Can I switch import agency companies halfway if service problems occur during import agency cooperation?

Resolved
SERVICE
TRACKING NO. 20260419 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates
I work for a trading company in Shanghai specializing in precision instrument import. The import agency we have cooperated with for 3 years has made consecutive mistakes recently. Last month, a batch of spectrometers imported from Germany was detained by customs for 12 days due to their errors in customs clearance document review, resulting in nearly 20,000 yuan of port demurrage and storage fees. They kept making excuses when we negotiated with them for compensation. Now another two batches of testing equipment imported from Japan are in transit and expected to arrive at the port in 10 days. I can't bear it anymore and want to change the agency, but I am afraid that changing the agency halfway will cause bigger troubles: for example, the old agency withholds documents and refuses to hand them over, the new agency fails to handle customs clearance properly after taking over leading to failure to obtain cargo rights, or it triggers customs compliance warnings. I am so anxious that I can't even sleep well, and I want to ask if I can change the import agency company halfway in this case?

Expert Insights

Expert Q&A

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

Documentation SupervisorStart a Chat

First of all,you should be alert to common industry misunderstandings: many enterprises believe that the replacement can be completed directly as long as the new agency takes over,ignoring core documents held by the old agency (such as import customs declaration power of attorney,bill of lading endorsement authority),which will directly make the new agency unable to carry out normal customs clearance. If goods are detained at the port for more than 14 days,it will also trigger compulsory warehouse transfer or even auction by the customs. At the same time,the old agency may withhold documents on the grounds of unsettled fees,causing cargo right disputes.

Once such risks are triggered,the chain reaction will continue to ferment: port demurrage and storage fees increase by 1-2‰ of the cargo value every day. For precision instruments,irreversible losses may also occur due to unqualified storage environment. At this time,you should immediately launch physical risk isolation measures: apply to the shipping company to change the bill of lading notify party as soon as possible,and at the same time require the old agency to issue a document transfer confirmation letter,clarifying the ownership and transfer time limit of all processed documents.

Exclusive loss reduction tips: sign a tripartite (original agency,new agency,cargo owner) rights and responsibilities division agreement,clarify that cargo rights belong to the cargo owner from the date of signing the agreement,and the new agency shall simultaneously submit an application for changing the customs declaration subject to the customs,and use temporary deposit to replace the tax guarantee of the original agency,so as to ensure the customs clearance process is not interrupted and minimize losses.

Reference: Hydrogen Equipment Import: Key Challenges & Solutions
Lucas Liu
Lucas LiuYears of service:8Customer Rating:5.0

Senior Operations ConsultantStart a Chat

When replacing an import agency company, you should first review the status of customs declaration documents submitted by the original agency: if the declaration has been submitted but not reviewed, the original agency shall submit an application for deleting the declaration form, and the new agency shall rearrange complete declaration materials and submit them to the customs to ensure a logical closed loop of documents; if the review has been completed, you shall simultaneously submit an application for changing the tax payment subject to the customs, and provide the authorization letter for changing the customs declaration subject issued by the cargo owner, so as to avoid customs price review doubts or customs detention caused by inconsistent subjects. If goods are located in special supervision areas, an additional application for changing the transshipment subject shall be submitted. All materials shall be stamped with the official seals of the cargo owner and the old and new agencies, and kept for future reference to deal with subsequent customs audits.

Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

When replacing the agency while goods are in transit, you should confirm the current node of the goods as soon as possible: if the goods have not arrived at the port, submit an application for changing the freight forwarder to the shipping company or airline, change the manifest notify party to the new agency, and at the same time require the original agency to endorse and transfer transport documents such as ocean bill of lading and air waybill to the cargo owner, which will then be endorsed by the cargo owner to the new agency; if the goods have arrived at the port but not been picked up, coordinate with the original agency to release the container pickup note, the new agency shall exchange the bill at the shipping company with the cargo owner's authorization letter, and simultaneously confirm the remaining free storage period at the terminal. If it is insufficient, the new agency can apply for an extension to avoid container detention fees. In addition, a real-time logistics tracking mechanism shall be established to ensure no gap in the connection between the old and new agencies, and prevent loss or wrong delivery of goods.

