--- title: "What are the core compliance qualification requirements for the principal company in the entire export agency process?" description: "Many small and medium-sized export enterprises，as export agency principals，often have vague understanding of qualification requirements，risk boundaries and cost control，leading to problems such as non-conforming qualifications，credit risk transmission and out-of-control costs，and even trigger customs compliance penalties. Based on 20 years of foreign trade agency experience，Zhongshen provides practical solutions from the full dimensions of qualification audit，risk isolation and cost optimization..." url: "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html" language: "en" type: "Q&A" category: "Export Agency Q&A" datePublished: "2026-10-18" dateModified: "2026-10-18" brand: "Zhongshen Trading China" answerCount: 10 --- # What are the core compliance qualification requirements for the principal company in the entire export agency process? ## Question I am the owner of a small and medium-sized manufacturing enterprise in Shanghai that has just entered the electromechanical product export industry. Last month, when I sought export agency services for the first time, I failed to fully understand the qualification requirements for principals, which led to customs declaration being held up, the goods were detained at the port for 3 days, and I paid more than 20,000 yuan in extra detention charges. It still makes me nervous when I think about it now. This time we have a batch of goods worth 800,000 yuan to be shipped to Germany, and we want to find a professional agency company, but we have been having doubts: as the principal company, what hard qualifications do we need to meet? In case of compliance problems on the agent's side, will we be implicated? Also, is there any way for the principal to reasonably control the cost of the entire agency process? I really don't want to step into pitfalls again, please make it clear for me! ## Answers ### Answer 1 — Best Answer There are two common misunderstandings among many principals: first，they believe that a business license is the only requirement to act as an export agency principal，ignoring core compliance requirements such as import and export right filing and export tax rebate qualification registration，second，they mistakenly assume that the agency company will bear all risks and they do not need to take responsibility. Falling into these misunderstandings will trigger a chain of negative reactions: non-conforming qualifications will directly lead to customs detention of goods and port detention，generating extra costs such as detention charges and storage fees. In severe cases，the enterprise will be listed on the customs dishonest list，affecting its export business in the following 3 years，if compliance problems occur on the agent's side，the principal will receive letter verification from the tax authority，which may even affect the enterprise's credit rating，resulting in ineligibility for bank loans. Two physical risk isolation measures need to be implemented: first，complete the **qualification pre-audit** in advance to ensure that the import and export right and tax rebate qualification are complete and valid，second，sign a **risk isolation agreement** with the agent to clarify the responsibility boundaries of both parties in the links of customs declaration，tax rebate，and payment receipt and payment. Exclusive loss-stopping tip: Relying on 20 years of experience，Zhongshen has developed the "Principal Risk Pre-screening System"，which can complete full-dimensional qualification and credit check 3 days in advance. Once abnormalities are found，the emergency document replacement or port change plan will be launched immediately to control the loss within 0.5% of the cargo value. **status:** accepted **Author:** Daniel Xu **Date:** 2026-10-18 ### Answer 2 In the export agency customs declaration link, the principal shall provide the agency company with core documents sealed with the official seal in advance, including customs declaration power of attorney, commercial invoice, packing list, purchase and sales contract, etc. The cargo name, specification, quantity and unit price on all documents shall be completely consistent with the actual goods. In case of customs valuation disputes, the principal shall cooperate to provide supporting materials such as purchase contracts, payment vouchers and cost accounting details to ensure a closed valuation logic. In addition, the principal shall ensure that its import and export right filing information is consistent with the information of the operating unit on the customs declaration form, so as to avoid document deletion and re-declaration caused by inconsistent information and delayed customs clearance efficiency. **status:** suggested **Author:** Kevin Lin **Date:** 2026-10-18 ### Answer 3 In the export agency logistics link, the principal shall clarify the issuing subject and endorsement requirements of the bill of lading. If telex release bill of lading is selected, the principal shall issue a telex release letter sealed with the official seal to the agency company, and clearly specify the conditions and time node of cargo right transfer in the letter. In case of abnormal situations such as container rolling and space shortage during peak season, the principal shall cooperate with the agency company to adjust the logistics route, such as switching to a transit flight or shipping from a nearby port. At the same time, the principal shall confirm the bearer of container detention fees and storage fees under the new route to