--- title: "Can Building Materials Import Agency Achieve Long-Term Stable Profit? What Are the Core Profit Points and Hidden Risks?" description: "Having engaged in domestic building materials wholesale for 5 years，I plan to transform into agency importing high-end stone and waterproof building materials. Some industry peers have earned 20% profit，while others lost over 100,000 RMB due to port congestion and customs detention. With 1.5 million RMB startup capital，I am anxious about missing profit opportunities while stepping into pitfalls，and can barely sleep. Interest hedging analysis can decompose the drawbacks of traditional cost struct..." url: "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html" language: "en" type: "Q&A" category: "Import Agency Q&A" datePublished: "2026-10-10" dateModified: "2026-10-10" brand: "Zhongshen Trading China" answerCount: 10 --- # Can Building Materials Import Agency Achieve Long-Term Stable Profit? What Are the Core Profit Points and Hidden Risks? ## Question I have been engaged in domestic building materials wholesale for 5 years, and recently spotted the market gap for high-end imported stone and waterproof building materials. Some of my peers say they earned 20% profit from import agency business, while others lost over 100,000 RMB due to cargo port congestion, customs detention and cost overrun. I have 1.5 million RMB startup capital and originally planned to launch the business next month, but the more I inquire, the more anxious I get. I am both afraid of missing the profit opportunity and stepping into hidden industry pitfalls. I want to know whether building materials import agency can really make stable profit, where are the core profit points, will factors like exchange rate fluctuation and tariff adjustment wipe out all the profit? Are there any unconsidered cost risks in customs declaration and logistics links? I am so anxious that I can't even sleep well, please give me a practical answer. ## Answers ### Answer 1 — Best Answer The traditional building materials import agency model mostly adopts "actual reimbursement + fixed agency fee"，but most practitioners ignore the erosion effect of hidden costs: for example，exchange loss caused by failing to lock exchange rate in advance，missing tariff reduction due to non-compliance with free trade agreement rules，and failing to predict customs valuation premium in advance. These hidden costs usually eat up 10%-15% of the expected profit，and some new practitioners even suffer direct losses due to port storage fees and customs detention fines. In 2026，cost hedging can be achieved through three core paths to expand profit space: First，use the **VAT Deferral Policy**. For imported building materials at Shanghai Port，applicants can apply for deferred payment of import VAT，no need to prepay 13% of VAT in advance，which is equivalent to releasing nearly 10 million RMB of cash flow for stock preparation or capital turnover，Second，adopt **exchange rate lock-in tools**，sign a forward foreign exchange settlement agreement with the bank to lock the exchange rate between RMB，Euro and US dollar in advance. Our clients saved an average of 7%-9% of exchange rate cost through this method last year，Third，accurately match the tariff reduction rules of RCEP and ASEAN free trade agreements，require overseas suppliers to provide the certificate of origin in advance，and building materials meeting the rules can enjoy 0-6% tariff preference，which is the core incremental profit point. The current entry threshold is not high，startup capital of over 1 million RMB is sufficient，and the core is to master the practical skills of certificate of origin verification and exchange rate lock-in. Dynamic calculation shows that under compliant operation，the net profit of mid-end building materials is 8%-15%，and the net profit of high-end stone and special waterproof building materials can reach 18%-25%，if matched with our **hidden cost guarantee service**，we can ensure that hidden costs do not exceed 3% of the total cargo value，further stabilizing profit expectations. **status:** accepted **Author:** Michael Zhang **Date:** 2026-10-10 ### Answer 2 In the customs declaration link of building materials import agency, the most common problem is valuation dispute, especially for categories such as high-end stone and imported coatings. Shanghai Customs often initiates valuation on the grounds that "the declared price is lower than the industry fair price". If you cannot provide valid transaction certificates, payment receipts, and cost breakdown from overseas suppliers, it may lead to a 10%-20% valuation premium. In 2026, Shanghai Customs launched the "pre-valuation" service, you can submit all