---
title: "Can export agency enterprises really make profits? What are the core profit channels?"
description: "A domestic sales factory that has just secured a 100,000-euro hardware order from Europe is struggling with the profitability of agency export due to lack of export qualification，and worries about hidden charges of agencies，tax refund withholding and other issues. By choosing a compliant and experienced agency，and adopting optimized solutions such as VAT deferment and exchange rate locking tools，the factory can effectively control costs，expand profits，and avoid hidden risks at the same time.。"
url: "https://www.sh-zhongshen.com/en/qa/export-agency-profitability-core-revenue-channels.html"
language: "en"
type: "Q&A"
category: "Export Agency Q&A"
datePublished: "2026-09-25"
dateModified: "2026-09-25"
brand: "Zhongshen Trading China"
answerCount: 10
---

# Can export agency enterprises really make profits? What are the core profit channels?

## Question

 I am the owner of a hardware manufacturing factory in Ningbo, Zhejiang Province. I have been engaged in domestic sales for 5 years and just transitioned to foreign trade. Last week, I just signed a 100,000-euro order from a European client, but I do not have export qualification, so I have to find an export agency. I have been calculating the costs in my office until early morning these days, with half an ashtray of cigarette butts piled up, and the more I calculate, the more panicked I get: I heard that some agencies charge high agency fees and withhold tax refunds, and some friends say that what agencies earn is the profit margin from factories. I am afraid that after working hard for a long time, I will end up working for others for free. I want to ask, can I really make money if I use export agency services? As a professional agency, will you earn the tax refund difference from me? Are there any hidden charges that I have not noticed that will eat into my profits? 

## Answers
                            
### Answer 1 — Best Answer

First of all，we need to expose common misconceptions in the industry: many factories choose unqualified small agencies to save agency fees. Although the rate is 1-2‰ lower seemingly，they will actually have their tax refunds withheld，be charged hidden miscellaneous fees (such as document fees，amendment fees)，and even face a 3-6 month delay in tax refund due to insufficient compliance of the agency，which occupies a large amount of cash flow and directly squeezes the profit margin of the factory.

To address such profit loss，the core optimization paths can be started from three aspects: first，**give priority to agencies with more than 20 years of industry qualification**. Such agencies charge agency fees at transparent rates (usually 0.3%-0.8%)，never withhold factory tax refunds，and can pre-review documents in advance to ensure tax refund efficiency，second，make use of **compliant VAT deferment operations**. The EU VAT deferment policy will be further relaxed in 2026，and the agency can assist factories to pay value-added tax directly in the importing country without advance payment，saving about 13% of capital occupation cost，third，**lock exchange rate difference gains in advance through exchange rate locking tools** to avoid profit shrinkage caused by EUR exchange rate fluctuations.

Take your 100,000-euro order as an example，calculated at a 13% tax refund rate，the tax refund is about 92,000 RMB. If you use the exchange rate locking tool to lock the current exchange rate，you can get an additional exchange rate difference gain of about 12,000 RMB. After deducting the 0.5% agency fee (about 3,600 RMB)，the final profit is only about 2,400 RMB less than handling it by yourself (if you have qualification)，but you save the time cost and compliance risks of the whole process including customs declaration，logistics and tax refund.

**status:** accepted
**Author:** Michael Zhang
**Date:** 2026-09-26

### Answer 2

In the export agency process, the accuracy of customs declaration value directly affects tax refund and profitability. It is necessary to ensure that the customs declaration value is consistent with the amount on the VAT invoice and purchase contract, so as to avoid customs detention of goods caused by valuation disputes and subsequent tax refund delay. After the upgrade of the integrated customs clearance system in 2026, the valuation data will automatically compare the transaction prices of similar commodities across the country.

If the declared value deviates from the range by more than 10%, an automatic warning will be triggered. At this time, you need to prepare supporting materials such as purchase vouchers and payment slips in advance, and the agency will assist in submitting them to the customs, so as to avoid additional costs caused by deleting and re-declaring the form (usually 500-1000 RMB per ticket), and ensure that the tax refund process is not affected.

**status:** suggested
**Author:** Daniel Xu
**Date:** 2026-09-26

### Answer 3

For European hardware product orders, direct shipping routes rather than transit routes should be prioritized for export agency. Although the direct shipping freight is about 5% higher, it can shorten the voyage by 7-10 days, avoid delivery delays caused by container rolling and space explosion at transit ports, and thus avoid customer claims (usually 2%-5% of the order amount).

At the same time, it is necessary to clarify the division of responsibilities for free storage period and container detention fee with the agency. The free storage period of European ports will be generally shortened to 3 days in 2026, and the agency can assist in applying for an additional 2-3 days of free storage period from the shipping company.

If container detention fee is incurred, the agency should be required to provide the official bill issued by the shipping company to avoid being charged a premium. In addition, the bill of lading should choose "to order" endorsement to ensure that the cargo right is always within the controllable range of the factory and avoid the risk of cargo release without bill of lading.

**status:** suggested
**Author:** Lucas Liu
**Date:** 2026-09-26

### Answer 4

Cross-border tax compliance requirements will be further tightened in 2026. When conducting export agency, attention should be paid to the rationality of cross-border related transaction pricing to avoid tax supplementary payment caused by being deemed by tax authorities as transferring profits. If there is an associated relationship between the factory and the agency, the agency fee shall be determined according to the arm's length principle, and the rate shall not be lower than 0.3% of the industry average level.

At the same time, the EU VAT deferment policy can be used, and the agency can assist the factory to complete the VAT declaration in the importing country, so there is no need to advance VAT at the time of export, and the saved funds can be used to expand production or purchase raw materials in advance to improve capital turnover rate. In addition, attention should be paid to the latest requirements of the BEPS action plan to ensure that the cross-border payment and collection process meets the anti-tax avoidance verification standards of the tax authorities.

