Does a trade agent constitute an exporter in the legal sense?

In international trade practice,The legal attributes of a trade agent need to be determined in conjunction with the specific business model.。According to the "Convention on Agency in the International Sale of Goods" and the INCOTERMS 2020 rules:

• Itisdividedintotwooperationalmodes:
  • DisclosedAgent:Enteringintoacontractinthenameoftheprincipal.
  • UndisclosedAgent:Conductstransactionsinone’sownname.
• Criteria for Determining the Subject of Customs Declaration:
  • Theactualconsignordisplayedinthe"Shipper"columnofthecustomsdeclarationform.
  • Theshipperinformationrecordedinthebillofladingandothertransportdocuments

In proxy modeWho should file the declaration?

According to the latest export tax rebate policy for 2025,the ownership of tax rebate rights follows the following rules:"Who exports,who",Who gets the tax refund”After the export enterprise receives foreign exchange through the agency company,it needs to provide:

• Production-orientedenterprisesentrustingagentsforexport:
  • Self-operatedexportregistrationisrequired.
  • Pleaseprovideasalescontracttoprovetheownershipofthegoods.
• Trading company entrusted agency export:
  • Theagentshallissuethe"CertificateofAgencyExportGoods".
  • Theproofofforeignexchangereceiptmustbeprovidedbytheentrustingparty.

The 3 Major Compliance Risks of Using Proxies for Businesses

After the implementation of the new regulations on AEO certification by the customs in 2025,agents need to pay special attention to the following matters in their business operations:

• Documentconsistencyrisk:
  • ThediscrepancyinproductnamesbetweenthecustomsdeclarationformandtheVATinvoicemustnotexceed15%.
  • IncorrectHSCodeDeclarationJointLiability
• Foreign exchange verification risk:
  • Theentrustedforeignexchangecollectionmustcompletetheforeignexchangemonitoringdeclarationwithin90days.
  • Cross-borderRMBsettlementmustmatchthedeclaredcurrencytype.
• Anti-Money Laundering Review Risk:
  • MonitoringofAbnormalFundFlowsinProxyAccounts
  • UpdateofCounterpartyCountryRiskRatings

4 Golden Rules for Choosing a Trade Agent

Based on 20 years of international trade service experience,we recommend clients to focus on:

• Verifyagentqualifications:
  • CustomsAEOcertificationlevel
  • SAFEclassificationrating
• Clarify the contract terms:
  • AgreedIntellectualPropertySecurityClause
  • DefinetheResponsibilityforDocumentCustody
• Establish a reconciliation mechanism:
  • Monthlyverificationofcustomsdeclarationdata
  • QuarterlyReviewofForeignExchangeIncomeandExpenditureDetails
• Reserving Legal Remedies:
  • Agreedjurisdictionfordisputeresolution
  • Insureexportcreditinsurance

Analysis of typical dispute cases

The key points revealed by the export dispute entrusted to an agent by a certain bathroom company in 2024:

• Keyissuesindispute:
  • Theconsignoronthecustomsdeclarationformshowsthenameoftheagencycompany.
  • Thevalue-addedtaxinvoiceisissuedtotheoverseasintermediary.
• Court ruling:
  • Theactualexporterisidentifiedasthemanufacturingenterprise.
  • Theagencycompanybearstheadministrativepenaltyforfalsedeclaration.

New Trends in Agency Services in the 2025s

With the changes brought about by the full implementation of RCEP:

• DeclarationofOriginSystem:
  • Self-declarationbyapprovedexporters
  • Agenciesneedtoupdatethereviewprocess.
• Digital Trade Regulation:
  • ConfirmationofLegalValidityofElectronicCustomsDeclaration
  • Blockchaindocumentnotarizationrequirements