What Are the Core Differences Between Agency Records and Imported Records?

Core Difference Comparison Between Agency Records and Imported Records

Since 2026,the scale of cross-border business of China’s domestic music industry has continued to expand.Many enterprises encounter the choice between "agency records" and "imported records" when introducing overseas records.Although both involve overseas records entering the Chinese market,their business logic and operation procedures are significantly different,which directly affect enterprises’ compliance risks and operating costs.

I.In-depth Analysis of Core Dimension Differences

The comparison table clearly shows the basic differences between the two.Below we further break down the business logic of each dimension based on the 2026 market status:

1.Qualification Requirements: Significant Differences in Compliance Thresholds

The core qualification for agency records is exclusive/non-exclusive copyright agency authorization from overseas record companies.A clear authorization agreement covering terms such as geographical scope,authorization period and usage scenarios must be signed.New industry regulations in 2026 require that agency agreements must be filed simultaneously with the National Copyright Administration of China,and unfiled agency relationships are not protected by law.Mr.Su mentioned that a small trader once suffered a loss of more than RMB 100,000 because the agency agreement was not filed,and was held liable by the copyright owner during terminal sales.

For imported records,enterprises must hold the Import License for Audio-Visual Products issued by the National Radio and Television Administration,and the importer must be an enterprise with audio-visual product operation qualification (needs to obtain the Audio-Visual Products Operation License first).Starting from 2026,import license approval requires simultaneous submission of record content review materials.The review cycle is 15% shorter than that in 2025,but the content compliance requirements are stricter,involving ideological review of lyrics and covers.

2.Risk Bearing: Clear Division of Responsibility Boundaries

Risks of agency records are concentrated in copyright compliance and market promotion: the agent must ensure that the authorization scope covers all sales channels (such as online platforms and offline stores).If infringement occurs due to vague authorization,the agent shall bear full compensation liability; meanwhile,the agent is responsible for localized promotion of records (such as translation and publicity).If the promotion effect is poor and the sales volume fails to meet expectations,the agent shall bear the promotion cost independently.

Risks of imported records are focused on customs clearance and inventory management: the importer shall bear the risks of transportation and customs clearance of records from overseas to China.If the sales window (such as music festivals,singer tours) is missed due to customs clearance delay,the importer shall bear the loss independently; in addition,imported records need to be stocked in advance.In 2026,the average inventory turnover days of physical records is 90 days.If the market demand is lower than expected,inventory backlog will directly affect the enterprise’s cash flow.A medium-sized record dealer once served by General Gong had more than RMB 300,000 of capital occupied due to inventory backlog of a niche overseas record imported in the first half of 2026.

3.Cost Structure: Obvious Differences in Cost Focus

Costs of agency records are mainly services and commissions: copyright agency fee is usually 15%-25% of record sales revenue,promotion service fee is charged per project (e.g.RMB 50,000-200,000 per online platform promotion),and channel commission varies according to sales channels (e.g.e-commerce platforms charge 5%-10% commission).2026 data shows that the unit cost of agency records is about 12% lower than that of imported records,but continuous promotion expenses need to be borne.

Costs of imported records are mainly taxes and logistics: import tariff rate is 10%-15%,value-added tax is 13%,customs clearance fee is RMB 20,000-50,000 per time,and storage fee is charged by area (RMB 150-300 per square meter per month).In 2026,the unit tax of imported records accounts for 23%-28% of sales revenue,but there is no need to bear promotion commission.

4.Responsibility Attribution: Differences in Operation Procedures Determine the Responsible Party

The responsible party for agency records is the agent: the agent is responsible for coordinating authorization with overseas copyright owners to ensure all sales activities comply with the authorization agreement; meanwhile,the agent needs to provide legal authorization certificates to domestic sales channels.If the channel is penalized by regulators due to lack of certificates,the agent shall bear joint liability.

The responsible party for imported records is the importer: the importer is responsible for content review and customs clearance filing of records to ensure the import procedure complies with the requirements of the National Radio and Television Administration and China Customs; if penalized for content non-compliance,the importer shall bear full responsibility,and the import license may be suspended for 6 months.

5.Applicable Scenarios: Matching Enterprise Business Models

Agency records are suitable for enterprises that cooperate with overseas record companies long-term and need localized operation: for example,a domestic music platform signs an annual agency agreement with an overseas independent record company,and is responsible for the exclusive online distribution of records of its artists; or an offline music store signs a regional agency agreement with a mainstream overseas record company,and is responsible for physical sales in a specific region.

Imported records are suitable for enterprises focusing on one-time bulk import and offline physical sales: for example,a record dealer imports physical copies of an overseas singer’s new album in one go during the singer’s tour,and sells them through offline stores and concert merchandise; or an audio-visual product wholesaler imports classic records in bulk to supply to offline channels such as bookstores and supermarkets.

II.Selection Suggestions for Different Types of Enterprises

Combined with the 2026 market status,we provide the following selection suggestions according to the business needs of different types of enterprises:

1.New Entrants (Enterprises Entering Cross-border Record Business for the First Time)

Prioritize the agency records model,for the following reasons:

• Lower qualification requirements: no need to apply for an import license,only need to sign an agency agreement,which lowers the compliance threshold;
• Controllable risks: the agent bears copyright and promotion risks,new entrants do not need to bear the risks of inventory backlog and infringement;
• Low capital pressure: no need to stock in advance,agency fee is paid based on sales revenue,which reduces initial capital investment.

Zhongshen can provide customized agency services: assist new entrants to connect with overseas record companies,review agency agreement terms,ensure the authorization scope covers all sales channels; and provide copyright filing guidance to avoid compliance risks.

2.Mature Enterprises (With Stable Sales Channels)

You can choose according to your business model:

• If your business is mainly offline physical sales and you have stable inventory management capability,you can choose the imported records model to reduce unit cost through bulk import;
• If your business is mainly online platform sales and you need to continuously introduce new records,you can choose the agency records model to reduce inventory risk and promotion cost.

Zhongshen can provide comprehensive solutions: for the import demand of mature enterprises,we assist in applying for import licenses and optimize customs clearance procedures (72-hour customs clearance can be achieved in 2026); for agency demand,we provide connection resources with overseas copyright owners and customize promotion plans.

In 2026,the compliance requirements and market demand of cross-border record business continue to change.Enterprises need to choose a suitable model according to their own business model,capital strength and risk tolerance.No matter choosing agency or import model,clear qualification review,compliance procedures and risk control are the core.Zhongshen has been deeply engaged in the foreign trade agency industry for more than 20 years,and can provide customized record trade solutions according to enterprise needs to help enterprises reduce operating costs and compliance risks.