I recently plan to import a batch of goods through an agency company but have no prior experience with agency imports, so I'm unclear about the payment process. I'd like to ask: in the case of agency-imported goods, should the payment be made by the client or the agency party? Are there any relevant regulations or industry practices? I hope someone knowledgeable can explain this in detail. Thank you.
In Guangzhou, planning to use export agency services for goods and inquiring whether tax payment is required, the types of taxes involved, and the tax payment process. The best answer indicates that if the goods qualify for tax refund, the "exemption, credit, and refund" policy applies; otherwise, they are treated as domestic sales subject to tax. The main taxes are VAT and consumption tax, with the refund process being relatively complex and requiring accurate preparation of documentation.
I'm confused about the payment matters for goods imported by our company through an agency. I don't know to whom to pay, what payment methods are available, and what precautions should be taken. The best answer points out that generally, payment is made to the agent. Common payment methods include bank telegraphic transfer, letter of credit, etc. It also emphasizes that before making the payment, one should check the contract terms and execute the payment process in accordance with the contract, which can effectively avoid disputes.
The company plans to engage in export agency business but is unclear about income recognition and calculation methods. It asks whether financial treatment should be based on receiving payments from clients or the customs declaration time of exported goods, and whether income calculation should be a percentage of export value or other methods. The best answer states that export agency income recognition follows the accrual basis, can be confirmed upon customs declaration completion, typically treats agency fees as income (calculated as a percentage of export value), and requires proper financial record-keeping.
The company has engaged an import agent for import business but is unsure how to pay the agent, inquiring about payment methods, their pros and cons, and the timing of payments. The best answer suggests that payment methods include wire transfer (T/T), letter of credit (L/C), and collection, with T/T being fast but requiring accurate information, L/C being secure but involving cumbersome procedures, and collection being high-risk due to reliance on commercial credit. For payment timing, a 30% - 50% deposit can be paid in advance, with the balance paid after the goods arrive and pass inspection.
Our company intends to find an agent to handle export business and has doubts about who will receive the goods payment and who will pay in the agency export, fearing problems in the capital transactions. The best answer points out that generally the agent receives the goods payment and transfers it to the consignor after deducting the fees. The export-related fees are usually borne by the consignor and can be prepaid by the agent on behalf of the consignor. The specific arrangements for receiving and paying should be clearly stipulated in the agreement.
Planning to use an export agency platform to handle the company's export business, inquiring about potential risks in practical operations, such as non-payment or shipping issues. The best answer highlights credit, operational, and policy risks, emphasizing that choosing a reputable and experienced platform like Zhongshitong with robust risk control mechanisms can mitigate risks, and pre-assessment is crucial.
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Professional consultant answers
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In agency import transactions, the payment subject is typically determined by the agency agreement. There are generally two common scenarios. One is payment by the agency party, which often applies when the agency party signs the import contract in its own name. In this case, the agency party, as the contractual entity, is responsible for making payments to the overseas supplier. This approach helps the agency party control the entire import process, including goods quality and delivery timelines. The other scenario is payment by the client, where the client directly manages fund flows and the agency agreement explicitly stipulates client payment. In such cases, the client can make payments directly to the overseas party, but the agency party must provide necessary assistance, such as supplying import contracts, customs declarations, and other payment-related documents. Regardless of the payment method, compliance with national foreign exchange regulations is essential.
Additionally, tax implications must be considered. Different payment subjects may affect the payment and deduction of taxes like VAT and customs duties on imported goods. Therefore, consulting a financial or tax professional before determining the payment subject is advisable.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally, if the agency party has a close relationship with the supplier, it may handle payments to facilitate management and ensure smooth delivery. This helps coordinate relationships and avoids delays caused by untimely client payments.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the client has sufficient funds and prefers to control the payment process, they can make the payments directly. As long as the agency party provides the necessary documentation and complies with foreign exchange regulations, this arrangement is acceptable.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Some companies follow the principle of "who receives the goods, who pays" for clearer accounting. This means the client makes payments, simplifying financial reconciliation and cost control.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In practice, if the agency party is financially strong and reputable, clients often prefer them to handle payments, as they are more familiar with the process and regulations.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If imported goods involve special regulatory requirements, this may influence the choice of payment subject. For sensitive goods, agency payment may simplify subsequent procedures.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If the client has specific foreign exchange arrangements and wishes to use their own forex account, they may choose to pay directly, with the agency party assisting in completing the process.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Sometimes, to benefit from certain forex incentives, the payment subject is determined by policy requirements—either the agency party or the client.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In long-term agency import relationships, if the agency party has consistently handled payments smoothly, this practice may continue in subsequent transactions.