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

International Logistics & Supply Chain ManagerStart a Chat

When replacing an import agency company, you should focus on the change of the tax payment subject and the connection of VAT deferral: if the original agency has applied for VAT deferral, you shall first submit an application for terminating the deferral to the tax authority, and the new agency shall resubmit VAT deferral filing materials to ensure the continuity of tax declaration; if the original agency has paid part of the taxes, the tax authority shall issue a tax transfer certificate to change the subject of the paid taxes to the cargo owner or the new agency, so as to avoid repeated tax payment. At the same time, review the tax qualifications of the old and new agencies to ensure that the new agency has the VAT deferral application authority for the corresponding imported goods. If cross-border related transactions are involved, adjust the transfer pricing documents simultaneously to avoid triggering transfer pricing investigation by the tax authority.

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

Trade Risk Control ManagerStart a Chat

When replacing an import agency company, you should simultaneously change the registration subject in the foreign exchange bureau's import payment directory to ensure the compliance of the payment process. If the original agency has handled payment procedures, it shall provide payment vouchers and the foreign exchange bureau's verification certificate, and the new agency shall handle subsequent payment or foreign exchange settlement with the payment authorization letter issued by the cargo owner; if RMB cross-border payment (CIPS) is involved, change the CIPS system operation subject to ensure the traceability of capital flow. In addition, review the payment and receipt qualifications of the old and new agencies to avoid funds being frozen by the foreign exchange bureau due to insufficient qualifications, and keep all payment and receipt vouchers and authorization documents for subsequent verification by the foreign exchange bureau.

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

Supply Chain Management ExpertStart a Chat

When replacing an import agency company, you should first terminate the cooperation agreement with the original agency, and clarify the division of rights and responsibilities for incurred fees and uncompleted services; at the same time, sign a formal import agency agreement with the new agency, clarifying cargo right ownership, service content, fee standards and liability for breach of contract. If the original agency withholds documents on the grounds of unsettled fees, you can apply to the court for pre-litigation property preservation and require the handover of all documents; if there is a cargo right dispute, apply to the customs for cargo right confirmation with core documents such as bill of lading and customs declaration form to protect the cargo owner's ownership. In addition, force majeure clauses and guarantee clauses shall be added to the new agreement to clarify the rights and interests protection mechanism under abnormal circumstances.

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

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

When replacing the agency company, if the goods have entered the inspection link, the cargo owner shall issue an authorization letter to designate the new agency as the inspection operator, and require the original agency to hand over existing materials such as inspection notice and sampling record to ensure the continuity of the inspection process. The new agency shall resubmit the inspection application to the customs, clarify the operation subject, and arrange qualified on-site personnel to cooperate with the inspection; if container unpacking inspection is involved, coordinate with the terminal in advance for the unpacking location and time to avoid extra unpacking fees and port demurrage. At the same time, review the inspection operation of the original agency. If there is any mistake leading to inspection failure, submit an explanation to the customs in time to avoid affecting subsequent customs clearance.

Cindy Chen
Cindy ChenYears of service:3Customer Rating:5.0

Key Account ManagerStart a Chat

When replacing an import agency company, if it involves the import of dangerous goods or precision instruments, you should review the packaging and transportation qualifications of the new agency to ensure that it has the packaging processing capacity for the corresponding goods. If the original agency has carried out packaging reinforcement, it shall provide the packaging scheme and MSDS report, and the new agency shall re-inspect the packaging. If there is damage or non-compliance with standards, re-reinforce or replace the packaging in time; if UN dangerous goods packaging is involved, ensure that the new agency has UN packaging filing qualifications, and resubmit the UN packaging inspection report to avoid customs detention or transportation safety accidents caused by non-compliant packaging. In addition, update the packaging information in transport documents simultaneously to ensure consistency with the actual packaging.

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

Director of Import & Export OperationsStart a Chat

When replacing an import agency company, you should evaluate costs and benefits from the perspective of the macro supply chain, establish a cost actuarial model, compare the comprehensive costs of the old and new agencies (including customs clearance fees, transportation fees, taxes, etc.), and evaluate the impact of the replacement on supply chain inventory: if the goods are urgently needed for production, confirm whether the customs clearance time limit of the new agency matches the production plan. In addition, the replacement of agencies should be included in the supply chain risk plan, a multi-agency cooperation alternative mechanism should be established, and the trigger conditions for agency switching under different scenarios should be clarified, so as to avoid affecting the stability of the entire supply chain due to service problems of a single agency, and optimize the cost structure of the import chain to improve overall operational efficiency.

Note: We respect all users' expressions; however, user comments represent their personal views only.