Is it legal and compliant to conduct import and export agency business? What core qualifications and operational specifications are required?

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  • Aug 16, 2026 at 10:40
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I am the head of a small mechanical processing factory based in Shanghai. I just got my first overseas order from Southeast Asia last month, but our factory does not have import and export operation right, so we have to cooperate with an agency company.

I heard from peers that some import and export agencies are illegal, and a friend of mine chose a small agency for lower cost last year. As a result, his goods were detained at the port, he was fined more than 100,000 RMB by customs, the order was finally canceled and he had to pay penalty to the client. I am very anxious now.

I want to know, is formal import and export agency business legal at all? If I work with a qualified agency, will I accidentally touch legal red lines in operational links such as document preparation and capital receipt and payment? After all, our small factory cannot afford major setbacks, and we are afraid of losing all our capital due to wrong choices.

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Expert Q&A

Andy Guo
Andy GuoYears of service：3Customer Rating：5.0

Supply Chain Management ExpertStart a Chat

Many foreign trade practitioners have a common misunderstanding: they mistakenly believe that any company with a business license can carry out import and export agency business. In fact，many "black agents" without import and export operation right and customs declaration & inspection qualification are mixed in the industry，which is the core source of compliance risks.

If you accidentally choose such a black agent，it will trigger a series of negative consequences: First，non-compliant document preparation directly leads to high container detention fees due to cargo detention at port. If customs inspection finds qualification forgery，the goods will be directly detained，and you will face a fine of 5%-30% of the cargo value，More seriously，your enterprise will be added to the customs dishonesty list，all subsequent cross-border trade business will be subject to enhanced supervision，and you may even be unable to conduct normal customs declaration. Situations like your friend paying penalty and losing core clients are very common.

Practical risk isolation measures should start from three points: First，strictly verify the core qualifications of the agency，require the agency to provide business license (with "import and export agency" included in the business scope)，import and export operation right filing certificate，and customs declaration & inspection qualification certificate，Second，sign a formal agency contract，clearly specify cargo title ownership，responsibility division，and breach compensation clauses，Third，control the whole process of document preparation，ensure that information such as customs declaration forms，invoices and packing lists is completely consistent with actual cargo information.

Exclusive loss mitigation tip: Add a "special loss mitigation clause for qualification defects" to the contract. If any loss is caused by the agency's qualification problems，the agency shall compensate for the full amount，meanwhile，require the agency to synchronize cargo logistics and customs clearance status daily，and contact the customs' direct-affiliated compliance coordination department for intervention immediately once any abnormality occurs.

Reference: Complete Analysis of Xi'an Freight Export Agency Services: One-stop Solution from Customs Declaration to Tax Refund
Kevin Lin
Kevin LinYears of service：4Customer Rating：5.0

Trade Solutions ManagerStart a Chat

From the perspective of customs declaration compliance, the legitimacy of import and export agency is directly related to the closed logical loop of the declaration process. First, the agency needs to declare customs in its own name or the principal's name, but must ensure that the operating unit on the customs declaration matches the entity that actually holds import and export operation right. Illegal operations such as "purchased declaration" are strictly prohibited.

If the agency adopts purchased declaration, the customs system will detect that the operating unit does not match the cargo owner, trigger a price verification objection. The consequence ranges from deleting the declaration and re-declaring to launching an investigation procedure, and even adding the cargo owner to the abnormal list. In addition, the agency needs to assist the cargo owner to complete data entry of the customs declaration through the "single window", ensure that information such as commodity code, declaration elements and certificate of origin completely matches the actual cargo, so as to avoid the risk of cargo detention caused by inconsistent data.

Jason Wu
Jason WuYears of service：10Customer Rating：5.0

International Logistics & Supply Chain ManagerStart a Chat

From the perspective of cargo title control in international logistics, a legal import and export agency must strictly control each node of cargo title transfer. First, the agency must clearly specify cargo title ownership in the entrustment contract, and it is strictly prohibited to transfer the bill of lading or release cargo without the written authorization of the cargo owner.

If the agency releases cargo illegally, the cargo owner will end up losing both cargo and payment. Especially in the scenario of telex release bill of lading, the operation must not be carried out until the agency obtains the written telex release confirmation letter from the consignee.

In addition, the agency must cooperate with formal shipping companies or freight forwarders, to avoid cargo rolling over and detention at port caused by unqualified logistics partners of the agency. Meanwhile, the division of responsibilities for container detention fees and storage fees must be specified in the contract, and any additional costs caused by the agency's operational errors must be fully borne by the agency.

