• Welcome to China Foreign Trade Agency!

Who exactly are the subjects of receiving and paying the goods payment in the agency export?

NO.20250831*****

Problem Analysis: *****, Solution: *****, Process and Cost: *****

Get the solution

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.

Quick Consultation :

Professional consultant answers

Robert Chen
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 Yang
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 Chen
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 Zhang
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 Liu
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 Zhou
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 Huang
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 Li
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 Yang
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.

The relevant questions or replies only represent the user’s personal stance and do not represent any views of this website.

You may also like

Agent Export Tax Refund, to Whom is the Tax Actually Refunded? Come and Find Out!

Our company intends to find an agent to handle the export tax refund business. We are wondering whether the tax will be refunded to the entrusting party or the agent, and are worried about disputes arising due to the unclear tax refund subject. The best answer is that generally the tax is refunded to the entrusting party, because the entrusting party is the actual exporter and seller of the goods and bears the profits and losses. However, both parties should sign a detailed agency agreement to clarify their rights and obligations, avoid unclear responsibilities, and protect the interests of the entrusting party.

Do exported goods through an agent need to be taxed?

The company plans to use an agent for exporting goods and inquires whether exported goods through an agent are subject to taxation, the types of taxes involved, and whether there are differences in taxation compared to direct exports by ordinary enterprises. The best answer states that taxation on exported goods through an agent depends on the circumstances. For value-added tax (VAT), the treatment differs based on whether the goods are exempt or eligible for tax refunds. For consumption tax, the refund is handled by the principal. The tax obligations depend on the nature of the goods and the type of principal, differing from direct exports by ordinary enterprises.

Does the agency export business need to confirm the exchange difference?

The company exports through an agency company, and the settlement of goods payment involves foreign currency exchange. It inquires whether the agency export needs to confirm the exchange difference, under what circumstances to confirm it and how to calculate it. The best answer points out that when the agency export involves foreign currency settlement and the exchange rate changes, it is necessary to confirm. Generally, on the balance sheet date, multiply the amount in foreign currency by the spot exchange rate on the balance sheet date and subtract the amount converted at the initial exchange rate to get the difference.

Who will receive the foreign exchange in agency export and what tax issues are involved?

The company plans to export goods through an agency and wants to know who will receive the foreign exchange in agency export and the relevant tax regulations. The best answer states that there are two modes for receiving foreign exchange in agency export: the consignor directly receives the foreign exchange, and the agent receives the foreign exchange and then transfers it to the consignor. Regarding taxation, if the consignor receives the foreign exchange, it shall declare the export tax rebate according to the regulations. If the agent receives the foreign exchange, it needs to provide relevant materials, and at the same time, the agent shall pay value-added tax on the agency fee income. During the operation, relevant vouchers should be well preserved to ensure compliance.

Is agency export business subject to taxation? Let’s find out!

Want to know whether agency export business is taxable, including applicable tax types, rates, and procedures. The best answer clarifies that agents generally don’t pay taxes on exported goods, but agency fee income is subject to VAT under "Modern Services - Business Support Services." The general taxpayer rate is 6%, while small-scale taxpayers face 3% (subject to adjustments). Agents need to declare agency fees normally.

Who will receive the foreign exchange in agency export and what tax types are involved?

The company intends to find an agency company to handle export business and wants to know who is responsible for receiving the foreign exchange in agency export and what tax types are involved. The best answer states that there are usually two situations for receiving foreign exchange: the consignor directly receives the foreign exchange and the agent receives the foreign exchange. The involved tax types include value-added tax, customs duty. If the agent charges a service fee, value-added tax will be involved. In addition, it may also involve additional taxes such as urban maintenance and construction tax, education surcharge, etc.