Our company recently needs to import a batch of goods through an agent, but we're unclear about how the payment should be settled. Should we pay the foreign supplier directly or the agent? What is the general process for settlement? Are there any special points to note? We'd appreciate it if someone knowledgeable could help answer this. Thanks!
It is said that someone has just started the entrepot trade business and doesn't know how to receive payments in China, worrying about affecting the capital flow and trade process. The best answer points out that common payment methods include opening a foreign currency account through a domestic bank, which is simple and safe to operate, but the review standards of each bank are different; an offshore account can also be used, which has strong flexibility, but attention should be paid to its maintenance; third - party payment platforms can also be used, but the handling fees may be high, and compliance should be noted in all cases, and trade documents should be retained.
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 has engaged an export agency to handle business, and now the client's payment is pending. The question is whether the export payment should be paid to the entrusting company or the export agency, and the impact on subsequent processes. The best answer clarifies that the payment recipient depends on the cooperation model. For buyout agency export, payment is usually made to the export agency; for general agency export, payment can be made to either party, each with pros and cons, and should be clearly stipulated in the agency agreement to avoid disputes.
I plan to launch an entrepot trading business with India. Due to my lack of understanding of local trading companies, I'm worried about reputation issues and hope everyone can recommend companies with good reputations. The best answer suggests considering various aspects such as the number of years in business, customer reviews, and logistics capabilities. It recommended Zhongshitong, which performs outstandingly in the field of Indian entrepot trade. It has a long operating history, a good reputation, professional logistics, and standardized settlement.
A netizen asked whether the settlement currencies for procurement payments, resale payments, and transportation costs must be consistent in entrepot trade when purchasing from Country A and reselling to Country B. The best answer is that currencies do not have to be consistent in entrepot trade. Different stages can flexibly choose currencies based on trading partners and market conditions, but currency inconsistency may bring exchange rate risks, which can be mitigated by using financial instruments to lock in exchange rates.
The company entrusts an export agency to handle the export of goods, which involves freight settlement. It asks whether export agency freight needs to pay stamp duty and how to calculate and declare it. The best answer states that if the export agency contract contains a freight clause and it falls within the taxable scope, stamp duty needs to be paid. Stamp duty is affixed at a rate of 0.05% of the transportation cost. The taxable amount is calculated by multiplying the freight amount by the tax rate, and the declaration is made through the Electronic Tax Bureau. If the contract is not clear, usually no stamp duty needs to be paid.
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Professional consultant answers
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
There are usually several scenarios for agent import payment settlement. Generally, payments are not made directly to the foreign supplier but to the agent, who then settles with the foreign supplier. The specific process is as follows: First, your company needs to sign an agent import agreement with the agent, clarifying payment terms and other relevant matters. Then, according to the agreement, make the payment to the agent at the specified time, typically via bank transfer or other common methods. After receiving the payment, the agent will arrange subsequent payments to the foreign supplier as per their contract.
During this process, it's crucial to maintain close communication with the agent to stay updated on payment progress and import-related matters. Additionally, ensure that the payment account details are accurate to avoid transfer errors. Keep all payment records and documentation for future auditing or reference purposes.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Payments are usually made to the agent, as they handle the settlement with the foreign party, which standardizes the process and avoids potential issues from direct payments.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The settlement process involves transferring funds to the agent at the agreed time and method, after which the agent handles the payment to the foreign party. Just make sure to follow the contract terms.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Check the agent import agreement for specific payment settlement terms and follow those requirements. Typically, payments are made to the agent for unified arrangement.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Pay attention to exchange rate fluctuations during settlement. If the payment is in foreign currency, rate changes may affect the final amount. Discuss with the agent beforehand on how to handle this.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Don’t just focus on payment; confirm when the agent will complete the foreign settlement to ensure timely and smooth delivery of your goods.