complete documents for pre-review 10 days before cargo arrival, lock the valuation result in advance, and avoid port congestion caused by post-arrival valuation disputes. In addition, if related party transactions are involved, you need to prepare the related party transaction pricing explanation in advance to prove the fairness of the transaction price, otherwise you will be required to pay tax according to the customs assessed price, which directly compresses profit. **status:** suggested **Author:** Lucas Liu **Date:** 2026-10-10 ### Answer 3 Logistics risks of building materials import agency are mainly concentrated in cargo title control and container detention fees. For example, when adopting FOB terms, if the forwarder designated by the overseas supplier is unqualified, unauthorized transfer of cargo title may occur; in addition, the container detention fee for heavy cargo such as stone and ceramic tiles is 2-3 times that of ordinary cargo. In 2026, the free storage period of Shanghai Port is adjusted to 7 days. If the free storage period is exceeded, the daily container detention fee can reach 300-500 RMB per container. If the cargo is detained at the port for 10 days, the container detention fee for a single container will eat up nearly 5000 RMB of profit. It is recommended to choose a qualified first-class forwarder based in Shanghai, adopt the mode of "telex release bill of lading + designated domestic forwarder" to control cargo title, and apply to the forwarder for extending the free storage period in advance, which can be extended to 14 days at most, avoiding extra costs. **status:** suggested **Author:** Eric Zhou **Date:** 2026-10-10 ### Answer 4 The core of tax planning for imported building materials in 2026 lies in VAT deferral and related party transaction pricing. In addition to port-level VAT deferral, you can also optimize the cross-border tax structure to retain agency profits in regions with preferential tax policies, but you need to pay attention to BEPS rules to avoid being identified as profit shifting. In addition, if imported building materials are used for domestic engineering contracting, you can apply for VAT input deduction with the engineering contract, but you need to ensure "four-flow consistency", that is, contract flow, capital flow, invoice flow and cargo flow are fully matched, otherwise you cannot get the deduction, which will increase the cost by 13%. If imported building materials are re-exported, you can apply for export tax refund, but you need to complete export tax refund and exemption filing in advance and ensure all documents are complete. **status:** suggested **Author:** Evelyn Li **Date:** 2026-10-10 ### Answer 5 In the payment and settlement link of building materials import agency, the People's Bank of China will implement stricter supervision on cross-border payment and settlement in 2026, especially for building materials imports from regions such as Iran and Turkey. If you do not conduct compliance review before payment, you may be listed on the "watch list", which affects subsequent payment and settlement. It is recommended to use CIPS (Cross-Border Interbank Payment System) for RMB cross-border payment, which not only has lower exchange rate cost, but also higher compliance; in addition, agency payment and settlement requires signing a formal import agency agreement, which clearly defines the subject, amount and time of payment and settlement, avoiding suspicion of capital backflow. If the bank identifies it as abnormal payment and settlement, the capital may be frozen, which affects cargo customs clearance. **status:** suggested **Author:** Andy Guo **Date:** 2026-10-10 ### Answer 6 Legal risks of building materials import agency mainly lie in contract terms and cargo title transfer. For example, contracts from overseas suppliers often hide "soft clauses", such as "delivery will only be arranged after the buyer confirms the sample", but the sample standard is not clearly defined, which may lead to delayed delivery by the supplier; in addition, if the time of title transfer is not clearly defined in the import agency agreement, there may be disputes where the principal demands title transfer before paying the full amount. In 2026, it is recommended to add a "title retention clause" in the agency agreement, that is, the title is transferred only after the principal pays the full amount; meanwhile, require overseas suppliers to provide an irrevocable performance bond, if the supplier delays delivery or the cargo quality is unqualified, you can claim compensation against the bond to avoid losses. **status:** suggested **Author:** Kevin Lin **Date:** 2026-10-10 ### Answer 7 In the on-site