Agency export,Does revenue really equal the contract amount?

Many companies mistakenly believe that the revenue from export agency services iscustoms clearanceThe contract amount listed on the sheet is not the actual revenue; the following expenses must be deducted:

• Agency service fee (typically 1%–5% of the contract value)
• International logisticsExpenses (ocean freight/air freight/insurance, etc.)
• Bank charges (wire transfer fees, letter of credit issuance fees, etc.)
• Inspection/certification and other third-party service fees

According to the "Guidelines for the Supervision of Agency Export Business" issued by the General Administration of Customs in 2023, agency enterprises must provide the principal with a complete fee schedule, and companies are advised to require the agent to issue it.Itemized Expense BreakdownProceed with verification.

How do FOB and CIF quotation methods affect actual profits?

DifferentTrade termsDirectly affects the calculation of a company’s actual revenue:

• FOB price: Revenue = Contract Amount – Domestic Transportation/Shipping Charges
• CIF price: Revenue = Contract Amount - International Freight - Insurance
• EXW price: Revenue = Contract Amount – All Domestic Logistics Costs

A 2024 export case from a Zhejiang lighting manufacturer shows that when quoting CIF, the actual revenue was 12.8% lower than under FOB terms, primarily due to a sudden adjustment in shipping surcharges.

Export tax refundShould it be recorded as revenue or as a cost?

This is the most common accounting pitfall; the correct approach is:

• Tax refund belongs toState financial subsidies, it should be accounted for separately
• Calculation formula: Tax refund amount = VAT invoice amount × Tax rebate rate
• Actual Income = Foreign Exchange Income ×The exchange rate + 退稅款

Pay special attention to the newly implemented 2025Export tax refundElectronic Management SystemEnterprises are required to complete the declaration before the 5th of each month; otherwise, it will affect the efficiency of capital turnover.

How do exchange-rate fluctuations affect the final amount received?

It is recommended to adopt a three-tier exchange-rate risk management approach:

• as agreed upon at the time of signingExchange Rate Protection Clause
• Lock in the exchange rate through a bank-executed forward foreign exchange settlement.
• Establish a foreign-exchange fluctuation reserve (a 2%–5% provision is recommended)

A Qingdao-based machinery exporter suffered a 23% hit to its 2024 net profit due to euro-denominated settlements without any FX hedging—a sobering lesson worth heeding.

How can we verify the accuracy of the revenue calculations provided by the agent?

It is recommended to verify according to the following steps:

• Verify with the bankPer 2025s new forex management policies, key points for agency export forex handling:With Proxy Billing
• 17. VerificationCustoms export data(available for inquiry through a single window)
• Request to provideVAT input invoicesphotocopies
• comparisonAdditional Clauses to the Export ContractCheck billing items

Pursuant to the Cross-Border Trade Services Standards newly implemented in 2025, intermediary enterprises must retain complete business records for at least five years, and the commissioning party has the right to request an audit at any time.