--- title: "What taxes are involved in import agency services? Who bears the tax payment obligation?" description: "Many small and medium-sized enterprises often confuse tax subjects，step into compliance pitfalls by mistake，and worry about extra tax burdens or cargo detention and port detention caused by tax payment issues when entrusting import agents. Clarifying the division of tax payment obligations under the import agency model and mastering optimization paths such as VAT deferral can achieve compliant cost reduction，avoid customs clearance risks，and ensure smooth customs clearance and delivery of goods." url: "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html" language: "en" type: "Q&A" category: "Import Agency Q&A" datePublished: "2026-09-30" dateModified: "2026-09-30" brand: "Zhongshen Trading China" answerCount: 10 --- # What taxes are involved in import agency services? Who bears the tax payment obligation? ## Question I am the head of a hardware processing enterprise in Shanghai that has just started cross-border procurement. Last month, I entrusted an import agency to purchase a batch of German precision machine tool accessories. Now I have received the tax list sent by the agent. Apart from customs duty and import VAT, there is also a VAT on agency service fee? I thought the agency would pay all taxes on my behalf before, but now I can't figure out which ones I must bear, and wonder if the agency will pass on its own taxes to me? Besides, I have heard about the VAT deferral policy. Can I apply for it under this model? If I don't figure out the tax issues clearly, will it lead to cargo detention or incur late fees? I can't sleep well recently because of this, fearing that I will step into pitfalls, spend extra money and delay production. ## Answers ### Answer 1 — Best Answer First of all，it should be clear that taxes under the import agency model are divided into two categories: First，customs duty and import VAT in the import link of goods，the tax payment obligor is the principal (i.e. your company)，and the agent is only responsible for paying on behalf，second，the agency service fee charged by the agency is subject to VAT，which shall be borne by the agent itself and shall not be passed on to the principal. This is the red line of industry compliance. Regarding the VAT deferral policy you mentioned，eligible general taxpayer enterprises in Shanghai Customs District can apply for deferred payment of import VAT in 2026. They do not need to pay the full amount at the time of customs clearance，but deduct it during the declaration period of the next month，which can effectively ease the capital pressure. For application，you need to provide the general taxpayer qualification certificate to the agency in advance to ensure that the remark column of the customs declaration form is marked with **"VAT Deferral"**. A common misunderstanding is to confuse the tax on agency service fee with the tax on imported goods. If the agent requires you to bear the VAT on its service fee，you can refuse directly and ask it to provide a compliant service fee invoice. In addition，failure to confirm the tax subject in time may lead to port detention and cargo detention. It is recommended to clarify the **tax division clauses** in the agency contract and keep all payment vouchers as compliance basis. **status:** accepted **Author:** Cindy Chen **Date:** 2026-10-01 ### Answer 2 During import agency customs clearance, if the principal does not clarify the tax payment obligation, it is prone to wrong marking of the "double title" on the customs declaration form, which leads to the failure of matching and deduction in the tax system, and further triggers tax audit inquiries. The correct operation is: if the principal bears the tax, fill in the agency in the "operating unit" column of the customs declaration form, fill in the principal in the "consignee unit" column, and note "entrusted by XX company to import" in the remark column at the same time; if the agent recovers the tax from the principal after paying on behalf, it is necessary to ensure that the title of the tax payment receipt is consistent with the customs declaration form to avoid subsequent deduction failure. In addition, if the customs questions the declared value of the goods in the price review process, there may be a risk of supplementary tax payment. The agent shall assist the principal to prepare supporting materials such as procurement contracts and foreign exchange payment vouchers in advance to deal with price review disputes. **status:** suggested **Author:** Linda Gao **Date:** 2026-10-01 ### Answer 3 Under the import agency model, untimely tax payment directly affects the time limit of cargo container pickup. If the tax payment deadline specified by the customs is exceeded, a late fee of 0.05% per day will be incurred, and it may also trigger customs control and inspection, extend the port detention time, and increase extra costs such as container detention fee and storage fee. To avoid such situations, it is recommended to confirm the estimated tax amount with the agency in advance, and transfer the full amount of tax to the compliant account of the agency 3 days before the cargo arrives at the port; if there is a capital turnover problem, you can apply for temporary