inspection link of building materials import agency, the inspection rate of imported stone and coatings by Shanghai Customs will increase to 30% in 2026, mainly inspecting radioactivity, environmental indicators, brand intellectual property rights and other items. If the radioactivity of stone exceeds the standard, it will be required to be returned or destroyed, and the loss can reach 100% of the cargo value; if the MSDS report of coatings does not match the actual cargo, it will be detained by the customs for rectification, which can take 15-30 days and generate high port storage fees. It is recommended to entrust a third-party institution to conduct radioactivity testing and MSDS report verification before cargo shipment, to ensure compliance with Chinese national standards; after arrival at the port, if you receive the inspection notice, prepare the testing report, brand authorization letter and other documents in advance to speed up the inspection process. **status:** suggested **Author:** Cindy Chen **Date:** 2026-10-10 ### Answer 8 For fragile products in building materials import agency, such as glass curtain walls and high-end ceramic tiles, non-compliant packaging is the main cause of cargo damage. In 2026, the International Maritime Association updated the packaging standards for heavy cargo and fragile products, requiring three-layer packaging of "wood frame reinforcement + buffer bubble film + moisture-proof film". If the packaging does not meet the standard, the forwarder may refuse to load the ship, or cargo damage may occur during transportation, with a cargo damage rate of 5%-10%. In addition, imported coatings are dangerous goods, which require UN standard dangerous goods packaging. If the packaging is unqualified, the cargo will be detained by the customs, and can only be cleared after re-packaging. The resulting packaging cost and port storage fee can reach 8% of the cargo value. It is recommended to entrust a professional packaging engineer to design the packaging scheme before cargo shipment, to ensure compliance with international maritime standards. **status:** suggested **Author:** Victor Sun **Date:** 2026-10-10 ### Answer 9 If the agency-imported building materials are used for re-export, the audit focus of export tax refund in 2026 lies in "four-flow consistency" and document filing. If the principal cannot provide export declaration form, special VAT invoice and foreign exchange receipt certificate, export tax refund may not be processed, and the loss can reach 13% of the VAT amount. In addition, export tax refund declaration must be completed within 90 days after cargo export, if the declaration is overdue, the tax refund qualification will be deemed waived. It is recommended to clearly divide the responsibility of export tax refund with the principal in advance when undertaking the import agency business, require the principal to prepare all complete documents in advance, and complete document filing within 15 days after export, to avoid tax refund failure caused by incomplete documents. **status:** suggested **Author:** Grace Wang **Date:** 2026-10-10 ### Answer 10 The core of supply chain optimization for building materials import agency lies in inventory linkage and trade term conversion. In 2026, the domestic building materials market fluctuates greatly. If you adopt CIF terms, you need to bear marine risks and inventory pressure. It is recommended to convert to EXW terms, let the principal bear part of the logistics cost, and adopt the "zero inventory" mode, arrange overseas stocking 15 days in advance according to domestic order demand, avoiding capital occupation caused by inventory backlog. In addition, you can sign a long-term procurement agreement with overseas suppliers to lock the procurement price, avoiding cost increase caused by rising raw material prices. Long-term agreements can reduce procurement prices by 5%-10%, further improving profit margin. **status:** suggested **Author:** Daniel Xu **Date:** 2026-10-10 ## 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": "Can Building Materials Import Agency Achieve Long-Term Stable Profit? What Are the Core Profit Points and Hidden Risks?", "text": "I have been engaged in domestic building materials wholesale for 5 years, and recently spotted the market gap for high-end imported stone and waterproof building materials. Some of my peers say they earned 20% profit from import agency business, while others lost over 100,000 RMB due to cargo port congestion, customs detention and cost overrun. I have 1.5 million RMB startup capital and originally planned to launch the business next month, but the more I inquire, the more anxious I get. I am both