In the export agency business, generally, the foreign exchange is first transferred to the agent's account. This is because the agent signs the export contract with foreign customers in its own name and is responsible for a series of operations such as customs declaration and receiving foreign exchange. After receiving the foreign exchange, the agent deducts the corresponding agency fees and prepaid expenses, etc., and then pays the remaining amount to the consignor.
The main reason for this operation is that the agent is responsible for handling various affairs in the export process, including dealing with possible foreign exchange risks, such as exchange rate fluctuations. Moreover, from the regulatory perspectives of the customs and the foreign exchange administration, etc., it is more in line with the regulations for the agent, as the subject of export declaration, to receive foreign exchange.
However, the specific situation can also be negotiated and determined by the consignor and the agent in the export agency agreement. If the consignor has sufficient capabilities and resources in terms of foreign customer resources, foreign exchange operations, etc., it can also agree with the agent that the consignor directly receives the foreign exchange. But this situation is relatively rare, and both parties need to clarify details such as the division of responsibilities in advance.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In the export agency business, generally, the foreign exchange is first transferred to the agent's account. This is because the agent signs the export contract with foreign customers in its own name and is responsible for a series of operations such as customs declaration and receiving foreign exchange. After receiving the foreign exchange, the agent deducts the corresponding agency fees and prepaid expenses, etc., and then pays the remaining amount to the consignor.
The main reason for this operation is that the agent is responsible for handling various affairs in the export process, including dealing with possible foreign exchange risks, such as exchange rate fluctuations. Moreover, from the regulatory perspectives of the customs and the foreign exchange administration, etc., it is more in line with the regulations for the agent, as the subject of export declaration, to receive foreign exchange.
However, the specific situation can also be negotiated and determined by the consignor and the agent in the export agency agreement. If the consignor has sufficient capabilities and resources in terms of foreign customer resources, foreign exchange operations, etc., it can also agree with the agent that the consignor directly receives the foreign exchange. But this situation is relatively rare, and both parties need to clarify details such as the division of responsibilities in advance.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Usually, it is defaulted that the agent collects the foreign exchange. After all, the agent is responsible for the export process, and receiving foreign exchange is also a part of the process. Then it will settle with the consignor.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Generally, it is the agent that collects the foreign exchange because the agent handles the relevant procedures for export, and it is more convenient to operate and manage the collection of foreign exchange. Then just pay the consignor according to the agreement.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In most cases, the agent collects the foreign exchange fees. The agent's operation is smoother, and then transfer the money belonging to the consignor according to the agreement later.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Basically, it is the agent that collects the foreign exchange. After all, the agent handles more things in the export link, and collecting foreign exchange can better control the cash flow.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Normally, it is the agent that collects the foreign exchange fees. After deducting the fees, the remaining amount will be given to the consignor, which is convenient for promoting the overall business.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Generally, the foreign exchange is collected by the agent. The agent undertakes more responsibilities in the export business, and collecting foreign exchange is also convenient for its work.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Most of the time, the agent collects the foreign exchange. This conforms to the normal operation of the export business. Just settle clearly with the consignor later.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, the agent collects the foreign exchange fees. This is a common practice in the industry and is conducive to the smooth progress of the business.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Usually, the agent collects the foreign exchange. Because its the export operation, it will settle with the consignor according to the agreement after receiving the foreign exchange.