvisorStart a Chat

From a general perspective, the owner of agency export-import tax refunds is the entrusting party, which is based on the principle of tax burden bearing.

Sophia Wang
Sophia WangYears of service:6Customer Rating:5.0

International Logistics CoordinatorStart a Chat

In principle, it belongs to the entrusting party. If the agreement between both parties specifies otherwise, then the agreement shall be followed; everything is subject to the agreement.

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

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