afraid of missing the profit opportunity and stepping into hidden industry pitfalls. I want to know whether building materials import agency can really make stable profit, where are the core profit points, will factors like exchange rate fluctuation and tariff adjustment wipe out all the profit? Are there any unconsidered cost risks in customs declaration and logistics links? I am so anxious that I can't even sleep well, please give me a practical answer.", "answerCount": 10, "upvoteCount": 4, "datePublished": "2026-10-10T09:56:39Z", "dateModified": "2026-10-10T10:19:32Z", "author": { "@type": "Person", "name": "Zhongshen Trading China", "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html" } ,"acceptedAnswer": { "@type": "Answer", "text": "The traditional building materials import agency model mostly adopts "actual reimbursement + fixed agency fee"，but most practitioners ignore the erosion effect of hidden costs: for example，exchange loss caused by failing to lock exchange rate in advance，missing tariff reduction due to non-compliance with free trade agreement rules，and failing to predict customs valuation premium in advance. These hidden costs usually eat up 10%-15% of the expected profit，and some new practitioners even suffer direct losses due to port storage fees and customs detention fines. In 2026，cost hedging can be achieved through three core paths to expand profit space: First，use the VAT Deferral Policy . For imported building materials at Shanghai Port，applicants can apply for deferred payment of import VAT，no need to prepay 13% of VAT in advance，which is equivalent to releasing nearly 10 million RMB of cash flow for stock preparation or capital turnover，Second，adopt exchange rate lock-in tools ，sign a forward foreign exchange settlement agreement with the bank to lock the exchange rate between RMB，Euro and US dollar in advance. Our clients saved an average of 7%-9% of exchange rate cost through this method last year，Third，accurately match the tariff reduction rules of RCEP and ASEAN free trade agreements，require overseas suppliers to provide the certificate of origin in advance，and building materials meeting the rules can enjoy 0-6% tariff preference，which is the core incremental profit point. The current entry threshold is not high，startup capital of over 1 million RMB is sufficient，and the core is to master the practical skills of certificate of origin verification and exchange rate lock-in. Dynamic calculation shows that under compliant operation，the net profit of mid-end building materials is 8%-15%，and the net profit of high-end stone and special waterproof building materials can reach 18%-25%，if matched with our hidden cost guarantee service ，we can ensure that hidden costs do not exceed 3% of the total cargo value，further stabilizing profit expectations.", "upvoteCount": 4, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#acceptedAnswer", "datePublished": "2026-10-10T11:53:13Z", "author": {"@type": "Person","name": "Michael Zhang","url": "https://www.sh-zhongshen.com/en/team/michael-zhang/"} } ,"suggestedAnswer": [ { "@type": "Answer", "text": "In the customs declaration link of building materials import agency, the most common problem is valuation dispute, especially for categories such as high-end stone and imported coatings. Shanghai Customs often initiates valuation on the grounds that "the declared price is lower than the industry fair price". If you cannot provide valid transaction certificates, payment receipts, and cost breakdown from overseas suppliers, it may lead to a 10%-20% valuation premium. In 2026, Shanghai Customs launched the "pre-valuation" service, you can submit all complete documents for pre-review 10 days before cargo arrival, lock the valuation result in advance, and avoid port congestion caused by post-arrival valuation disputes. In addition, if related party transactions are involved, you need to prepare the related party transaction pricing explanation in advance to prove the fairness of the transaction price, otherwise you will be required to pay tax according to the customs assessed price, which directly compresses profit.