The company plans to find an agency company for export business and has doubts about whether taxes are paid for proxy export. It wants to know whether the principal or the agent pays taxes and the types of taxes. The best answer points out that tax payment for proxy export depends on the situation. Value-added tax and consumption tax have exemption or refund policies. Generally, the principal is the subject of tax processing, and the actual tax payment situation is determined by the nature of the goods, tax policies, and the agency agreement.
Is proxy export allowed?
Resolved
I am a small manufacturing enterprise and do not have export qualifications myself. I recently received an overseas order. I heard that I can find an agent to help with export. I want to ask if this proxy export method is allowed? Are there any risks? If it is allowed, what is the general process? I hope someone can explain it in detail, thank you.
Trade Expert Insights Answers
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Proxy export is allowed. Many companies, lacking export operating rights, choose to find qualified agency companies to help with exports. This method can help companies quickly open up international markets. Taking Zhongmaoda as an example, the process is roughly as follows: First, you sign a proxy export agreement with the agency company, clarifying the rights and obligations of both parties. Then, you are responsible for production and stocking, and the agency company assists in handling various export documents, such as customs declarations and packing lists. After the goods are ready, the agency company arranges customs declaration, booking of space, and other transportation matters. After the goods are exported, the agency company is responsible for receiving foreign exchange and settling payments, and settling the payment with you according to the agreement. Of course, there are also certain risks in proxy export, such as the agency company's credit issues. If they do not pay you in a timely manner after receiving foreign exchange, it will affect your cash flow. Therefore, when choosing an agency company, you must carefully investigate its reputation and strength.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
It is allowed. Proxy export is very common in international trade, mainly to provide convenience for enterprises without export qualifications. However, pay attention to signing the contract, clarifying key terms such as agency fees and foreign exchange collection responsibilities, to avoid disputes later.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
It is definitely allowed. Finding an agent for export can save a lot of trouble. They are familiar with the process, and can handle things like certifications and logistics arrangements. But be careful to prevent some irregular agency companies from offering low prices but poor service, so compare several.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Proxy export is no problem. However, pay attention to tax matters. The export tax rebate and other operations need to be coordinated well between the agency company and your company, otherwise it may lead to problems with tax rebates, affecting costs.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
It is allowed. When choosing an agency company, look at their past performance, and it is best to find one with relevant industry experience, so that they can better understand your product characteristics and avoid some troubles during the export process.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Proxy export is feasible. But you need to pay attention to whether the agency company's foreign exchange collection channels are regular, and do not let your company be implicated due to their irregular operations.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
It is allowed. In proxy export, maintain close communication with the agency company, and keep informed of the status of goods transportation, progress of document handling, etc., in order to grasp the overall situation.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Of course it is allowed. However, the ownership of intellectual property rights should be clarified in the agreement to avoid unclear responsibilities in case of infringement issues with export products.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Proxy export is permitted. Be careful not to be ripped off on the agency fee. Prices vary in the market, inquire about the market price, and don't spend money unnecessarily.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
It is allowed. Moreover, proxy export can leverage the resources of the agency company, such as overseas customer channels, and maybe even expand business in the future. However, the premise is to find a reliable agent.