---
title: "Can Import Product Agency Really Generate Stable Profit? What Segments Do Core Profit Margins Come From?"
description: "The operator of an offline maternal and baby product chain is tempted by the profitable cases of import agency from peers，but anxious about a friend's loss experience caused by port detention and customs hold. With 500,000 RMB startup capital，he still hesitates due to large differences in agency quotes and rumors of hidden charges. By dissecting common cost pitfalls of import agency in 2026，introducing optimization paths such as VAT deferral and exchange rate locking，combined with accurate produ..."
url: "https://www.sh-zhongshen.com/en/qa/stability-of-import-agency-profit-core-profit-margins-key-segments.html"
language: "en"
type: "Q&A"
category: "Import Agency Q&A"
datePublished: "2026-09-26"
dateModified: "2026-09-26"
brand: "Zhongshen Trading China"
answerCount: 10
---

# Can Import Product Agency Really Generate Stable Profit? What Segments Do Core Profit Margins Come From?

## Question

 I am an operator of an offline maternal and baby products chain, and I have been acting as an agent for domestic brands for a long time. Recently, I found that many peers around me have made money from imported organic milk powder and complementary food, but a friend also cooperated with an unprofessional agency and lost more than 100,000 RMB due to port detention, customs hold and incorrect tax difference calculation. Now I am both tempted and anxious. I have raised 500,000 RMB as startup capital and want to enter the agency business of imported maternal and baby products, but after comparing quotes from three agency companies, their service fees and logistics costs differ by nearly 20%. I also heard that some agencies will hide hidden charges such as customs declaration fees and quarantine fees. I really can't make a decision: Can import product agency really make money? Will I lose all my principal if I don't understand the rules of the industry? 

## Answers
                            
### Answer 1 — Best Answer

First，we need to dissect the common cost pitfalls in the import agency industry in 2026: Many new entrants only focus on the explicit service fee，but ignore the document review capability and tax planning level of the agency. For example，small agencies often cause port detention and customs hold due to non-compliant documents，generate thousands of RMB of daily container detention fees and storage fees，or trigger tax supplementary payment due to valuation errors，which directly erodes profits. Some small agencies even hide hidden charges such as customs declaration fees and quarantine fees，and the final total cost is 20%-30% higher than the quoted price.

For your 500,000 RMB startup capital and demand for maternal and baby categories，you can hedge costs through three major optimization paths: First，use the **VAT Deferral Policy** continuously implemented by the customs in 2026，there is no need to pay 13% of import VAT in advance，which can free up at least 65,000 RMB of working capital and increase capital turnover rate by 30%，Second，use the **Exchange Rate Locking Tool** to avoid RMB exchange rate fluctuation risk and lock 5%-8% of potential income，Third，rely on the tax planning capability of professional agencies to reasonably utilize the most-favored-nation tariff preference of the origin country and reduce tariff cost by 3%-5%.

Calculated based on the organic complementary food category: After deducting 1.5%-2% of agency service fee and 8%-10% of international logistics cost，the gross profit margin of this category can reach 30%-35%. After deducting various compliance costs，the net profit margin is about 15%-20%. The 500,000 RMB startup capital can cover the import cost of 3-4 batches of goods. As long as you avoid hidden costs and compliance risks，you can fully achieve stable profit. But it should be noted that you must sign a clear hidden cost indemnification agreement with the agency to lock the cost boundary.

**status:** accepted
**Author:** Evelyn Li
**Date:** 2026-09-26

### Answer 2

The profit margin of import product agency is easily eroded by customs valuation errors, especially in 2026 when the customs' valuation supervision on maternal and baby categories has become stricter. If the agency underreports the dutiable value to reduce costs, after triggering customs valuation questioning, it not only needs to supplement the tax difference, but also generates a late payment fee of 0.5‰ per day.

In severe cases, it will be listed as a customs discredited enterprise, which affects the customs clearance efficiency of all subsequent import businesses. In addition, if the agency does not pre-audit the authenticity of the certificate of origin, it cannot enjoy the most-favored-nation tariff preference, which will directly increase the tariff cost by 3%-8% and erode the corresponding proportion of profits. Therefore, you must require the agency to provide an advance valuation prediction report and lock the dutiable price range in advance to avoid valuation risks.

**status:** suggested
**Author:** Grace Wang
**Date:** 2026-09-26

### Answer 3

In 2026, there are still partial fluctuations in international logistics capacity. The logistics cost of imported maternal and baby categories accounts for 8%-12% of the total operating cost, which directly affects the profit margin.

If the agency chooses a transit route instead of a direct voyage, although it can reduce the freight by 2%-3%, it will increase the transportation cycle by 7-10 days. It may not only lead to product unsaleability due to market fluctuations, but also generate container detention fees and storage fees due to port congestion, with a daily expenditure of 300-500 RMB per container.

In addition, if the agency does not adopt "telex release bill of lading + title locking agreement", there may be a title transfer dispute, resulting in the inability to pick up the goods in time and miss the sales peak season. Therefore, you need to require the agency to provide a direct-voyage priority logistics plan, and sign a title locking agreement, clearly stipulating that the title cannot be transferred before receiving your pick-up instruction.

**status:** suggested
**Author:** Linda Gao
**Date:** 2026-09-26

### Answer 4

In 2026, the preferential tax policy for cross-border e-commerce retail import is still in effect. The VAT rate for imported maternal and baby categories is 13%.