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-2", "datePublished": "2026-10-10T11:27:54Z", "author": {"@type": "Person","name": "Lucas Liu","url": "https://www.sh-zhongshen.com/en/team/lucas-liu/"} } , { "@type": "Answer", "text": "Logistics risks of building materials import agency are mainly concentrated in cargo title control and container detention fees. For example, when adopting FOB terms, if the forwarder designated by the overseas supplier is unqualified, unauthorized transfer of cargo title may occur; in addition, the container detention fee for heavy cargo such as stone and ceramic tiles is 2-3 times that of ordinary cargo. In 2026, the free storage period of Shanghai Port is adjusted to 7 days. If the free storage period is exceeded, the daily container detention fee can reach 300-500 RMB per container. If the cargo is detained at the port for 10 days, the container detention fee for a single container will eat up nearly 5000 RMB of profit. It is recommended to choose a qualified first-class forwarder based in Shanghai, adopt the mode of "telex release bill of lading + designated domestic forwarder" to control cargo title, and apply to the forwarder for extending the free storage period in advance, which can be extended to 14 days at most, avoiding extra costs.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-3", "datePublished": "2026-10-10T11:26:38Z", "author": {"@type": "Person","name": "Eric Zhou","url": "https://www.sh-zhongshen.com/en/team/eric-zhou/"} } , { "@type": "Answer", "text": "The core of tax planning for imported building materials in 2026 lies in VAT deferral and related party transaction pricing. In addition to port-level VAT deferral, you can also optimize the cross-border tax structure to retain agency profits in regions with preferential tax policies, but you need to pay attention to BEPS rules to avoid being identified as profit shifting. In addition, if imported building materials are used for domestic engineering contracting, you can apply for VAT input deduction with the engineering contract, but you need to ensure "four-flow consistency", that is, contract flow, capital flow, invoice flow and cargo flow are fully matched, otherwise you cannot get the deduction, which will increase the cost by 13%. If imported building materials are re-exported, you can apply for export tax refund, but you need to complete export tax refund and exemption filing in advance and ensure all documents are complete.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-4", "datePublished": "2026-10-10T10:55:37Z", "author": {"@type": "Person","name": "Evelyn Li","url": "https://www.sh-zhongshen.com/en/team/evelyn-li/"} } , { "@type": "Answer", "text": "In the payment and settlement link of building materials import agency, the People's Bank of China will implement stricter supervision on cross-border payment and settlement in 2026, especially for building materials imports from regions such as Iran and Turkey. If you do not conduct compliance review before payment, you may be listed on the "watch list", which affects subsequent payment and settlement. It is recommended to use CIPS (Cross-Border Interbank Payment System) for RMB cross-border payment, which not only has lower exchange rate cost, but also higher compliance; in addition, agency payment and settlement requires signing a formal import agency agreement, which clearly defines the subject, amount and time of payment and settlement, avoiding suspicion of capital backflow. If the bank identifies it as abnormal payment and settlement, the capital may be frozen, which affects cargo customs clearance.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-5", "datePublished": "2026-10-10T10:39:27Z", "author": {"@type": "Person","name": "Andy Guo","url": "https://www.sh-zhongshen.com/en/team/andy-guo/"} } , { "@type": "Answer", "text": "Legal risks of building materials import agency mainly lie in contract terms and cargo title transfer. For example, contracts from overseas suppliers often hide "soft clauses", such as "delivery will only be arranged after the buyer confirms the sample", but the sample standard is not clearly defined, which may lead to delayed delivery by the supplier; in addition, if the time of title transfer is not clearly defined in the import agency agreement, there may be disputes where the principal demands title transfer before paying the full amount. In 2026, it is recommended to add a "title retention clause" in the agency agreement, that is, the title is transferred only after the principal pays the full amount; meanwhile, require overseas suppliers to provide an irrevocable performance bond, if the supplier delays delivery or the cargo quality is unqualified, you can claim compensation against the bond to avoid losses.