avoid extra costs. In addition, the principal shall track the cargo logistics status in real time. Once the cargo is found to be detained at the port for more than 48 hours, the principal shall immediately require the agency company to apply to the customs for an extended free storage period. **status:** suggested **Author:** Jason Wu **Date:** 2026-10-18 ### Answer 4 In export agency business, as the principal, if the cargo is exported to regions supporting VAT deferral such as the European Union, you can apply for VAT deferred payment, which does not require paying import VAT in the importing country, and you can directly carry out tax rebate declaration in China, effectively easing the capital pressure. In addition, the principal shall ensure that the related party transaction pricing with the agency company complies with the arm's length principle, so as to avoid being identified as profit transfer by the tax authority due to low or high pricing, which triggers anti-tax avoidance investigation. If the principal is a small-scale taxpayer, it shall inform the agency company in advance and select an appropriate tax rebate method to avoid being unable to enjoy the export tax rebate policy due to non-conforming qualifications. **status:** suggested **Author:** Linda Gao **Date:** 2026-10-18 ### Answer 5 In the export agency foreign exchange receipt and payment link, the principal shall ensure that the foreign exchange receipt account is a corporate account filed with the State Administration of Foreign Exchange. All foreign exchange receipt funds shall be consistent with the cargo amount and trading counterparty on the customs declaration form, so as to avoid capital return or unjustified differential foreign exchange receipt. If RMB cross-border payment (CIPS) is adopted, the principal shall provide accurate overseas payer information to the agency company in advance to ensure that the payee, payer and transaction amount in the SWIFT message or CIPS message match the customs declaration form information. In addition, the principal shall complete the foreign exchange receipt verification and filing within 15 working days after receiving the foreign exchange, so as to avoid being listed on the watch list of the State Administration of Foreign Exchange due to overdue verification. **status:** suggested **Author:** Eric Zhou **Date:** 2026-10-18 ### Answer 6 In export agency cooperation, the principal shall sign a formal export agency agreement with the agency company. The agreement shall clarify core clauses such as agency scope, fee standard, responsibility boundary and liability for breach of contract, and especially make clear agreements on the handling methods of soft clauses of letters of credit and force majeure events. If cargo right transfer is involved, the principal shall clarify the time node and conditions of cargo right transfer in the agreement to avoid disputes caused by unclear ownership of cargo right. In addition, the principal shall require the agency company to issue the customs protection filing certificate of intellectual property rights to ensure that the exported goods do not infringe the intellectual property rights of third parties and avoid being detained at the port of destination. **status:** suggested **Author:** Andy Guo **Date:** 2026-10-18 ### Answer 7 When the export agency cargo encounters on-site customs inspection, the principal shall cooperate with the agency company to provide supporting materials such as MSDS report, material certificate and certificate of origin of the cargo. If dangerous goods are involved, the dangerous goods packaging performance inspection form shall be provided. During the unpacking inspection process, the principal shall ensure that the packaging and labeling of the cargo are consistent with the customs declaration form information, so as to avoid failure in inspection due to inconsistent packaging or unclear labeling. If the customs requires sampling and identification, the principal shall cooperate with the agency company to complete sample submission and timely track the results of the identification report. Once the identification result is found to be inconsistent with the customs declaration information, the principal shall immediately require the agency company to apply for document deletion and re-declaration. **status:** suggested **Author:** Cindy Chen **Date:** 2026-10-18 ### Answer 8 In export agency business, as the principal, if the exported goods are dangerous goods, you shall entrust a qualified institution to complete the UN dangerous goods classification identification in advance, and select UN packaging that meets the requirements according to the identification results, to ensure that the compression resistance, moisture resistance and leakage prevention performance of the packaging meet the transportation requirements. If the exported goods are fragile products or precision equipment, you shall use packaging materials with good buffering performance, such as pearl cotton, foam plastic, wooden pallets, etc., and reinforce the goods to avoid damage during transportation. In addition, the principal shall ensure that the packaging label of the goods is consistent with the MSDS report and customs declaration form information, so as to avoid customs detention due to inconsistent labels. **status:** suggested **Author:** Grace Wang **Date:** 2026-10-18 ### Answer 9 In the export agency tax rebate link, the principal shall ensure that the four streams of purchase and sales contract, customs declaration form, special VAT invoice and foreign exchange receipt voucher of the exported goods