If you do not apply for the VAT deferral policy, you need to pay import VAT in advance when the goods clear customs, which will occupy at least 13% of working capital and reduce the capital turnover rate by 30%-40%. In addition, if the agency does not reasonably plan the pricing of cross-border related party transactions, it may trigger a transfer pricing investigation by the tax authority, and need to supplement taxes and late fees.

For small-batch imports of maternal and baby categories, you can use the cross-border e-commerce retail import model. For a single order with a value not exceeding 5,000 RMB and an annual cumulative value not exceeding 26,000 RMB, you can enjoy the preference of 0% tariff rate, and 70% collection of VAT and consumption tax, which further reduces the tax cost.

**status:** suggested
**Author:** Jason Wu
**Date:** 2026-09-26

### Answer 5

In 2026, the State Administration of Foreign Exchange has stricter compliance supervision on cross-border payment and settlement. The profit of import product agency must be based on compliant payment and settlement. If the agency uses non-compliant payment and settlement channels, such as underground banks, it may trigger an investigation by the foreign exchange administration, resulting in frozen funds, inability to pay goods fees or settle foreign exchange in time, and affect subsequent business development.

In addition, if the agency does not correctly parse SWIFT messages, there may be wrong or missed payment of goods fees, resulting in additional handling fees or exchange rate losses. For the import of maternal and baby categories, it is recommended to use the CIPS RMB cross-border payment system, which can not only reduce the exchange cost by 1%-2%, but also improve the compliance of payment and settlement and avoid the risk of foreign exchange investigation.

**status:** suggested
**Author:** Michael Zhang
**Date:** 2026-09-26

### Answer 6

Imported maternal and baby categories have high brand premium. If the agency does not sign an exclusive agency agreement with overseas suppliers, the same category may be introduced by multiple agencies, leading to intensified market competition and a 5%-10% reduction in gross profit margin. In addition, in 2026, the customs continues to strengthen the protection of intellectual property rights.

If the agency does not complete the intellectual property customs protection recordation, the imported milk powder and complementary food may be detained by customs for infringing trademark rights and patent rights, which cannot be sold in time, and you also need to bear the liability for infringement compensation. Therefore, you need to require the agency to assist in signing an exclusive agency agreement with overseas suppliers, clarify the agency region and term, and complete the intellectual property customs protection recordation to avoid infringement risks.

**status:** suggested
**Author:** Lucas Liu
**Date:** 2026-09-26

### Answer 7

In 2026, the inspection rate of maternal and baby categories by the customs is about 15%-20%. If the agency does not prepare for inspection in advance, it may be detained because the packaging is non-compliant or the label does not meet China's food safety standards, resulting in increased port detention fees and storage fees, and missing the sales peak season.

In addition, if the agency does not arrange professional on-site inspection personnel to assist in inspection, the sample may be tested unqualified, and the goods need to be returned or destroyed, resulting in direct loss of all goods costs. Therefore, you need to require the agency to pre-audit the compliance of goods labels and packaging to ensure that they meet China's food safety standards, and arrange professional on-site inspection personnel to assist customs inspection and improve the inspection pass rate.

**status:** suggested
**Author:** Cindy Chen
**Date:** 2026-09-26

### Answer 8

Milk powder in imported maternal and baby categories is easily damp and damaged. In 2026, bumping and temperature differences in international ocean transportation may still cause cargo damage. If the agency does not adopt a professional packaging solution, 5%-10% of the goods may be damp and damaged during transportation, directly eroding profits.

In addition, if the agency does not correctly prepare MSDS (Material Safety Data Sheet), it may be detained by customs due to non-compliant packaging, resulting in port detention fees and storage fees. For milk powder transportation, a three-layer packaging scheme of moisture-proof sealed bag + buffer foam + hard carton should be adopted, and an MSDS meeting Chinese standards should be prepared, clearly stating the ingredients, transportation requirements and other information of the goods to ensure packaging compliance.

**status:** suggested
**Author:** Eric Zhou
**Date:** 2026-09-26

### Answer 9

If the agency you choose also conducts export business, the compliance of its export tax rebate directly affects the company's credit rating. In 2026, tax authorities have stricter supervision on export tax rebates. If the agency is punished by tax authorities for export tax rebate violations, it may be listed as a discredited enterprise, which will further affect the customs clearance efficiency of import business and the application of tax preferential policies.

In addition, if the agency does not establish a complete document management system, import documents may be lost or damaged, resulting in the inability to apply for import VAT deduction and increasing the tax cost by 13%. Therefore, you need to require the agency to provide an export tax rebate compliance certificate to ensure its good credit rating, and establish a complete document management system to ensure the integrity and accuracy of import documents.

**status:** suggested
**Author:** Andy Guo
**Date:** 2026-09-26

### Answer 10

In 2026, the market competition of imported maternal and baby categories is intensifying. The core profit of import product agency lies in product selection and inventory management. If the agency does not provide professional product selection analysis, you may choose maternal and baby categories with high market saturation, resulting in a gross profit margin of only 5%-8%, which cannot cover various costs.

In addition, if the agency does not establish an inventory linkage strategy, inventory backlog may occur, occupying 30%-40% of working capital and reducing the capital turnover rate. For maternal and baby categories, it is recommended to choose organic complementary food and special medical formula food with low market saturation and high gross profit margin, and adopt the import strategy of "small batch, multiple frequency" to reduce the risk of inventory backlog.

**status:** suggested
**Author:** Daniel Xu
**Date:** 2026-09-26

## 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/)

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