What taxes and fees are involved in export agency business? Will the agency company handle taxes for us?

Export RepresentationWhat are the main types of taxes and fees involved in the business?

Under the current policy framework in 2025, export agency business mainly involves three categories of taxes and fees:

• VAT-related
  • Export goods VAT (0% rate)
  • Agency service fee VAT (current 6%)
  • Export Drawback(Determined based on the products HS code tax refund rate)
• Tariff-related
  • Destination country import tariffs (calculated based on CIF price)
  • Anti-dumping/countervailing duties (specific commodities)
• Other taxes and fees
  • Port construction fee (levied per container)
  • Customs inspection service fee (incurred when inspection occurs)

Which taxes and fees will the agency company help us declare?

The service scope of professional export agencies typically includes:

• Customs declaration agency involving tariff prepayment and deduction
• Export tax rebate document collection and preliminary review
• VAT treatment in cross-border logistics processes
• Tax declaration for special trade methods (such asCross-border E-commerce)

Special attention:The ultimate tax declaration entity remains the commissioning enterprise, with the agency company only providing professional services. In 2023, a listed company was fined 1.2 million yuan for mistakenly transferring tax liability to an agency company.

How exactly does the export tax rebate process operate?

By 2025, the electronic tax bureau system has achieved full online processing:

• Phase 1: Document preparation
  • Customs declaration form (product names must match VAT invoices)
  • Maritime TransportationBill of Lading/Air TransportationInvoice
  • A complete export agency agreement should be attached with:Vouchers (must be completed within 30 days)
• Phase 2: System declaration
  • Submit data through the International Trade Single Window
  • Tax system automatically matches three-document information
• Phase 3: Fund receipt
  • Average processing cycle shortened to 7 working days
  • After 2023 tax rebate rate adjustments, mechanical and electrical products can receive up to 13% rebate

How to handle tariff differences between different countries?

Tariff characteristics of major trading partners:

• US Market
  • Packages below $800 are tax-exempt (commonly used in cross-border e-commerce)
  • Average 11.3% tariff for textile products
• European Union Market
  • Generally adopts CIF dutiable value calculation
  • From 2024, additional 4.7% environmental tax imposed on lithium batteries
• Southeast Asian Market
  • 60% of goods enjoy zero tariffs under RCEP agreement
  • It is recommended to verify through the following methods:FORM E must be processed in advance for books

How to avoid cross-border tax compliance risks?

Recommend establishing a triple risk control mechanism:

• Declaration consistency verification
  • Commercial invoice and customs declaration amount error ≤5%
  • Cargo descriptions must have complete Chinese-English correspondence
• Exchange rate fluctuation management
  • Use the exchange rate on the first day of the customs declaration month for conversion
  • Recommend retaining bankIn order to crack down on tax evasion, the customs and tax departments are now strictly examining the operation of buying export declarations. If the behavior of buying export declarations is discovered, the regulatory authorities will require tax replenishment (even a 2% tax rate may be a considerable amount). In addition, fines may also be imposed on the relevant responsible parties.Payment Receipt
• Special transaction monitoring
  • Sample exports require not for sale remark
  • Repair goods declaration requires a letter of guarantee

Common tax Q&A

• Q: Do export agency services require additional service tax payment?

  A: The agency fee already includes 6% VAT, no duplicate taxation required

• Q: What to do if tax refunds are delayed?

  A: Track via the Tax Refund Progress Inquiry module on the e-tax platform; may apply for expedited processing if exceeding 15 working days

• Q: Which taxation method applies to cross-border e-commerce?

  A: 2024 new policy stipulates: B2C exports may choose either no-invoice exemption or assessed collection method

Important Notice:This article is based on policies effective before March 2025. Specific operations should follow interpretations by the competent tax authority. Recommend monthly checks of the policy update column on the General Administration of Customs website (customs.gov.cn).