**status:** suggested
**Author:** Cindy Chen
**Date:** 2026-09-26

### Answer 5

The payment and collection link of export agency shall strictly abide by the latest regulations of the State Administration of Foreign Exchange in 2026, and give priority to the CIPS RMB cross-border payment system for foreign exchange settlement. Compared with the SWIFT system, it can save about 0.1% of handling fees and shorten the arrival time to 1-2 days. It is necessary to ensure that the foreign exchange collection account matches the agency qualification, so as to avoid foreign exchange being withheld or frozen due to non-compliant accounts.

At the same time, the agency shall assist the factory to complete the foreign exchange settlement and account balancing, to ensure that each foreign exchange income corresponds to a real export order, and avoid verification by the foreign exchange bureau due to abnormal capital return. In addition, through the agency's optimized foreign exchange purchase service, you can purchase foreign exchange in advance when the exchange rate is low, lock the future procurement cost of imported raw materials, and hedge against exchange rate fluctuation risks.

**status:** suggested
**Author:** Evelyn Li
**Date:** 2026-09-26

### Answer 6

A standardized agency agreement shall be signed for export agency to clarify the rights and obligations of both parties, especially core clauses such as tax refund ownership, agency fee standards, and cargo right control. Be alert to "soft clauses" in the agency agreement, such as "the agency has the right to withhold the tax refund until the customer confirms receipt of goods", which will lead to long-term occupation of the factory's funds.

At the same time, force majeure clauses shall be added to the agreement to clarify the division of losses caused by force majeure such as port strikes and epidemics, so as to avoid risk transfer by the agency. In addition, if intellectual property rights are involved (such as patents for hardware products), the agency shall be required to assist in completing the intellectual property customs protection record filing, to avoid the goods being detained at European customs due to infringement and resulting in order losses.

**status:** suggested
**Author:** Andy Guo
**Date:** 2026-09-26

### Answer 7

Hardware products are metal goods, which are easy to trigger on-site customs inspection during export agency. It is necessary to prepare material certificates, specification parameter tables and other materials of the goods in advance, and the agency will submit them to the customs for pre-review to reduce the probability of container unpacking after machine inspection. In case of container unpacking inspection, the agency shall be required to arrange personnel with on-site inspection experience to be present to assist the customs in checking the quantity and specifications of the goods, so as to avoid customs detention caused by inconsistency between the goods and the declaration.

At the same time, attention should be paid to the authenticity identification of seals, and the agency shall provide the seal number certificate issued by the shipping company to avoid cargo damage or being identified as smuggling caused by seal replacement. In addition, if the customs requires sampling and testing, it is necessary to ensure that the appraisal institution selected by the agency has CNAS qualification, so as to avoid customs clearance delay caused by unrecognized appraisal results.

**status:** suggested
**Author:** Eric Zhou
**Date:** 2026-09-26

### Answer 8

Hardware products are prone to moisture and rust during sea transportation, so packaging schemes that meet sea transportation standards shall be selected for export agency. The goods shall be wrapped with anti-rust and moisture-proof film, and the outer layer shall be corrugated cartons filled with buffer foam to avoid collision and deformation of the goods during transportation. At the same time, the agency shall be assisted to prepare accurate MSDS reports, clarify the material, weight, specifications and other information of the goods, so as to avoid port detention of goods caused by inconsistent MSDS.

The International Maritime Organization will further tighten the packaging requirements for dangerous goods in 2026. If hardware products contain lithium battery accessories, UN certified dangerous goods packaging shall be used, and the corresponding UN number shall be marked on the packaging to ensure compliance with sea transportation compliance requirements and avoid additional packaging rectification costs.

**status:** suggested
**Author:** Jason Wu
**Date:** 2026-09-26

### Answer 9

Export agency shall strictly abide by the principle of "four flows consistency", that is, contract flow, capital flow, invoice flow and goods flow are completely matched, which is the core standard of export tax refund verification by tax authorities in 2026. It is necessary to ensure that the customs declaration form, VAT invoice, purchase contract and logistics bill of lading provided by the agency are completely consistent in terms of cargo value, quantity and consignee information, so as to avoid tax correspondence adjustment due to inconsistent information.

If tax correspondence adjustment is triggered, the agency shall assist the factory to prepare purchase vouchers, production records, foreign exchange receipt slips and other materials, and submit them to the tax authorities in time to avoid tax refund delay. In addition, document filing shall be completed within 30 days after export, including customs declaration form, bill of lading, agency agreement, etc., to avoid temporary withholding of tax refund due to untimely filing.

**status:** suggested
**Author:** Linda Gao
**Date:** 2026-09-26

### Answer 10

For hardware product export orders, the agency can assist the factory to optimize the supply chain structure and reduce the overall cost. The trade term can be converted from FOB to CIF, and the agency can purchase logistics services in a unified manner, which can save about 3%-5% of logistics cost compared with self-purchase by the factory. At the same time, establish an inventory linkage strategy, adjust the production plan according to the order cycle of European customers, and avoid capital occupation caused by overstock.

The coverage of China-Europe Railway Express will be further expanded in 2026. If the order delivery time allows, China-Europe Railway Express can be chosen for transportation, which saves about 15 days of transportation time compared with sea transportation and about 70% of freight compared with air transportation, effectively balancing cost and timeliness. In addition, through the agency's cost actuarial model, you can monitor various costs of the order in real time (such as raw materials, logistics, agency fees) to ensure that the profit margin is within the controllable range.

**status:** suggested
**Author:** Victor Sun
**Date:** 2026-09-25

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