The company plans to find an agent to handle export tax rebates and is asking if agents can handle export tax rebates, the specific operation, and the required documents. The best answer states that agents can handle export tax rebates, and it is necessary to find a professional agent company to sign an agreement. The operation process is to provide documents such as customs declaration forms after export, and the agent will declare through the system. Investigations may be encountered, requiring cooperation. Required documents include customs declaration forms, invoices, etc.
Who Should Bear the Taxes and Fees for Agent Export?
Resolved
My company plans to engage an agent for export business, but we are unclear about who should bear the taxes and fees for agent export. I'd like to know, under normal circumstances, whether various taxes and fees involved in agent export, such as customs duties and VAT, are borne by the principal or the agent? Are there any relevant industry practices or legal provisions that clarify this division of responsibility? I hope to receive a detailed and easy-to-understand answer. Thank you!
Trade Expert Insights Answers
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Generally, in agent export business, the party responsible for taxes and fees primarily depends on the agreement between the principal and the agent. From the perspective of industry practice and legal provisions, in most cases, the principal bears the taxes and fees. This is because the principal is the actual owner of the goods and the beneficiary of the export business. For example, customs duties are taxes levied on imported and exported goods; since the goods belong to the principal, it is reasonable for them to bear the customs duties. Regarding VAT, if the conditions for export tax refund are met, the principal can also enjoy the tax refund policy, while the agent only assists with the relevant procedures. However, there are special circumstances: if both parties explicitly stipulate in the agency agreement that part or all of the taxes and fees are to be borne by the agent, then the agreement shall be followed. Therefore, when signing an agent export agreement, it is crucial to clearly define the responsibility for taxes and fees to avoid subsequent disputes.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Usually, the principal bears the taxes and fees. After all, the goods belong to the principal, and the agent merely assists with the operational procedures; there is no reason for the agent to bear taxes and fees that rightfully belong to the principal.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Actually, the bearing of taxes and fees can be negotiated. If the agent wants to secure the business, they might agree to bear some of the taxes and fees, but this is less common; in most cases, the principal still bears them.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
According to common sense, the agent only charges an agency fee, and taxes and fees should not be borne by them. The principal should bear all types of taxes and fees involved in agent export.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If the principal and agent do not clearly define this in the agreement, disputes are likely to arise. Therefore, it's best to discuss and settle it in advance, rather than waiting for problems to occur before resolving them.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
In actual business, the principal mostly bears the taxes and fees because the principal has a direct connection to the goods and business profits, making it more appropriate for them to bear these costs.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
I think the key is the agreement. If the agreement states that the agent bears them, then they must bear them. If not specified, then it's conventional for the principal to bear them.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Generally, the principal bears them. The agent wouldn't bear taxes and fees without reason; if the agent were to bear them, the agency fee would likely increase.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Most of the time, the principal bears the taxes and fees. The main purpose of agent export is to help the principal complete the export process, not to bear the taxes and fees.