Victor Sun
Victor SunYears of service：5Customer Rating：5.0

Trade Risk Control ManagerStart a Chat

From the perspective of international tax planning, a legal import and export agency must ensure the compliance of the tax chain. First, the agency needs to assist the cargo owner to complete cross-border tax declaration and payment. If VAT deferral is involved, it must be ensured that the agency has the qualification to apply for VAT deferral, and relevant documents are submitted in strict accordance with the 2026 tax requirements of the EU or the corresponding destination country, so as to avoid tax audit caused by false VAT declaration.

In addition, the agency must clearly divide tax responsibilities between the cargo owner and the agency, and it is strictly prohibited for the agency to transfer its own tax risks to the cargo owner. Especially for related party transaction pricing, it must comply with the arm's length principle, so as to avoid triggering BEPS-related tax investigations, and ensure that the cargo owner's tax cost is controllable and compliant.

Eric Zhou
Eric ZhouYears of service：6Customer Rating：5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

From the perspective of cross-border foreign exchange receipt and payment compliance, a legal import and export agency must strictly follow the latest 2026 regulations of the State Administration of Foreign Exchange. First, the agency needs to conduct foreign exchange receipt and payment in its own name or the principal's name, but must ensure that the amount of receipt and payment is consistent with the amount on the customs declaration. Splitting receipt and payment or falsely reporting the purpose of receipt and payment is strictly prohibited, otherwise it will trigger a monitoring alarm from the foreign exchange authority and lead to account freezing.

If RMB cross-border payment (CIPS) is adopted, it must be ensured that the agency has the operation qualification for CIPS payment, and the information in SWIFT messages or CIPS messages completely matches the contract and customs declaration, so as to avoid remittance being returned or frozen caused by inconsistent message information. In addition, the agency needs to assist the cargo owner to complete foreign exchange settlement and account reconciliation, ensure that each capital flow is supported by corresponding documents, and form a complete closed capital chain.

Linda Gao
Linda GaoYears of service：7Customer Rating：5.0

Documentation SupervisorStart a Chat

From the perspective of legal protection for international trade, a legal import and export agency must avoid legal risks through complete contract clauses. First, the agency contract must clearly specify the scope of the agency's authority, and it is strictly prohibited for the agency to carry out business beyond the authorized scope. Especially in links such as signing overseas contracts and handling disputes, written authorization from the cargo owner is mandatory. In addition, a fallback provision for force majeure must be added to the contract.

If cargo delay is caused by force majeure such as pandemic and port strike, responsibility division must be clearly specified, to avoid the agency transferring its own responsibilities to the cargo owner. Meanwhile, the conditions and process of cargo title transfer must be clearly specified, it is strictly prohibited for the agency to dispose of cargo without the authorization of the cargo owner, and the agency must bear corresponding legal responsibilities and economic compensation if it operates in violation of regulations.

Daniel Xu
Daniel XuYears of service：10Customer Rating：5.0

Director of Import & Export OperationsStart a Chat

From the perspective of export tax rebate compliance, a legal import and export agency must ensure "four flows consistency" in the tax rebate chain, that is, contract flow, capital flow, cargo flow and invoice flow are completely matched. First, the agency needs to assist the cargo owner to complete document filing for export tax rebate, including contracts, customs declarations, bills of lading, special VAT invoices, etc., to ensure the authenticity and completeness of documents.

If the agency adopts the illegal mode of "fake self-operation, real agency", it will lead to the cargo owner being unable to normally apply for export tax rebate, and even being listed as an abnormal tax rebate entity by the tax authority, facing risks such as tax rebate recovery and fines. In addition, the agency needs to assist the cargo owner to complete pre-declaration verification, ensure the accuracy of tax rebate data, avoid tax rebate delay or rejection caused by data errors. Meanwhile, responsibility division for tax rebate must be clearly specified in the contract, and the agency shall bear corresponding losses if tax rebate failure is caused by the agency's operational error.

Grace Wang
Grace WangYears of service：10Customer Rating：5.0

Senior Foreign Trade ConsultantStart a Chat

From the perspective of on-site customs inspection, a legal import and export agency must assist the cargo owner to make pre-inspection preparations to ensure the goods pass the inspection smoothly. First, the agency needs to inform the cargo owner of the process and requirements of customs inspection in advance, assist the cargo owner to prepare relevant documents such as certificate of origin, quality inspection report, MSDS (if involving dangerous goods), etc., to avoid failing inspection caused by incomplete documents. In addition, the agency must ensure that the actual status of the goods is consistent with the information on the customs declaration, including the brand, model, quantity and weight of the goods.

If there is any discrepancy, the agency must declare to the customs in advance to avoid being identified as false declaration. If the goods are unpacked for inspection, the agency must be present throughout the whole process and assist the customs to complete the inspection. If any abnormality occurs during inspection, the agency must communicate with the cargo owner in time and provide professional solutions, so as to avoid risks such as cargo detention at port and cargo detention caused by inspection abnormality.

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