Under normal circumstances, in pure agency export, the agent does not need to conduct foreign exchange settlement. In the pure agency export mode, the agent is mainly responsible for providing services in the export process, such as customs declaration and commodity inspection, and is not responsible for the actual receipt of foreign exchange and foreign exchange settlement. Because the ownership of the goods and the payment for goods belong to the principal, the principal should normally handle the receipt of foreign exchange and foreign exchange settlement by itself.
However, there are also special cases. If the principal authorizes the agent to collect foreign exchange on its behalf, then after the agent receives the foreign exchange, it needs to conduct foreign exchange settlement according to the principal's instructions and pay the RMB amount after foreign exchange settlement to the principal. This requires the agent and the principal to clearly stipulate in the agency agreement the liability attribution and operation process for the receipt of foreign exchange and foreign exchange settlement to avoid subsequent disputes. In short, the key is to see the definition of the liability for the receipt of foreign exchange and foreign exchange settlement in the agency agreement.
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Under normal circumstances, in pure agency export, the agent does not need to conduct foreign exchange settlement. In the pure agency export mode, the agent is mainly responsible for providing services in the export process, such as customs declaration and commodity inspection, and is not responsible for the actual receipt of foreign exchange and foreign exchange settlement. Because the ownership of the goods and the payment for goods belong to the principal, the principal should normally handle the receipt of foreign exchange and foreign exchange settlement by itself.
However, there are also special cases. If the principal authorizes the agent to collect foreign exchange on its behalf, then after the agent receives the foreign exchange, it needs to conduct foreign exchange settlement according to the principal's instructions and pay the RMB amount after foreign exchange settlement to the principal. This requires the agent and the principal to clearly stipulate in the agency agreement the liability attribution and operation process for the receipt of foreign exchange and foreign exchange settlement to avoid subsequent disputes. In short, the key is to see the definition of the liability for the receipt of foreign exchange and foreign exchange settlement in the agency agreement.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally speaking, in pure agency export, the agent is not involved in foreign exchange settlement. The receipt of foreign exchange and foreign exchange settlement are the matters of the principal. The agent only needs to complete the agency services as agreed in the agreement.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the principal does not have special requirements, the agent does not need to conduct foreign exchange settlement. But if it helps to collect foreign exchange on behalf of the principal, then it involves foreign exchange settlement and needs to be operated according to the process.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In pure agency export, if the payment for goods is directly given to the principal, the agent does not need to conduct foreign exchange settlement. If it collects foreign exchange on behalf of the principal and then transfers it to the principal, it needs to conduct foreign exchange settlement first.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It depends on what is written in the agency contract. If it is stipulated that the agent is responsible for the receipt of foreign exchange and foreign exchange settlement, then it has to do it, otherwise, generally not.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
For normal agency export, the agent does not conduct foreign exchange settlement. The receipt of foreign exchange and foreign exchange settlement are all handled by the principal itself. If there is a special agreement for the agent to collect foreign exchange on behalf of the principal, then the agent has to conduct foreign exchange settlement.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
When it comes to pure agency export, the agent generally does not participate in foreign exchange settlement. It is more common for the principal to handle the receipt of foreign exchange and foreign exchange settlement by itself.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
It mainly depends on how the two parties agree. If it is not specifically stated that the agent is responsible for the receipt of foreign exchange and foreign exchange settlement, then the agent does not need to do this.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The agent usually does not conduct foreign exchange settlement, unless it has an agreement with the principal to collect foreign exchange and conduct foreign exchange settlement on its behalf, then the relevant operations will be involved.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Generally, it is the principal that conducts foreign exchange settlement. The agent only provides services in the export process, unless the contract clearly states that the agent is responsible for foreign exchange settlement.