Agency export,What exactly does the price difference refer to?

The agency export price difference refers toThe difference between the actual export transaction price and the supplier's price provided by the client., This is the primary source of profit for foreign trade agency services. In practical operations, the price difference typically includes the following components:

• Basic agency service fee (typically 1-3% of the cargo value)
• Value-added service costs (e.g.customs clearance, logistics, documentation, etc.)
• Exchange rate risk hedging cost
• Cost of capital occupation (advance tax refund cycle)

What new changes should be considered in the calculation of price differences in 2025?

According to the latest foreign trade policy, special attention must be paid to the handling of agency export price differences in 2025:

• Adjustments to the Rules for Issuing Special Value-Added Tax Invoices:
  • The agent must indicate the phrase "exported on behalf of" in the remarks column of the invoice.
  • Service fees and goods value must be listed separately.
• New regulations from the Foreign Exchange Administration:
  • The price difference must be declared separately under the "Service Trade" category.
  • A single transaction exceeding $50,000 requires submission of a service contract for filing.

How to reasonably allocate price differences without violating regulations?

The compliant allocation of price differences should adhere toThree-document Consistency principle:

• The agency agreement clearly stipulates the calculation method of the service fee.
• The VAT invoice amount matches the actual receipts and payments.
• The declared amount on the customs declaration form matches the received payment amount.

In a certain electromechanical export case, the agent split the price difference into a 1.5% basic service fee + 0.5% exchange rate compensation, which not only complied with industry practices but also passed tax audits, serving as a reference template.

How to avoid the tax risks associated with price differences?

Key Tax Treatment Points Requiring Special Attention in 2025:

• Export tax refundThe link:
  • The agent shall not apply for the goods of the principal.Export tax refund
  • The service fee portion is subject to a 6% value-added tax.
• Income tax treatment:
  • Complete cost accounting vouchers must be retained.
  • The related-party transaction price difference must comply with the arm's length principle.

How to Enhance Business Competitiveness Through Price Differential Design?

Recommended adoptionTiered pricing plan:

• Annual export amount < USD 1 million: 2.5% fixed rate.
• $1-5 million: 2% base fee + 0.3% rebate
• ＞$5 million: 1.8% base fee + 0.5% performance incentive

After adopting this model, a textile agency company saw a 40% increase in customer renewal rates and a 15% rise in profit margins, achieving a win-win situation.

What are the common solutions for price difference disputes?

Recommended process for handling price difference disputes:

• Pre-event Prevention:
  • The price adjustment mechanism is stipulated in the agency agreement.
  • Establish a risk-sharing clause for exchange rate fluctuations.
• Process control:
  • Monthly provision of a detailed discrepancy statement.
  • Notify in writing promptly for any significant cost changes.
• Post-processing:
  • Priority is given to resolution through negotiation.
  • It is recommended to arbitrate if the disputed amount exceeds USD 100,000.