tax advance payment service (provided by some agencies), but you need to sign an advance payment agreement to clarify the repayment period and handling fee standard. At the same time, pay close attention to the arrival dynamics of the goods to ensure the seamless connection between tax payment and customs clearance process. **status:** suggested **Author:** Michael Zhang **Date:** 2026-10-01 ### Answer 4 According to the 2026 cross-border tax policy, if the principal under the import agency model is a general taxpayer, it can apply for import VAT deferral, and does not need to pay import VAT at the time of customs clearance, but declares and deducts it in the current VAT declaration form, which is equivalent to obtaining an interest-free fund. Application conditions include: having completed general taxpayer registration, imported goods used for production, operation or sales, declaring customs through a formal agency and providing complete documents. In addition, if the entrusted imported goods are included in the national encouraged industry catalog, they can enjoy the customs duty reduction and exemption policy. The agent shall assist the principal to prepare the qualification certificates, project filing documents and other required for tax reduction and exemption approval in advance to ensure that the tax reduction and exemption filing procedures are completed before customs declaration. **status:** suggested **Author:** Victor Sun **Date:** 2026-10-01 ### Answer 5 In the process of import agency, the capital flow of tax payment shall be consistent with the cargo flow and document flow, otherwise it will be regarded as non-compliant foreign exchange receipt and payment, which will affect the foreign exchange classification rating of the enterprise. Specific requirements: The principal shall transfer the tax to the corporate account of the agency through its corporate account, and shall not use private accounts for transfer; after receiving the tax, the agency shall issue an equivalent tax payment on behalf voucher, which shall correspond to the customs declaration form, bill of lading and other documents one by one. If the principal needs to pay for goods to overseas parties, it shall clarify the division between payment for goods and tax in the agency contract, so as to avoid tax being mixed in the payment for goods, which will be identified as illegal foreign exchange receipt and payment when verified by the foreign exchange administration. **status:** suggested **Author:** Grace Wang **Date:** 2026-10-01 ### Answer 6 When entrusting an import agent, it is necessary to clarify the subject bearing the tax, payment method and breach clauses in the agency contract to avoid subsequent disputes. For example, if the agency fails to pay the tax on behalf on time resulting in cargo detention, it shall bear the port detention fee, late fee and the production loss of the principal; if the principal fails to pay the tax on time, it shall pay the overdue penalty to the agency. In addition, if the agency claims that the principal shall bear the VAT on its service fee, it is necessary to check whether there are relevant agreements in the contract. If there is no agreement, this part of tax shall be borne by the agency itself in accordance with the Civil Code and tax regulations, and the principal has the right to refuse to pay. It is recommended to review the tax-related clauses before signing the contract to ensure compliance. **status:** suggested **Author:** Kevin Lin **Date:** 2026-10-01 ### Answer 7 If imported goods are detained by the customs due to tax issues, the on-site inspection link will additionally increase the detention time of the goods. If they are fresh and perishable goods, it may lead to deterioration and scrapping of the goods. In case of such situations, the agency shall be asked to issue a letter of commitment for tax payment on behalf at the first time, submit it to the on-site customs, and apply for inspection first and tax payment later (only applicable to eligible goods in some customs districts); at the same time, the principal shall raise funds as soon as possible to ensure that the tax is paid within the time limit specified by the customs. In addition, if the customs finds that the declared value of the goods is inconsistent with the actual value during inspection and there is a demand for supplementary tax payment, it is necessary to cooperate with the agency to provide real procurement invoices, foreign exchange payment vouchers and other materials to avoid fines caused by concealing the actual price. **status:** suggested **Author:** Eric Zhou **Date:** 2026-10-01 ### Answer 8 If dangerous goods or special goods are imported, untimely tax payment may lead to the detention of goods at the port and increase the risk of packaging damage. For example, dangerous goods need to be stored in designated dangerous goods warehouses. If the container cannot be picked up in time due to tax issues, the warehouse storage cost is much higher than that of ordinary warehouses, and long-term storage may lead to the failure of packaging sealing, causing safety hazards. It is recommended to confirm the tax amount and payment deadline of special goods with the agency in advance, and prepare the tax fund before the