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-6", "datePublished": "2026-10-10T10:38:52Z", "author": {"@type": "Person","name": "Kevin Lin","url": "https://www.sh-zhongshen.com/en/team/kevin-lin/"} } , { "@type": "Answer", "text": "In the on-site inspection link of building materials import agency, the inspection rate of imported stone and coatings by Shanghai Customs will increase to 30% in 2026, mainly inspecting radioactivity, environmental indicators, brand intellectual property rights and other items. If the radioactivity of stone exceeds the standard, it will be required to be returned or destroyed, and the loss can reach 100% of the cargo value; if the MSDS report of coatings does not match the actual cargo, it will be detained by the customs for rectification, which can take 15-30 days and generate high port storage fees. It is recommended to entrust a third-party institution to conduct radioactivity testing and MSDS report verification before cargo shipment, to ensure compliance with Chinese national standards; after arrival at the port, if you receive the inspection notice, prepare the testing report, brand authorization letter and other documents in advance to speed up the inspection process.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-7", "datePublished": "2026-10-10T10:32:54Z", "author": {"@type": "Person","name": "Cindy Chen","url": "https://www.sh-zhongshen.com/en/team/cindy-chen/"} } , { "@type": "Answer", "text": "For fragile products in building materials import agency, such as glass curtain walls and high-end ceramic tiles, non-compliant packaging is the main cause of cargo damage. In 2026, the International Maritime Association updated the packaging standards for heavy cargo and fragile products, requiring three-layer packaging of "wood frame reinforcement + buffer bubble film + moisture-proof film". If the packaging does not meet the standard, the forwarder may refuse to load the ship, or cargo damage may occur during transportation, with a cargo damage rate of 5%-10%. In addition, imported coatings are dangerous goods, which require UN standard dangerous goods packaging. If the packaging is unqualified, the cargo will be detained by the customs, and can only be cleared after re-packaging. The resulting packaging cost and port storage fee can reach 8% of the cargo value. It is recommended to entrust a professional packaging engineer to design the packaging scheme before cargo shipment, to ensure compliance with international maritime standards.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-8", "datePublished": "2026-10-10T10:24:09Z", "author": {"@type": "Person","name": "Victor Sun","url": "https://www.sh-zhongshen.com/en/team/victor-sun/"} } , { "@type": "Answer", "text": "If the agency-imported building materials are used for re-export, the audit focus of export tax refund in 2026 lies in "four-flow consistency" and document filing. If the principal cannot provide export declaration form, special VAT invoice and foreign exchange receipt certificate, export tax refund may not be processed, and the loss can reach 13% of the VAT amount. In addition, export tax refund declaration must be completed within 90 days after cargo export, if the declaration is overdue, the tax refund qualification will be deemed waived. It is recommended to clearly divide the responsibility of export tax refund with the principal in advance when undertaking the import agency business, require the principal to prepare all complete documents in advance, and complete document filing within 15 days after export, to avoid tax refund failure caused by incomplete documents.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-9", "datePublished": "2026-10-10T10:19:33Z", "author": {"@type": "Person","name": "Grace Wang","url": "https://www.sh-zhongshen.com/en/team/grace-wang/"} } , { "@type": "Answer", "text": "The core of supply chain optimization for building materials import agency lies in inventory linkage and trade term conversion. In 2026, the domestic building materials market fluctuates greatly. If you adopt CIF terms, you need to bear marine risks and inventory pressure. It is recommended to convert to EXW terms, let the principal bear part of the logistics cost, and adopt the "zero inventory" mode, arrange overseas stocking 15 days in advance according to domestic order demand, avoiding capital occupation caused by inventory backlog. In addition, you can sign a long-term procurement agreement with overseas suppliers to lock the procurement price, avoiding cost increase caused by rising raw material prices. Long-term agreements can reduce procurement prices by 5%-10%, further improving profit margin.", "upvoteCount": 0, "url": "https://www.sh-zhongshen.com/en/qa/profit-margin-and-hidden-risks-of-long-term-stable-building-materials-import-agency.html#suggestedAnswer-10", "datePublished": "2026-10-10T10:19:32Z", "author": {"@type": "Person","name": "Daniel Xu","url": "https://www.sh-zhongshen.com/en/team/daniel-xu/"} } ] } }, { "@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": "Can Building Materials Import Agency Achieve Long-Term Stable Profit? What Are the Core Profit Points and Hidden Risks?"} ] } ] ```