Planning to engage in the re-export trade of imported cars, inquiring about the existence of taxes, involved tax types and rates, and whether they vary by vehicle brand, model, or re-export region. The best answer states that re-export trade of imported cars does involve taxes, including customs duty, value-added tax, and consumption tax. The tax rates vary depending on the country of origin, engine displacement, etc., and policies of the re-export region also have an impact. It is necessary to understand the tax policies in detail before commencing business.
In Agency Import Business, How to Understand and Operate the Principle of "Whoever Imports, Whoever Remits"?
Resolved
Our company plans to import a batch of goods through an agent. We have heard of the "whoever imports, whoever remits" rule and are not very clear about the specifics. We would like to ask, in the case of agency import, is it us, the client, who remits the payment, or the agent? If the operation is improper, are there any risks? How should we correctly follow this principle for remittance operations?
Trade Expert Insights Answers
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
In agency import business, the principle of "whoever imports, whoever remits" requires clarifying the import subject. Generally, if the import declaration and a series of import operations are conducted in the name of the agent, then the agent is the import subject and should remit the payment. This is because, from the perspective of foreign exchange management and trade processes, the remitter must be consistent with the subject of the import operation.
If the import is conducted in the name of the client, the client is the import subject and should remit the payment. Improper operation may lead to regulatory risks from foreign exchange management authorities, such as affecting the company's foreign exchange business credit rating and leading to limitations in subsequent business. The correct approach is to first determine the nominal import subject. If the agent imports, the agent needs to prepare import contracts, customs declarations, and other relevant remittance documents to apply to the bank for remittance; if the client imports, the client remits according to the required documents.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
If the agent remits the payment, it is essential to communicate the fund flow with the client in advance to avoid subsequent settlement issues.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Regardless of who remits the payment, all relevant remittance documents should be properly stored for future verification. Documents such as import customs declarations and commercial invoices are all indispensable.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
The client should supervise the agent's remittance process to ensure fund security, as the goods are needed by the client.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
From a tax perspective, who remits the payment may also affect the handling of certain taxes and fees, so it is advisable to consult a tax advisor in advance.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
If the agency import involves special regulatory zones, remittance rules may vary slightly, so special attention should be paid.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Banks are quite strict in reviewing remittance applications, so documents must be prepared completely and accurately, otherwise, it is easy to delay the remittance progress.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
It is best to clearly define the responsible party for remittance in the agency import contract to avoid disputes.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
For companies operating agency import remittance for the first time, it is recommended to first consult with the local foreign exchange administration department to understand the specific requirements.