Why must a formal agency agreement be signed for exports?

According to the latest 2025 Customsimport and exportGoods Declaration Management Regulations in 2025,All entrusted agency export businesses must sign a written agency agreementThis is not only a mandatory requirement for customs supervision but also the legal basis for clarifying the rights and responsibilities of both parties:

• Clearly define the declaration entities: The agreement must specify the operating unit (agent) and the shipping unit (consignor)
• Standardize fund flows: The agreement must stipulate the payment settlement method and foreign exchange verification responsibilities
• Protect tax rebate rights: The agreement should specify the timeframe for issuing VAT invoices and the entity responsible for tax rebates
• Mitigate smuggling risks: The agreement should allocate verification responsibilities for the authenticity of goods

What legal consequences may arise from not signing an agency agreement?

Year 2024foreign tradeA case where a company suffered a 2.7 million yuan tax rebate loss due to not signing an agency agreement serves as a warning. Main risks include:

• Customs administrative penalties: May be identified as false self-operation, real agency, facing goods seizure and fines
• Tax audit risks:
  • Inability to provide legitimate agency documentation leading to input tax reversal
  • Export DrawbackQualifications may be revoked
• Foreign exchange management violations: Inconsistent entities for foreign exchange receipts/payments will trigger SAFE (State Administration of Foreign Exchange) scrutiny

How to choose a compliant foreign trade agency company?

A high-quality agency company should possess the following qualifications:

• Customs AEO certification (recommended to choose Advanced Certified Enterprises)
• State Administration of Foreign Exchange Category A enterprise
• Export experience with corresponding product categories
• Provide complete liability insurance certificates

Special attentionNewly added in 2025:Cross-border E-commerceAgency qualification requirements, must confirm the agent has operational capabilities for supervision codes such as 9610/9710/9810.

How should agency fees be handled compliantly?

According to the 2025 VAT new policy, key points for tax treatment of agency service fees:

• Agency fee invoices should be issued separately and not combined with goods value
• Payment to overseas agents requires withholding and remittance of 6% VAT
• Domestic agency fees can deduct input VAT with special invoices
• Recommended payment ratio should be controlled at 3%-5% of goods value (excluding bulk commodities)

How does the agency agreement differ under special trade modes?

Different trade modes require special clauses:

• Processing trade: Must clarify responsibility for bonded materials management
• Market procurement tradeSpecify the identity of the group consignor and the requirements for customs declaration remarks
• Cross-border E-commerceEstablish a three-way matching mechanism for payment documents, logistics documents, and orders
• Temporary import/exportSpecify the goods return time and the handling method of the deposit

How to effectively protect rights in case of agency disputes?

It is recommended to preset a dispute resolution mechanism in the agreement:

• Specify the jurisdiction of the China International Economic and Trade Arbitration Commission (CIETAC)
• Establish a joint beneficiary mechanism for cargo transportation insurance
• Maintain complete communication records (electronic evidence such as emails, WeChat, etc.)
• Conduct regular compliance audits of documents

Notably, the new system launched by the General Administration of Customs in 2025Agency relationship filing systemRequires all agency agreements to be filed electronically 30 days in advance, which will significantly improve the transparency of agency business.