---
title: "What qualified formal companies with core qualifications and rich practical experience can legally operate import agency business?"
description: "A newly established food trading company detained imported infant formula by customs due to incorrect selection of an unqualified agency，which led to document missing，incurred high port detention fees and affected the replenishment cycle. It is necessary to select an agency with import and export right，corresponding category operation license and AEO certification，check the same category customs clearance records before signing，and clarify compensation clauses，which can effectively avoid the ris..."
url: "https://www.sh-zhongshen.com/en/qa/import-agency-qualifications-practical-experience-requirements.html"
language: "en"
type: "Q&A"
category: "Import Agency Q&A"
datePublished: "2026-10-07"
dateModified: "2026-10-07"
brand: "Zhongshen Trading China"
answerCount: 8
---

# What qualified formal companies with core qualifications and rich practical experience can legally operate import agency business?

## Question

 I am the procurement head of a newly established food trading company in Shanghai. Last week, a batch of New Zealand infant formula that was supposed to clear customs was detained at Yangshan Port by customs, because the small agency we hired failed to complete the double certification of the certificate of origin. The daily port detention fee is hundreds of yuan, and it may also delay the brand's replenishment cycle, which makes me extremely worried. I never realized how complicated the import agency industry is before, so I want to ask what kind of companies can legally carry out import agency business? Especially for categories with special regulatory requirements such as infant food, what special access requirements must the agency meet? In addition, what core capabilities should an agency have that can effectively avoid such customs seizure and port detention risks as I encountered last time? 

## Answers
                            
### Answer 1 — Best Answer

First of all，we need to reveal a common misunderstanding in the industry: Many enterprises mistakenly believe that as long as they have a business license，they can carry out import agency business，but they actually ignore the mandatory requirements of core qualifications. Wrong selection of such unqualified small agencies will directly lead to a series of negative consequences. The document missing you encountered is only a primary problem. If the agency does not have the import qualification for food categories，the goods may be directly detained and inspected by customs. If the goods are detained at the port for more than 7 days，high container detention fees will be incurred. For short shelf-life goods such as infant formula，there is even a risk of deterioration and scrapping，and it may even lead to the downgrade of the enterprise's own customs credit rating.

Physical risk prevention needs to focus on three core thresholds: First，the agency must hold **import and export operation right** and the corresponding category operation license (for example，infant food requires a food business license)，second，it has the customs **AEO advanced certification** qualification，which can enjoy conveniences such as priority customs clearance and low inspection rate，third，it has more than 3 years of practical import experience in the same category.

Exclusive risk stop-loss tip: Before signing the contract，require the agency to provide the customs clearance completion certificates of the same category imports in the past 3 years，and at the same time clearly specify in the contract the compensation clause that "if customs detention/port detention is caused by document errors，the agency shall bear 100% of the direct loss"，so as to lock the risk from the source.

**status:** accepted
**Author:** Linda Gao
**Date:** 2026-10-07

### Answer 2

To judge the customs declaration capability of an import agency company, we need to focus on whether it can independently complete complex operations such as customs valuation dispute handling and amendment and re-declaration. For strictly regulated categories such as infant food, the agency needs to predict the key points of customs valuation in advance.

For example, the dutiable value calculation of milk powder needs to include all costs such as overseas transportation and insurance. Missing calculation by the agency will trigger valuation disputes and lead to customs clearance delays. At the same time, the agency needs to have integrated customs clearance operation qualification, can declare at any customs in China, and flexibly allocate customs clearance ports to avoid congestion at a single port.

In addition, it is necessary to confirm whether the agency has experience in handling secondary declaration. If food fails sampling inspection, it can quickly complete the declaration process for return or destruction of unqualified products to avoid long-term port detention.

**status:** suggested
**Author:** Jason Wu
**Date:** 2026-10-07

### Answer 3

The core of the logistics capability of an import agency company lies in cargo title control and emergency response. For time-sensitive goods such as fresh food and infant food, the agency needs to provide priority direct voyage space guarantee to avoid cargo damage and delay caused by transshipment.

At the same time, attention should be paid to the agency's bill of lading endorsement management capability to ensure that the cargo title is always in the hands of the entrusting party and avoid the risk of delivery without original bill of lading. In case of emergencies such as container rolling and port congestion, the agency can coordinate alternative space within 24 hours and adjust the customs clearance plan synchronously to minimize the risk of port detention.