goods are shipped; at the same time, require the agency to give priority to the customs clearance process of special goods, ensure the seamless connection between tax payment, container pickup and transportation links, and reduce the risk of packaging damage. **status:** suggested **Author:** Lucas Liu **Date:** 2026-10-01 ### Answer 9 For principals that also carry out export business, the import VAT paid under the import agency model can be used to deduct export tax refund, but the compliance of import documents and export documents shall be ensured. Specific requirements: The title of the import VAT payment receipt shall be consistent with that of the principal, and the consignee unit on the customs declaration form is the principal; if it is a double-title customs declaration form, the name of the principal shall be marked on the payment receipt before applying for deduction. In addition, the principal shall store the relevant vouchers of import tax and export tax refund documents separately to avoid confusion, and can provide supporting materials in time during tax correspondence investigation to ensure the smooth handling of export tax refund. **status:** suggested **Author:** Jason Wu **Date:** 2026-10-01 ### Answer 10 From the perspective of supply chain cost, the tax under the import agency model can be included in the overall procurement cost accounting, and the comprehensive cost can be reduced by optimizing tax planning. For example, choosing the VAT deferral policy can reduce capital occupation and improve capital turnover rate; if the principal has export business, the import VAT can be used to deduct export tax refund to realize tax difference hedging. In addition, you can negotiate with the agency for preferential policies on tax payment on behalf for long-term cooperation, such as enjoying handling fee reduction for bulk import, to further reduce costs. It is recommended to establish a dynamic calculation model for import taxes, and optimize the procurement scheme in real time according to the tax types, tax rates and policy adjustments of different goods, so as to maximize benefits. **status:** suggested **Author:** Evelyn Li **Date:** 2026-09-30 ## Related Categories - [Export Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-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 taxes are involved in import agency services? Who bears the tax payment obligation?", "text": "I am the head of a hardware processing enterprise in Shanghai that has just started cross-border procurement. Last month, I entrusted an import agency to purchase a batch of German precision machine tool accessories. Now I have received the tax list sent by the agent. Apart from customs duty and import VAT, there is also a VAT on agency service fee? I thought the agency would pay all taxes on my behalf before, but now I can't figure out which ones I must bear, and wonder if the agency will pass on its own taxes to me? Besides, I have heard about the VAT deferral policy. Can I apply for it under this model? If I don't figure out the tax issues clearly, will it lead to cargo detention or incur late fees? I can't sleep well recently because of this, fearing that I will step into pitfalls, spend extra money and delay production.", "answerCount": 10, "upvoteCount": 7, "datePublished": "2026-09-30T23:26:16Z", "dateModified": "2026-09-30T23:53:51Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "First of all，it should be clear that taxes under the import agency model are divided into two categories: First，customs duty and import VAT in the import link of goods，the tax payment obligor is the principal (i.e. your company)，and the agent is only responsible for paying on behalf，second，the agency service fee charged by the agency is subject to VAT，which shall be borne by the agent itself and shall not be passed on to the principal. This is the red line of industry compliance. Regarding the VAT deferral policy you mentioned，eligible general taxpayer enterprises in Shanghai Customs District can apply for deferred payment of import VAT in 2026. They do not need to pay the full amount at the time of customs clearance，but deduct it during the declaration period of the next month，which can effectively ease the capital pressure. For application，you need to provide the general taxpayer qualification certificate to the agency in advance to ensure that the remark column of the customs declaration form is marked with "VAT Deferral" . A common misunderstanding is to confuse the tax on agency service fee with the tax on imported goods. If the agent requires you to bear the VAT on its service fee，you can refuse directly and ask it to provide a compliant service fee invoice. In addition，failure to confirm the tax subject in time may lead to port detention and cargo detention. It is recommended to clarify the tax division clauses in the agency contract and keep all payment vouchers as compliance basis.", "upvoteCount": 7, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#acceptedAnswer", "datePublished": "2026-10-01T00:47:12Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "During import agency customs clearance, if the principal does not clarify the tax payment obligation, it is prone to wrong marking of the "double title" on the customs declaration