---
title: "What core legal and commercial elements shall be considered to determine the ownership of imported fruit agency rights?"
description: "When many small and medium-sized fruit wholesalers enter cross-border import business，they confuse the boundary between imported fruit agency rights and goods title，thus falling into risks such as contract disputes，customs detention and port demurrage，and even facing economic losses of hundreds of thousands of yuan. The ownership shall be clarified based on core elements such as authorization agreements，document ownership and customs filings. Realize compliant operation and avoid industry misund..."
url: "https://www.sh-zhongshen.com/en/qa/determination-of-imported-fruit-agency-right-ownership-core-elements.html"
language: "en"
type: "Q&A"
category: "Import Agency Q&A"
datePublished: "2026-10-19"
dateModified: "2026-10-19"
brand: "Zhongshen Trading China"
answerCount: 10
---

# What core legal and commercial elements shall be considered to determine the ownership of imported fruit agency rights?

## Question

 I am the owner of a newly transformed wholesale business of imported premium fruits in Shanghai. Last week, I signed an exclusive procurement agreement with a mangosteen orchard in Chiang Mai, Thailand, and entrusted a foreign trade agency company to handle customs declaration and clearance. But yesterday I suddenly received a notice from the freight forwarder saying that they had previously filed the import agency right for the same batch of mangosteens for another trader. I am completely panicked now - the goods will arrive at Yangshan Port in 10 days. If they are detained at the port due to agency right ownership issues, not only will the hundreds of thousands of yuan worth of mangosteens rot in the port, but I will also have to pay liquidated damages to 3 downstream chain supermarkets. How can I confirm who owns the agency right of this batch of mangosteens? Will the agency right belong to the agency company just because I entrusted them? 

## Answers
                            
### Answer 1 — Best Answer

A common industry misunderstanding is that many traders **confuse "procurement right" with "import agency right"**. They mistakenly believe that signing a procurement agreement with an overseas orchard automatically grants them import agency rights，or that the agency right is transferred to the agent after entrusting a foreign trade agency company，which is the core trigger for ownership disputes.

If the ownership of the agency right is not clarified in time，once the agent subject filed with the customs is inconsistent with the actual owner，the customs will directly determine "unclear ownership" and detain the goods. Fresh fruits will completely deteriorate if detained at the port for more than 7 days. The resulting demurrage fees and destruction costs are usually 15%-20% of the cargo value，and you also need to bear the breach of contract compensation for downstream channels，with total losses possibly reaching more than 3 times the cargo value.

The physical risk isolation measure is: immediately suspend the wrong filing operation of the freight forwarder，sort out ownership certificates such as the procurement agreement，the exclusive import authorization letter issued by the orchard，and the overseas remittance slip，and submit them to the customs to correct the filing subject.

Exclusive loss reduction tip: If the goods have arrived at the port，immediately apply for cold storage in the temporary customs supervision warehouse，and ask the overseas orchard to issue a **notarized exclusive import authorization letter** for your company. Go through the customs "ownership objection appeal channel" through the agency company，and you can complete ownership confirmation and release in as fast as 3 working days.

**status:** accepted
**Author:** Lucas Liu
**Date:** 2026-10-19

### Answer 2

The core basis for customs confirmation of imported fruit agency right ownership is the Filing Receipt of Consignor/Consignee of Import and Export Goods and the corresponding import authorization documents. If a trader entrusts an agency company to declare customs, it is necessary to clarify the difference between "agent customs declaration" and "agency right ownership" when filing: the agency company is only responsible for customs declaration operations, and the ownership of the agency right is subject to the exclusive import authorization letter issued by the overseas supplier, the agency right clauses in the procurement contract, and the "import cargo ownership subject" filed in the customs system.

If the filed subject is inconsistent with the actual ownership, you need to submit the Ownership Correction Application 3 working days before the goods arrive at the port, along with payment vouchers and supplier authorization notarization documents. Otherwise, the customs will launch the price review dispute procedure, extend the customs clearance time to 7-10 working days, and even trigger the intervention of the anti-smuggling department for investigation.

**status:** suggested
**Author:** Linda Gao
**Date:** 2026-10-19

### Answer 3

In the imported fruit logistics chain, the ownership of agency rights and goods title shall be clearly distinguished through bill of lading endorsement and warehouse agreement clauses. If a trader holds the exclusive import agency right, it shall require the overseas freight forwarder to issue a sea bill of lading with your company as the named consignee, and mark "only your company has the right to pick up the goods" in the endorsement column of the bill of lading.

If you entrust a domestic agency company to handle logistics, it shall be clearly stated in the warehouse agreement that "the agency company only has the right of warehouse operation, and the agency right and goods title belong to your company", and require the warehouse to issue a Goods Title Confirmation Letter with official seal. If the logistics party transfers the goods title without authorization, you may apply for property preservation to the maritime court on the basis of the bill of lading and warehouse agreement to avoid losses caused by the goods being picked up by a third party.

**status:** suggested
**Author:** Eric Zhou
**Date:** 2026-10-19

### Answer 4

The ownership of imported fruit agency rights directly affects tax accounting and compliant declaration. If the agency right belongs to the trader, your company shall be the subject to declare import value-added tax and consumption tax, and you can enjoy the value-added tax deduction policy for imported agricultural products. If the agency right belongs to the agency company, the tax declaration subject is the agency company, and you need to obtain the special value-added tax invoice issued by the agency company for deduction.

