Who exactly are the subjects of receiving and paying the goods payment in the agency export?
Our company intends to find an agent to handle export business and is not quite clear about the receiving and paying of the goods payment. In the agency export mode, who exactly will receive the goods payment and who will pay? I'm worried about problems in the subsequent capital transactions and want to understand it clearly in advance to avoid disputes with the agent. For example, after the goods are exported, to whom will the foreign customers transfer the goods payment? And who will pay for various fees? I hope professional people can help answer these questions.
Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In the agency export, generally the agent receives the goods payment and then transfers it to the consignor. This is because the agent signs the export contract with the foreign customers in its own name, so the foreign customers pay the goods payment to the agent according to the contract stipulations. After receiving the goods payment, the agent deducts the agency fees and the prepaid fees, etc., and then pays the remaining amount to the consignor.
Regarding the payment aspect, such as the customs declaration fees, transportation fees and other export-related fees, they are usually borne by the consignor. But in actual operations, the consignor may entrust the agent to prepay them first, and then the consignor will reimburse the agent later. Doing so can ensure the smooth flow of capital and also conform to the operating specifications of the agency export business. However, the specific arrangements for receiving and paying should be clearly stipulated by both parties in the agency export agreement to avoid subsequent disputes.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Usually the agent receives the goods payment because the agent signs the contract with the foreign merchant. Regarding the fees, if the agreement doesn't specify specially, for miscellaneous fees like the freight forwarding fees, generally the consignor gives the money to the agent and lets the agent pay the relevant parties.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Generally the foreign merchant transfers the goods payment to the agent, and the agent deducts the fees and gives the remaining amount to the consignor. Regarding the payment, depending on the situation, some consignors pay the suppliers directly, and some pay through the agent.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
It is more common for the agent to receive the goods payment. Regarding the payment, for tariffs and such, sometimes the agent prepays them first, and the consignor can just settle with the agent when making the final settlement.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Mostly the agent receives the goods payment and then transfers it to the consignor. Regarding the payment, for example, the inland transportation fees, some consignors give the money to the agent in advance and the agent pays; some agents pay first and then ask the consignor for reimbursement.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When handling agency export, the goods payment is mostly received by the agent. Regarding the payment of fees, if it is agreed in advance, for example, the port miscellaneous fees, the agent can directly deduct them from the goods payment and pay.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally the agent receives the goods payment. Regarding the payment aspect, for example, the inspection and quarantine fees, it is common for the consignor to give the money to the agent and the agent pays the relevant institutions.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
It is quite common for the agent to receive the goods payment. Regarding the payment, for example, the ocean freight, some agents pay first and then settle with the consignor.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In most cases, the agent receives the goods payment. Regarding the payment of fees, for example, the certificate of origin fees, it is possible that the consignor gives the money to the agent and the agent pays.