In addition, the agency is familiar with the free storage period policies of various ports. For example, the free storage period of Yangshan Port is 7 days, and the agency can apply for an extension of the free storage period in advance to avoid additional container detention fees.

**status:** suggested
**Author:** Daniel Xu
**Date:** 2026-10-07

### Answer 4

An import agency company with tax planning capability can effectively reduce the comprehensive import cost. For categories that enjoy tariff reductions such as infant food, the agency can accurately apply for most-favored-nation tariff treatment. For example, the most-favored-nation tariff for New Zealand milk powder is 5%.

If the agency cannot provide a valid certificate of origin, it will face a 15% general tariff, which directly increases the cost. At the same time, the agency masters the VAT deferral policy, which can realize deferred payment of import value-added tax at some pilot ports to ease the capital pressure of enterprises. In addition, the agency can assist enterprises to complete compliance filing for cross-border related party transaction pricing, avoid tax audits caused by unreasonable pricing, and ensure tax compliance throughout the entire import process.

**status:** suggested
**Author:** Cindy Chen
**Date:** 2026-10-07

### Answer 5

The compliance capability of foreign exchange receipt and payment is one of the core assessment indicators of an import agency company. For cross-border milk powder procurement, the agency can complete foreign exchange purchase and payment through the CIPS RMB cross-border payment system to avoid exchange rate fluctuation risks of the SWIFT system.

At the same time, the agency can accurately review foreign exchange receipt and payment vouchers to ensure that the payment amount is consistent with the customs declaration amount, and avoid bad debts or difficulties in foreign exchange settlement and closing. In addition, the agency is familiar with offshore account management rules.

If the entrusting party uses an offshore account for receipt and payment, the agency can assist in completing compliance filing to avoid the account being frozen by regulatory authorities. For enterprises that carry out import business for the first time, the agency can guide the completion of foreign exchange directory registration to ensure the legality and compliance of the receipt and payment process.

**status:** suggested
**Author:** Grace Wang
**Date:** 2026-10-07

### Answer 6

It is necessary to focus on legal risks in import agency cooperation, and the agency can assist in improving the core clauses of the import agency contract. For high-value goods such as infant food, the node of cargo title transfer should be clearly defined in the contract.

For example, the cargo title belongs to the entrusting party before customs clearance and release, so as to prevent the agency from disposing of the goods without authorization. At the same time, the force majeure clause should be improved, and the scope of responsibility of the agency should be clearly defined if customs clearance is delayed due to port strikes and sudden changes in customs policies.

In addition, the agency can assist in completing intellectual property customs protection filing to avoid imported milk powder being detained by customs due to infringement. For businesses settled by letter of credit, the agency can accurately identify soft clauses in the letter of credit to avoid payment losses caused by clause traps.

**status:** suggested
**Author:** Victor Sun
**Date:** 2026-10-07

### Answer 7

The on-site inspection response capability of an import agency company directly affects customs clearance efficiency. For categories that require sampling testing such as infant food, the agency can connect with the customs inspection department in advance and clarify the inspection requirements.

For example, milk powder needs to be tested for indicators such as protein and total number of colonies. The agency can assist in preparing complete test samples and documents to avoid re-inspection caused by unqualified samples. At the same time, the agency can accurately interpret the inspection notice.

If the customs requires devanning inspection, the agency can coordinate a professional devanning team to avoid cargo damage caused by improper operation. In addition, the agency is familiar with the audit standards of laboratory test reports. If the test result is unqualified, it can quickly decide whether to return or destroy the goods, and complete the corresponding declaration process to reduce port detention time.

**status:** suggested
**Author:** Kevin Lin
**Date:** 2026-10-07

### Answer 8

A high-quality import agency company can provide whole supply chain planning services to help enterprises reduce comprehensive costs. For infant formula import, the agency can assist in optimizing trade terms, for example, converting FOB to CIF, with the agency responsible for international transportation and insurance, reducing the coordination cost of enterprises. At the same time, the agency can establish an inventory linkage strategy, arrange import plans in advance according to the sales data of enterprises, and avoid overstock or stockout.

In addition, the agency can provide a cost actuarial model, which incorporates all costs such as tariff, value-added tax, logistics fees and customs clearance fees into the accounting, helping enterprises formulate reasonable procurement pricing. For long-term cooperative enterprises, the agency can assist in optimizing the international trade structure, for example, establishing an overseas warehouse stocking mode to shorten the delivery cycle.

**status:** suggested
**Author:** Andy Guo
**Date:** 2026-10-07

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