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:

• Export RepresentationIt is divided into two operational modes:
  • Disclosed Agent: Entering into a contract in the name of the principal.
  • Undisclosed Agent: Conducts transactions in one's own name.
• Criteria for Determining the Subject of Customs Declaration:
  • The actual consignor displayed in the "Shipper" column of the customs declaration form.
  • The shipper information recorded in the bill of lading and other transport documents

In proxy modeExport DrawbackWho should file the declaration?

According to the latest export tax rebate policy for 2025, the entitlement to tax rebates follows"Who exports, who"A complete export agency agreement should be attached with:, Who gets the tax refund”After the export enterprise receives foreign exchange through the agency company, it needs to provide:

• Production-oriented enterprises entrusting agents for export:
  • Self-operated export registration is required.
  • Please provide a sales contract to prove the ownership of the goods.
• Trading company entrusted agency export:
  • The agent shall issue the "Certificate of Agency Export Goods".
  • The proof of foreign exchange receipt must be provided by the entrusting party.

foreign tradeThe 3 Major Compliance Risks of Using Proxies for Businesses

After the implementation of the new AEO certification regulations by customs in 2025, agency businesses need to pay special attention to the following:

• Document consistency risk:
  • The discrepancy in product names between the customs declaration form and the VAT invoice must not exceed 15%.
  • Incorrect HS Code Declaration Joint Liability
• Foreign exchange verification risk:
  • The entrusted foreign exchange collection must complete the foreign exchange monitoring declaration within 90 days.
  • Cross-border RMB settlement must match the declared currency type.
• Anti-Money Laundering Review Risk:
  • Monitoring of Abnormal Fund Flows in Proxy Accounts
  • Update of Counterparty Country Risk Ratings

4 Golden Rules for Choosing a Trade Agent

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

• Verify agent qualifications:
  • Customs AEO certification level
  • SAFE classification rating
• Clarify the contract terms:
  • Agreed Intellectual Property Security Clause
  • Define the Responsibility for Document Custody
• Establish a reconciliation mechanism:
  • Monthly verification of customs declaration data
  • Quarterly Review of Foreign Exchange Income and Expenditure Details
• Reserving Legal Remedies:
  • Agreed jurisdiction for dispute resolution
  • Insure export credit insurance

Analysis of typical dispute cases

Key points revealed in the 2024 export agency dispute of a certain sanitary ware enterprise:

• Key issues in dispute:
  • The consignor on the customs declaration form shows the name of the agency company.
  • The value-added tax invoice is issued to the overseas intermediary.
• Court ruling:
  • The actual exporter is identified as the manufacturing enterprise.
  • The agency company bears the administrative penalty for false declaration.

New trends in agency services for 2025

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

• Declaration of Origin System:
  • Self-declaration by approved exporters
  • Agencies need to update the review process.
• Digital Trade Regulation:
  • Confirmation of Legal Validity of Electronic Customs Declaration
  • Blockchain document notarization requirements