However, you need to pay attention to the rationality of related transaction pricing to avoid being subject to anti-tax avoidance investigation by the tax authority due to low pricing. In addition, if you use the VAT deferral declaration method, you need to ensure that the agency right ownership subject is consistent with the VAT deferral filing subject, otherwise you will be required to pay the deferred tax and late fee, which is 0.05% per day.

**status:** suggested
**Author:** Daniel Xu
**Date:** 2026-10-19

### Answer 5

The ownership of imported fruit agency rights is directly related to the compliance of foreign exchange receipt and payment. If the agency right belongs to your company, you need to pay the payment to the overseas supplier in the name of your company, mark "mangosteen import payment (exclusive agency)" in the "remarks" column of the SWIFT message, and keep the payment slip and agency agreement for future reference.

If you entrust the agency company to pay foreign exchange, it shall be clearly stated in the Foreign Exchange Payment Entrustment Agreement that "the agency right belongs to your company, and the agency company only pays foreign exchange on behalf of you", and require the bank to issue a Payment Subject Confirmation Letter. If the foreign exchange payment subject is inconsistent with the agency right subject, the State Administration of Foreign Exchange will list your company as a "concerned account", restrict the subsequent cross-border foreign exchange payment quota, and affect future import business.

**status:** suggested
**Author:** Jason Wu
**Date:** 2026-10-19

### Answer 6

The core basis for the ownership of imported fruit agency rights is a written authorization agreement, which shall clarify key clauses such as the geographical scope, validity period, and cargo category of the "exclusive agency", and avoid vague expressions such as "long-term cooperation" and "priority supply". If the procurement agreement signed with the overseas orchard does not specify the ownership of the agency right, a Supplementary Agreement for Exclusive Import Agency Right shall be signed, notarized by the local notary institution, and authenticated by the Chinese Embassy in Thailand.

In case of agency right disputes, you shall sue the court with the notarized authorization agreement, payment voucher, and customs filing information as core evidence, and apply for pre-litigation property preservation to freeze the disposal right of the involved goods, so as to avoid the goods being picked up by a third party.

**status:** suggested
**Author:** Grace Wang
**Date:** 2026-10-19

### Answer 7

In the on-site customs inspection process, the ownership of imported fruit agency rights shall be confirmed through the "operating unit" and "consignee" fields on the Import Goods Declaration Form. If the operating unit is the agency company and the consignee is your company, you shall provide the customs inspection officer with the Agency Customs Declaration Agreement signed between your company and the agency company and the exclusive authorization letter issued by the overseas orchard to prove that your company is the actual owner of the agency right.

If the inspection officer raises an objection to the ownership, you shall immediately submit auxiliary supporting materials such as payment slips and procurement contracts, otherwise you will be required to move the goods to the designated supervision warehouse of the customs, and the inspection will be carried out after the ownership is confirmed. The cold storage demurrage fee is about 150 yuan per cubic meter per day, which increases additional costs.

**status:** suggested
**Author:** Michael Zhang
**Date:** 2026-10-19

### Answer 8

The packaging label of imported fruits shall be consistent with the agency right ownership subject. If the agency right belongs to your company, the name and unified social credit code of your company shall be marked in the "importer information" column of the outer packaging, and the information of the agency company shall be avoided, otherwise the customs will determine it as "inconsistent ownership". At the same time, you need to ensure that the country of origin label and inspection and quarantine label on the packaging match the agency right subject information filed with the customs.

If the label is inconsistent, you need to rectify it before on-site inspection, and the rectification cost is about 2000-3000 yuan per container. If the rectification is not carried out in time, the goods will be destroyed or returned, resulting in heavy losses. In addition, for perishable mangosteens, special packaging with temperature monitoring function shall be used to ensure stable quality during port detention and reduce cargo loss caused by ownership disputes.

**status:** suggested
**Author:** Cindy Chen
**Date:** 2026-10-19

### Answer 9

If your company re-exports imported fruits, the ownership of agency rights will affect the compliance of export tax rebates. If the agency right belongs to your company, your company shall be the subject to apply for export tax rebate, and you need to provide documents such as import declaration form, procurement contract, and export declaration form to ensure the consistency of four flows.

If the agency right belongs to the agency company, you need to obtain the special value-added tax invoice issued by the agency company as the input voucher for export tax rebate, but you need to ensure that the invoice content of the agency company is consistent with the category and quantity of the exported goods, otherwise the tax rebate application will be rejected by the tax authority, and the letter adjustment procedure will be triggered, which affects the tax rebate progress of subsequent export business. In addition, you need to keep the agency right agreement for future reference to avoid being identified as "false export" due to unclear ownership.

**status:** suggested
**Author:** Victor Sun
**Date:** 2026-10-19

### Answer 10

From the perspective of supply chain structure, the ownership of imported fruit agency rights shall match the inventory strategy and channel layout. If your company plans to lay out a national chain channel, you need to obtain the national exclusive agency right from the overseas orchard, and specify "exclusive import nationwide" in the customs filing to avoid regional agency conflicts.

If you adopt the bonded warehouse stocking mode, it shall be clearly stated in the supply chain agreement that "the agency right of the goods in the bonded warehouse belongs to your company, and the warehouse operator only has the operation right". At the same time, establish an inventory linkage system to monitor the inbound and outbound of goods in real time, so as to avoid inventory loss caused by unclear agency right ownership.

In addition, you need to calculate the cost difference of agency right ownership under different subjects through a cost actuarial model. For example, the import cost of owning the agency right is 5%-8% lower than entrusting an agent, but you need to bear more compliance risks.

**status:** suggested
**Author:** Andy Guo
**Date:** 2026-10-19

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