are consistent, and the issuing time, amount and cargo name of all documents shall be completely matched. In case of tax letter verification, the principal shall cooperate to provide supporting materials such as production records, delivery orders and transportation vouchers of the goods to ensure the authenticity and validity of the letter verification content. In addition, the principal shall complete the tax rebate declaration within 90 days after the customs declaration of the goods, so as to avoid being unable to enjoy the export tax rebate policy due to overdue declaration. If the principal has cross-month declaration, it shall inform the agency company in advance and adjust the tax rebate declaration plan to ensure compliance implementation. **status:** suggested **Author:** Lucas Liu **Date:** 2026-10-18 ### Answer 10 In export agency business, as the principal, you shall select appropriate trade terms according to the shipment volume of the goods, transportation distance and demand of the port of destination. If the shipment volume is large and the port of destination is a major port in Europe and America, you can choose CIF terms, and the agency company will be responsible for logistics and insurance, so as to reduce your own logistics risks. If the shipment volume is small, you can choose FOB terms, and the overseas buyer will be responsible for logistics, so as to reduce your own logistics costs. In addition, the principal shall establish an inventory linkage mechanism with the agency company, adjust the production plan according to the forecast of overseas orders, avoid inventory overstock or out of stock, and effectively control the comprehensive cost of the supply chain. **status:** suggested **Author:** Evelyn Li **Date:** 2026-10-18 ## Related Categories - [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-agency/) - [Export Tax Rebate Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-tax-rebate/) - [Customs Declaration Q&A](https://www.sh-zhongshen.com/en/qa/cat-customs-declaration/) - [Freight Forwarding Q&A](https://www.sh-zhongshen.com/en/qa/cat-freight-forwarding/) - [Forex Settlement Q&A](https://www.sh-zhongshen.com/en/qa/cat-forex-settlement/) - [Entrepôt Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/) - [General Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-general-trade/) ## Related Resources - [Trade Services](https://www.sh-zhongshen.com/en/services/) - [Trade Cases](https://www.sh-zhongshen.com/en/cases/) - [Trade Wiki](https://www.sh-zhongshen.com/en/wiki/) - [Trade Class](https://www.sh-zhongshen.com/en/guide/) - [Global Trade Services](https://www.sh-zhongshen.com/en/country/) ## Structured Data ```json [ { "@context": "https://schema.org", "@type": "QAPage", "inLanguage":"en", "isPartOf": { "@id":"https://www.sh-zhongshen.com/en/#website" }, "publisher":{ "@id":"https://www.sh-zhongshen.com/en/#organization" }, "mainEntity": { "@type": "Question", "name": "What are the core compliance qualification requirements for the principal company in the entire export agency process?", "text": "I am the owner of a small and medium-sized manufacturing enterprise in Shanghai that has just entered the electromechanical product export industry. Last month, when I sought export agency services for the first time, I failed to fully understand the qualification requirements for principals, which led to customs declaration being held up, the goods were detained at the port for 3 days, and I paid more than 20,000 yuan in extra detention charges. It still makes me nervous when I think about it now. This time we have a batch of goods worth 800,000 yuan to be shipped to Germany, and we want to find a professional agency company, but we have been having doubts: as the principal company, what hard qualifications do we need to meet? In case of compliance problems on the agent's side, will we be implicated? Also, is there any way for the principal to reasonably control the cost of the entire agency process? I really don't want to step into pitfalls again, please make it clear for me!", "answerCount": 10, "upvoteCount": 4, "datePublished": "2026-10-18T23:00:18Z", "dateModified": "2026-10-18T23:01:15Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "There are two common misunderstandings among many principals: first，they believe that a business license is the only requirement to act as an export agency principal，ignoring core compliance requirements such as import and export right filing and export tax rebate qualification registration，second，they mistakenly assume that the agency company will bear all risks and they do not need to take responsibility. Falling into these misunderstandings will trigger a chain of negative reactions: non-conforming qualifications will directly lead to customs detention of goods and port detention，generating extra costs such as detention charges and storage fees. In severe cases，the enterprise will be listed on the customs dishonest list，affecting its export business in the following 3 years，if compliance problems occur on the agent's side，the principal will receive letter verification from the tax authority，which may even affect the enterprise's credit rating，resulting in ineligibility for bank loans. Two physical risk isolation measures need to be implemented: first，complete the qualification pre-audit in advance to ensure that the import and export right and tax rebate qualification are complete and valid，second，sign a risk isolation agreement with the agent to clarify the responsibility boundaries of both parties in the links of customs declaration，tax rebate，and payment receipt and payment. Exclusive