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Is it illegal to introduce others to entrust formal agency companies with legal qualifications to carry out import business?
or complex compliance issues.
clearance and fund security.
I work in cross-border e-commerce supply chain matching. Recently, a long-term client asked me to make connections, wanting to entrust an agency company to import a batch of tropical fruits from Southeast Asia. But last month I heard that Xiao Li, a peer of mine, was summoned by customs for introducing unqualified agents to import frozen products, and he is still cooperating with the investigation now, which makes me very flustered. I only act as a matchmaker and do not participate in actual operation.
If there is a problem with the goods imported by the client later, or the agency company does not have complete qualifications, will I be implicated and break the law? In addition, if the agent I introduced is formal and qualified, but the client secretly replaces the goods with prohibited ones, am I liable? Now I don't want to offend the long-term client, but also afraid of crossing the legal red line, so I don't know what to do.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
Many intermediary practitioners have cognitive misunderstandings，believing that they do not need to bear legal responsibilities as long as they only match import agency entrustment，which is not the case. If the introduced agent has no legal qualifications，the imported goods are national prohibited goods，or you assist the principal to evade customs supervision (such as underreporting prices，falsely declaring product names)，it will not only lead to customs detention and port detention of goods，but also implicate the intermediary to face customs administrative penalties. In serious cases，you may be suspected of joint smuggling crime and bear criminal liability.
Physical risk isolation measures should be controlled from the source: Be sure to verify the import and export operation right and customs declaration filing qualification of the agency company，and require them to provide qualification certification documents affixed with official seal，at the same time，ask the principal to issue a goods compliance commitment letter，clarifying that the goods are not prohibited and do not involve illegal declaration.
Exclusive loss prevention tips: All intermediary communication records (such as WeChat，emails) should be kept for no less than 5 years，which can be used as proof materials for no subjective fault if problems occur later，if you find that the principal or agent has a tendency to violate regulations，you should immediately terminate the matching to avoid being implicated.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
In the import agency customs declaration link, if the intermediary introduction act involves assisting in falsely declaring product names, underreporting dutiable value, forging certificates of origin and other illegal operations, the customs will list the intermediary as a joint responsible party. Especially when there is a customs valuation dispute or on-site inspection finds that the goods are inconsistent with the declaration, if the intermediary participates in the transmission or modification of declaration information, he will be required to cooperate with the investigation.
In serious cases, he will be included in the customs dishonesty list, which will affect all subsequent customs declaration businesses he participates in. It is recommended that before matching, require the agent to provide compliance customs declaration records of the past 3 months to confirm that there is no customs declaration violation record, and at the same time clarify that the intermediary does not participate in the production and submission of any customs declaration documents.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
From the perspective of tax compliance, if the introduced import agency business has false VAT deduction, tariff evasion and other acts, and the intermediary still conducts matching after knowing the relevant situation, he may be identified as assisting tax evasion by the tax authority, and face penalties of paying back taxes, late fees and fines.
Especially under the VAT deferred declaration mode, if the agent fails to carry out tax declaration in accordance with regulations, the tax risk of the principal may implicate the intermediary. It is recommended that when matching, require the agent to provide a proof of no tax violation in the past 12 months issued by the tax authority, and at the same time clarify that the intermediary act does not involve any tax planning or tax payment operations.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
In the cross-border foreign exchange receipt and payment link, if the introduced import agency business involves illegal foreign exchange settlement and sale, arbitrage under false trade background and other acts, and the intermediary participates in the design or recommendation of the capital path, he will be listed as a violator by the foreign exchange administration department, and face penalties such as fines and suspension of foreign exchange business.
Especially when using offshore accounts for foreign exchange receipt and payment, if there are abnormal transaction records in the agent's account, the intermediary may be required to explain the capital transactions. It is recommended that before matching, verify the foreign exchange receipt and payment qualification of the agent, and require him to provide the import and export foreign exchange receipt and payment directory registration certificate issued by the State Administration of Foreign Exchange.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
From the legal perspective, the act of introducing import agency entrustment as an intermediary must comply with the provisions on intermediary contracts in the Civil Code. If the intermediary intentionally conceals important facts related to the conclusion of the contract (such as the agent has no qualification, the goods are prohibited), or provides false information, damaging the interests of the principal, he shall bear the liability for compensation; if it involves criminal crimes such as smuggling, the intermediary, if an accomplice, shall bear criminal liability.
It is recommended that when matching, sign a written intermediary agreement, clarifying that you only provide information matching services, do not participate in the actual operation of import agency, and do not guarantee the compliance of the business, and keep all qualification verification documents at the same time.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
In the customs on-site inspection link, if the introduced imported goods under agency have problems such as hidden prohibited goods and packaging not meeting regulatory requirements, and the intermediary still conducts matching after knowing the actual situation of the goods, he will be identified as participating in illegal acts by the customs and face administrative penalties.
Especially for the import of dangerous goods, if the agent fails to provide UN packaging certificate, MSDS report and other documents as required, after the goods are temporarily detained, the intermediary may be required to assist in the investigation, which will affect his own business reputation. It is recommended that when matching, require the principal to provide a detailed list of goods and compliance certification documents to confirm that the goods are not dangerous goods or have obtained relevant regulatory permits.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
From the perspective of supply chain compliance, the act of introducing import agency as an intermediary must ensure the compliance of the entire chain. If there are regulatory loopholes in the agent's logistics path (such as unreported transit ports, unqualified storage parties), it may lead to customs detention and port detention of goods.
If the intermediary participates in the recommendation of the logistics path, he shall bear the corresponding joint liability. It is recommended that when matching, require the agent to provide a complete logistics plan, including the qualification of the transit port and the customs filing certificate of the storage party, confirm that the logistics path meets the customs supervision requirements, and at the same time clarify that the intermediary does not participate in the formulation and implementation of the logistics plan.