Which accounting category should import equipment agency fees be recorded under?

Latest 2025 customs data shows Chinas industrialEquipment ImportsExceeding 1.2 trillion yuan, with 86% of enterprises choosing professional agents for import operations. Asforeign tradea key cost item in agency services, proper accounting treatment of agency fees directly impacts enterprise tax compliance and cost accounting accuracy.

I.Import RepresentationFee Composition Analysis

Complete equipment import agency fees consist of three major components:

• Basic service fee
  • Customs declaration and inspection procedures
  • Transportation insurance coordination
  • Document preparation and review
• Additional Charges
  • Port demurrage advance payment
  • Translation of technical documents
  • Special license application
• Risk Reserve
  • Tariff deposit
  • Emergency fund for accidents

II. Practical Comparison of Different Accounting Treatment Methods

According to the latest 2025 Enterprise Accounting Standards, there are three mainstream approaches to agency fee treatment:

• Fixed asset original value inclusion method

  Allocating agency fees to equipment procurement costs, applicable scenarios:

  • Imported equipment directly used in production
  • Agency fees ≤5% of equipment value
• Administrative expense write-off method

  Recording separately as period expenses, applicable scenarios:

  • Agency services include annual consulting services
  • Equipment is used for non-production purposes such as R&D testing
• Cost and expense hybrid method

  Capitalize basic service fees as assets and record additional fees as expenses. Typical case:

  • An auto parts company imported German machine tools in 2024
  • Customs clearance fees are included in equipment cost, while technical certification fees are listed separately

III. Key Points of Tax Treatment

Announcement No. 38 of the General Administration of Customs in 2025 clarifies:

• VAT deduction requires distinguishing the nature of expenses
  • Direct service fees can be fully deducted
  • Reimbursement-type expenses require tax payment certificates
• Corporate income tax pre-tax deduction standards
  • Single agency fee ≤500,000 yuan can be deducted at once
  • Amounts exceeding this limit should be amortized over 3 years

IV. Golden Rules for Enterprise Selection

Recommended processing methods based on business strategy:

• Asset-heavy enterprisesPrioritize capitalization into fixed assets to reduce current profit volatility
• Technology innovation enterprisesRecommended expense treatment to obtain R&D additional deduction benefits
• Trade intermediariesMust strictly distinguish between agency fees and goods value to prevent related-party transaction risks

A certainMedical EquipmentActual cases from importers show: After adopting hybrid accounting method, corporate income tax burden decreased by 12% while maintaining a healthy debt-to-asset ratio of 55%. With the expanded application scope of the 2025 VAT refund policy for imported equipment, proper agency fee handling will generate greater economic benefits.

Enterprises are advised to request detailed fee breakdown sheets from service providers when signing agency agreements and communicate accounting solutions with accounting firms in advance. Professional foreign trade agency services should include tax planning modules to help enterprises achieve both compliance and efficiency goals.