loss-stopping tip: Relying on 20 years of experience，Zhongshen has developed the "Principal Risk Pre-screening System"，which can complete full-dimensional qualification and credit check 3 days in advance. Once abnormalities are found，the emergency document replacement or port change plan will be launched immediately to control the loss within 0.5% of the cargo value.", "upvoteCount": 4, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#acceptedAnswer", "datePublished": "2026-10-18T23:53:23Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "In the export agency customs declaration link, the principal shall provide the agency company with core documents sealed with the official seal in advance, including customs declaration power of attorney, commercial invoice, packing list, purchase and sales contract, etc. The cargo name, specification, quantity and unit price on all documents shall be completely consistent with the actual goods. In case of customs valuation disputes, the principal shall cooperate to provide supporting materials such as purchase contracts, payment vouchers and cost accounting details to ensure a closed valuation logic. In addition, the principal shall ensure that its import and export right filing information is consistent with the information of the operating unit on the customs declaration form, so as to avoid document deletion and re-declaration caused by inconsistent information and delayed customs clearance efficiency.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-2", "datePublished": "2026-10-18T23:43:20Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } , { "@type": "Answer", "text": "In the export agency logistics link, the principal shall clarify the issuing subject and endorsement requirements of the bill of lading. If telex release bill of lading is selected, the principal shall issue a telex release letter sealed with the official seal to the agency company, and clearly specify the conditions and time node of cargo right transfer in the letter. In case of abnormal situations such as container rolling and space shortage during peak season, the principal shall cooperate with the agency company to adjust the logistics route, such as switching to a transit flight or shipping from a nearby port. At the same time, the principal shall confirm the bearer of container detention fees and storage fees under the new route to avoid extra costs. In addition, the principal shall track the cargo logistics status in real time. Once the cargo is found to be detained at the port for more than 48 hours, the principal shall immediately require the agency company to apply to the customs for an extended free storage period.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-3", "datePublished": "2026-10-18T23:43:08Z", "author": {"@type": "Person","name": "Jason Wu","url": "https://www.sh-zhongshen.com/en/team/jason-wu/"} } , { "@type": "Answer", "text": "In export agency business, as the principal, if the cargo is exported to regions supporting VAT deferral such as the European Union, you can apply for VAT deferred payment, which does not require paying import VAT in the importing country, and you can directly carry out tax rebate declaration in China, effectively easing the capital pressure. In addition, the principal shall ensure that the related party transaction pricing with the agency company complies with the arm's length principle, so as to avoid being identified as profit transfer by the tax authority due to low or high pricing, which triggers anti-tax avoidance investigation. If the principal is a small-scale taxpayer, it shall inform the agency company in advance and select an appropriate tax rebate method to avoid being unable to enjoy the export tax rebate policy due to non-conforming qualifications.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-4", "datePublished": "2026-10-18T23:31:12Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "In the export agency foreign exchange receipt and payment link, the principal shall ensure that the foreign exchange receipt account is a corporate account filed with the State Administration of Foreign Exchange. All foreign exchange receipt funds shall be consistent with the cargo amount and trading counterparty on the customs declaration form, so as to avoid capital return or unjustified differential foreign exchange receipt. If RMB cross-border payment (CIPS) is adopted, the principal shall provide accurate overseas payer information to the agency company in advance to ensure that the payee, payer and transaction amount in the SWIFT message or CIPS message match the customs declaration form information. In addition, the principal shall complete the foreign exchange receipt verification and filing within 15 working days after receiving the foreign exchange, so as to avoid being listed on the watch list of the State Administration of Foreign Exchange due to overdue verification.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-5", "datePublished": "2026-10-18T23:27:07Z", "author": {"@type": "Person","name": "Eric Zhou","url": "https://www.sh-zhongshen.com/en/team/eric-zhou/"} } , { "@type": "Answer", "text": "In export agency cooperation, the principal shall sign a formal export agency agreement with the agency company. The agreement shall clarify core clauses such as agency scope, fee standard, responsibility boundary and liability for breach of contract, and especially make clear agreements on the handling methods of soft clauses of letters of credit and force majeure events. If cargo right transfer is involved, the principal shall clarify the time node and conditions of cargo right transfer in the agreement to avoid disputes caused by unclear ownership of cargo right. In addition, the principal shall require the agency company to issue the customs protection filing certificate of intellectual property rights to ensure that the exported goods do not infringe the intellectual property rights of third parties and avoid being detained at the port of destination.