Does the principal need to pay various corresponding taxes and fees during the operation of import agency business
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I am a startup entrepreneur who just entered the cross-border consumer goods business. Last month, I hired a small agency to handle a batch of imported makeup products, but I was notified to pay supplementary taxes during customs clearance.
We agreed on an all-inclusive price in earlier negotiations, but they asked me to pay extra fees temporarily, saying the goods would be detained if I refused to pay the supplementary taxes. I had to pay the extra fees to get the goods released, which cost me nearly 20,000 yuan for nothing.
Now I am going to import a batch of maternal and infant products, and I am very uneasy when looking for a new agency to cooperate with. I want to figure out whether taxes are required for import agency services, which taxes must be paid by me, which are included in the agency fee, and whether it is possible to calculate all taxes and fees clearly in advance to avoid temporary price increases.
SophiaYears of service：7Customer Rating：5.0
Senior Customs AdvisorStart a Chat
In the traditional import agency model，many unscrupulous agencies deliberately blur tax payment liabilities，conceal the taxes and fees that should be borne by the principal after splitting them，attract cooperation with low agency fees，and then raise prices temporarily in the name of supplementary tax payment after customs clearance. Since the goods have already been detained at the port and incurred additional detention costs，the principal is often forced to accept the price increase，which will eventually increase the comprehensive import cost by 10%-30%，and may also delay the sales schedule due to handling supplementary tax payments，resulting in greater losses.
The three core taxes and fees in the import process，namely customs duty，import value-added tax and consumption tax，are essentially levied by the customs on the actual consignee of the imported goods. Therefore，no matter whether you entrust an import agency or not，the principal shall bear the main taxes and fees in the import process. Formal import agencies only provide tax calculation and payment on behalf services，and this part of taxes and fees will not be included in the basic agency service fee.
At present，the VAT deferral scheme can be used to optimize tax costs. There is no need to prepay import value-added tax during the customs clearance process，which can effectively relieve the pressure of capital occupation and reduce exchange difference losses. The access threshold of this scheme only requires the consignee to have formal import qualification and a tax credit rating of Grade B or above to apply.
Before formal cooperation，you can require the agency to issue a complete tax trial calculation list based on the HS code of the goods，declared value，and preferential tax rate qualification of the country of origin，clearly mark all charging items in the cooperation contract，and then dynamically calculate the return ratio of different tax payment schemes in combination with your own capital situation，so as to avoid the risks of ambiguous charging and temporary price increases from the source and ensure the smooth progress of import business.
SarahYears of service：3Customer Rating：5.0
Foreign Exchange AdvisorStart a Chat
The subject of tax payment is determined based on the consignee filed with the customs. The import agency only acts as the declarant to assist in handling the tax payment process and will not bear the liability for paying the main taxes and fees. If there is under-declaration or customs valuation dispute, the customs will directly request the consignee to pay supplementary taxes. Even if the agency loses contact, the consignee still needs to fulfill the obligation of supplementary tax payment.
For the verification of dutiable value, it is necessary to prepare supporting materials such as original factory invoices, foreign exchange payment vouchers, and transaction contracts in advance to avoid the customs re-evaluating the price due to price doubts, which will result in additional tax differences. Under the integrated customs clearance model, the valuation results of any port across the country are universal. Pre-audit of documents in advance can reduce the probability of supplementary tax payment due to valuation and avoid cargo detention and port congestion.
JohnYears of service：6Customer Rating：5.0
Export Tax Rebate AdvisorStart a Chat
In addition to customs duty, value-added tax and consumption tax in the import process, some special goods also need to pay special taxes and fees such as import consumption tax, anti-dumping duty, and safeguard measure duty. It is necessary to confirm the tax types in advance according to the HS code of the goods.
The VAT deferral scheme can postpone the payment of import value-added tax to the sales declaration stage, which can be directly deducted by the output tax amount without additional advance funds, suitable for importers with long goods turnover cycles and high single import value. For goods imported from the EU, Southeast Asia and other regions, those that meet the rules of origin can enjoy agreed tax rates. Pre-audit of the certificate of origin in advance can save customs duty costs.
DanielYears of service：8Customer Rating：5.0
Legal AdvisorStart a Chat
The foreign exchange payment link corresponding to tax payment needs to comply with foreign exchange supervision requirements. The foreign exchange payment vouchers for tax payment on behalf need to be retained for future reference, and the corresponding capital flow needs to be consistent with the goods flow and document flow, so as to avoid being inspected by the foreign exchange supervision department due to non-compliant capital flow.
Paying taxes and fees via cross-border RMB payment can reduce the cost increase caused by exchange rate fluctuations, eliminates the need for foreign exchange purchase, and has a faster arrival speed, which is suitable for large tax payments. Make a reserve plan for tax funds in advance to avoid customs clearance delays caused by untimely tax arrival and resulting in port detention fees.
CharlotteYears of service：4Customer Rating：5.0
Currency Exchange AdvisorStart a Chat
In import agency cooperation, the division of tax payment liabilities needs to be clearly written into the contract terms. The calculation standard of taxes and fees, the payment on behalf process, and the upper limit of price increase should be clearly marked to avoid vague expressions leaving room for unscrupulous agencies to operate.
If an all-inclusive price is agreed in the contract, it is necessary to clarify the items included in the all-inclusive price, whether it covers all items such as main import taxes and fees, agency service fees, and port sundry fees. If additional taxes and fees are incurred subsequently, the liability of the breaching party and the compensation standard should be clarified. In case of disputes, rights can be protected according to the contract terms to avoid unnecessary losses.
EllaYears of service：10Customer Rating：5.0
Senior Financial AdvisorStart a Chat
You can choose a suitable tax payment scheme in combination with the sales cycle of the goods and capital turnover. For high-frequency small-value imports, you can choose normal customs clearance and tax payment, which has a simpler process and lower operating costs.
For large-value low-frequency imports, choosing the VAT deferral scheme can reduce the cost of capital occupation and optimize the cash flow of the entire supply chain. Combined with the choice of trade terms, if CIF terms are adopted, the seller bears the freight and insurance, and the buyer only needs to bear the import taxes and fees, so the tax cost can be included in the procurement budget in advance, which is more convenient for cost control.
WilliamYears of service：10Customer Rating：5.0
International Logistics AdvisorStart a Chat
If the goods are found to be incorrectly classified during inspection, the taxes and fees will be recalculated, resulting in tax differences. It is necessary to supplement the technical data of the goods in time, cooperate with the customs to reclassify the goods, and complete the tax payment after confirming the classification result.
If you have any objection to the tax calculation result, you can apply for administrative reconsideration. You need to pay the tax first or provide a guarantee before starting the reconsideration process to avoid cargo detention at the port. The division of liability for container unpacking and storage fees incurred during inspection should also be clarified in advance to avoid subsequent cost disputes.
AlexanderYears of service：10Customer Rating：5.0
Senior Trade AdvisorStart a Chat
Untimely tax payment will lead to customs refusal to release the goods, resulting in container detention fees and port detention fees. If this fee is caused by delayed tax payment, it shall be borne by the principal. Import agencies usually notify the tax amount 3 working days in advance, so it is necessary to prepare the tax in advance to ensure timely arrival.
If you adopt expedited customs clearance, you need to confirm the tax payment channel in advance to ensure that the tax can be credited on the same day without affecting the customs clearance time limit. For goods with high time limit requirements, you can also make an appointment for pre-calculation of taxes and fees in advance to shorten the waiting time of the customs clearance process.