form, which leads to the failure of matching and deduction in the tax system, and further triggers tax audit inquiries. The correct operation is: if the principal bears the tax, fill in the agency in the "operating unit" column of the customs declaration form, fill in the principal in the "consignee unit" column, and note "entrusted by XX company to import" in the remark column at the same time; if the agent recovers the tax from the principal after paying on behalf, it is necessary to ensure that the title of the tax payment receipt is consistent with the customs declaration form to avoid subsequent deduction failure. In addition, if the customs questions the declared value of the goods in the price review process, there may be a risk of supplementary tax payment. The agent shall assist the principal to prepare supporting materials such as procurement contracts and foreign exchange payment vouchers in advance to deal with price review disputes.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-2", "datePublished": "2026-10-01T00:45:40Z", "author": {"@type": "Person","name": "Linda Gao","url": "https://www.sh-zhongshen.com/en/team/linda-gao/"} } , { "@type": "Answer", "text": "Under the import agency model, untimely tax payment directly affects the time limit of cargo container pickup. If the tax payment deadline specified by the customs is exceeded, a late fee of 0.05% per day will be incurred, and it may also trigger customs control and inspection, extend the port detention time, and increase extra costs such as container detention fee and storage fee. To avoid such situations, it is recommended to confirm the estimated tax amount with the agency in advance, and transfer the full amount of tax to the compliant account of the agency 3 days before the cargo arrives at the port; if there is a capital turnover problem, you can apply for temporary tax advance payment service (provided by some agencies), but you need to sign an advance payment agreement to clarify the repayment period and handling fee standard. At the same time, pay close attention to the arrival dynamics of the goods to ensure the seamless connection between tax payment and customs clearance process.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-3", "datePublished": "2026-10-01T00:44:43Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } , { "@type": "Answer", "text": "According to the 2026 cross-border tax policy, if the principal under the import agency model is a general taxpayer, it can apply for import VAT deferral, and does not need to pay import VAT at the time of customs clearance, but declares and deducts it in the current VAT declaration form, which is equivalent to obtaining an interest-free fund. Application conditions include: having completed general taxpayer registration, imported goods used for production, operation or sales, declaring customs through a formal agency and providing complete documents. In addition, if the entrusted imported goods are included in the national encouraged industry catalog, they can enjoy the customs duty reduction and exemption policy. The agent shall assist the principal to prepare the qualification certificates, project filing documents and other required for tax reduction and exemption approval in advance to ensure that the tax reduction and exemption filing procedures are completed before customs declaration.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-4", "datePublished": "2026-10-01T00:40:38Z", "author": {"@type": "Person","name": "Victor Sun","url": "https://www.sh-zhongshen.com/en/team/victor-sun/"} } , { "@type": "Answer", "text": "In the process of import agency, the capital flow of tax payment shall be consistent with the cargo flow and document flow, otherwise it will be regarded as non-compliant foreign exchange receipt and payment, which will affect the foreign exchange classification rating of the enterprise. Specific requirements: The principal shall transfer the tax to the corporate account of the agency through its corporate account, and shall not use private accounts for transfer; after receiving the tax, the agency shall issue an equivalent tax payment on behalf voucher, which shall correspond to the customs declaration form, bill of lading and other documents one by one. If the principal needs to pay for goods to overseas parties, it shall clarify the division between payment for goods and tax in the agency contract, so as to avoid tax being mixed in the payment for goods, which will be identified as illegal foreign exchange receipt and payment when verified by the foreign exchange administration.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-5", "datePublished": "2026-10-01T00:28:04Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "When entrusting an import agent, it is necessary to clarify the subject bearing the tax, payment method and breach clauses in the agency contract to avoid subsequent disputes. For example, if the agency fails to pay the tax on behalf on time resulting in cargo detention, it shall bear the port detention fee, late fee and the production loss of the principal; if the principal fails to pay the tax on time, it shall pay the overdue penalty to the agency. In addition, if the agency claims that the principal shall bear the VAT on its service fee, it is necessary to check whether there are relevant agreements in the contract. If there is no agreement, this part of tax shall be borne by the agency itself in accordance with the Civil Code and tax regulations, and the principal has the right to refuse to pay. It is recommended to review the tax-related clauses before signing the contract to ensure compliance.