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-6", "datePublished": "2026-10-18T23:22:30Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "When the export agency cargo encounters on-site customs inspection, the principal shall cooperate with the agency company to provide supporting materials such as MSDS report, material certificate and certificate of origin of the cargo. If dangerous goods are involved, the dangerous goods packaging performance inspection form shall be provided. During the unpacking inspection process, the principal shall ensure that the packaging and labeling of the cargo are consistent with the customs declaration form information, so as to avoid failure in inspection due to inconsistent packaging or unclear labeling. If the customs requires sampling and identification, the principal shall cooperate with the agency company to complete sample submission and timely track the results of the identification report. Once the identification result is found to be inconsistent with the customs declaration information, the principal shall immediately require the agency company to apply for document deletion and re-declaration.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-7", "datePublished": "2026-10-18T23:17:58Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } , { "@type": "Answer", "text": "In export agency business, as the principal, if the exported goods are dangerous goods, you shall entrust a qualified institution to complete the UN dangerous goods classification identification in advance, and select UN packaging that meets the requirements according to the identification results, to ensure that the compression resistance, moisture resistance and leakage prevention performance of the packaging meet the transportation requirements. If the exported goods are fragile products or precision equipment, you shall use packaging materials with good buffering performance, such as pearl cotton, foam plastic, wooden pallets, etc., and reinforce the goods to avoid damage during transportation. In addition, the principal shall ensure that the packaging label of the goods is consistent with the MSDS report and customs declaration form information, so as to avoid customs detention due to inconsistent labels.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-8", "datePublished": "2026-10-18T23:07:20Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "In the export agency tax rebate link, the principal shall ensure that the four streams of purchase and sales contract, customs declaration form, special VAT invoice and foreign exchange receipt voucher of the exported goods are consistent, and the issuing time, amount and cargo name of all documents shall be completely matched. In case of tax letter verification, the principal shall cooperate to provide supporting materials such as production records, delivery orders and transportation vouchers of the goods to ensure the authenticity and validity of the letter verification content. In addition, the principal shall complete the tax rebate declaration within 90 days after the customs declaration of the goods, so as to avoid being unable to enjoy the export tax rebate policy due to overdue declaration. If the principal has cross-month declaration, it shall inform the agency company in advance and adjust the tax rebate declaration plan to ensure compliance implementation.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-9", "datePublished": "2026-10-18T23:04:49Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } , { "@type": "Answer", "text": "In export agency business, as the principal, you shall select appropriate trade terms according to the shipment volume of the goods, transportation distance and demand of the port of destination. If the shipment volume is large and the port of destination is a major port in Europe and America, you can choose CIF terms, and the agency company will be responsible for logistics and insurance, so as to reduce your own logistics risks. If the shipment volume is small, you can choose FOB terms, and the overseas buyer will be responsible for logistics, so as to reduce your own logistics costs. In addition, the principal shall establish an inventory linkage mechanism with the agency company, adjust the production plan according to the forecast of overseas orders, avoid inventory overstock or out of stock, and effectively control the comprehensive cost of the supply chain.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/export-agent-service-principal-compliance-qualification-requirements.html#suggestedAnswer-10", "datePublished": "2026-10-18T23:01:15Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } ] } }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ {"@type": "ListItem", "position": 1, "name": "Home", "item": "https://www.sh-zhongshen.com/en/"},{"@type": "ListItem", "position": 2, "name": "Q&A", "item": "https://www.sh-zhongshen.com/en/qa/"},{"@type": "ListItem", "position": 3, "name": "Export Agency Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-export-agency/"} ,{"@type": "ListItem", "position": 4, "name": "What are the core compliance qualification requirements for the principal company in the entire export agency process?"} ] } ] ```