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-6", "datePublished": "2026-10-01T00:23:35Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } , { "@type": "Answer", "text": "If imported goods are detained by the customs due to tax issues, the on-site inspection link will additionally increase the detention time of the goods. If they are fresh and perishable goods, it may lead to deterioration and scrapping of the goods. In case of such situations, the agency shall be asked to issue a letter of commitment for tax payment on behalf at the first time, submit it to the on-site customs, and apply for inspection first and tax payment later (only applicable to eligible goods in some customs districts); at the same time, the principal shall raise funds as soon as possible to ensure that the tax is paid within the time limit specified by the customs. In addition, if the customs finds that the declared value of the goods is inconsistent with the actual value during inspection and there is a demand for supplementary tax payment, it is necessary to cooperate with the agency to provide real procurement invoices, foreign exchange payment vouchers and other materials to avoid fines caused by concealing the actual price.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-7", "datePublished": "2026-10-01T00:08:39Z", "author": {"@type": "Person","name": "Eric Zhou","url": "https://www.sh-zhongshen.com/en/team/eric-zhou/"} } , { "@type": "Answer", "text": "If dangerous goods or special goods are imported, untimely tax payment may lead to the detention of goods at the port and increase the risk of packaging damage. For example, dangerous goods need to be stored in designated dangerous goods warehouses. If the container cannot be picked up in time due to tax issues, the warehouse storage cost is much higher than that of ordinary warehouses, and long-term storage may lead to the failure of packaging sealing, causing safety hazards. It is recommended to confirm the tax amount and payment deadline of special goods with the agency in advance, and prepare the tax fund before the goods are shipped; at the same time, require the agency to give priority to the customs clearance process of special goods, ensure the seamless connection between tax payment, container pickup and transportation links, and reduce the risk of packaging damage.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-8", "datePublished": "2026-10-01T00:04:38Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } , { "@type": "Answer", "text": "For principals that also carry out export business, the import VAT paid under the import agency model can be used to deduct export tax refund, but the compliance of import documents and export documents shall be ensured. Specific requirements: The title of the import VAT payment receipt shall be consistent with that of the principal, and the consignee unit on the customs declaration form is the principal; if it is a double-title customs declaration form, the name of the principal shall be marked on the payment receipt before applying for deduction. In addition, the principal shall store the relevant vouchers of import tax and export tax refund documents separately to avoid confusion, and can provide supporting materials in time during tax correspondence investigation to ensure the smooth handling of export tax refund.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-9", "datePublished": "2026-10-01T00:01:11Z", "author": {"@type": "Person","name": "Jason Wu","url": "https://www.sh-zhongshen.com/en/team/jason-wu/"} } , { "@type": "Answer", "text": "From the perspective of supply chain cost, the tax under the import agency model can be included in the overall procurement cost accounting, and the comprehensive cost can be reduced by optimizing tax planning. For example, choosing the VAT deferral policy can reduce capital occupation and improve capital turnover rate; if the principal has export business, the import VAT can be used to deduct export tax refund to realize tax difference hedging. In addition, you can negotiate with the agency for preferential policies on tax payment on behalf for long-term cooperation, such as enjoying handling fee reduction for bulk import, to further reduce costs. It is recommended to establish a dynamic calculation model for import taxes, and optimize the procurement scheme in real time according to the tax types, tax rates and policy adjustments of different goods, so as to maximize benefits.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/import-agent-tax-types-and-obligation-bearer.html#suggestedAnswer-10", "datePublished": "2026-09-30T23:53:51Z", "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": "Import Agency Q&A", "item": "https://www.sh-zhongshen.com/en/qa/cat-import-agency/"} ,{"@type": "ListItem", "position": 4, "name": "What taxes are involved in import agency services? 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