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“Whoever Imports Shall Make the Payment in Foreign Exchange” Principle: How to Conduct Payment in Foreign Exchange for Import Agency Business?

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Our company intends to import a batch of goods through an agent. We have heard about the regulation of “Whoever Imports Shall Make the Payment in Foreign Exchange” and would like to understand how the payment in foreign exchange should be handled in the case of import agency. Should the payment in foreign exchange be made by us, the consignor, or the agent? What are the special precautions during the operation process? We hope for a detailed explanation. Thank you.

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Professional consultant answers

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

Under the principle of “Whoever Imports Shall Make the Payment in Foreign Exchange”, the payment in foreign exchange for the import agency business is generally made by the agent. Because from the perspective of customs declaration, the agent imports the goods in its own name and is the implementer of the import behavior, so the payment in foreign exchange should also be completed by the agent.

During the operation, the agent needs to handle the payment in foreign exchange procedures at the bank with the import agency agreement signed with the consignor, the customs declaration form and other relevant documents. The consignor shall pay the corresponding purchase price to the agent. It should be particularly noted that after the agent makes the payment in foreign exchange, it should promptly provide the consignor with relevant vouchers such as the payment slip. Meanwhile, the import agency agreement should clearly define the rights and obligations of both parties in the payment in foreign exchange link to avoid disputes. When the bank reviews the payment in foreign exchange, it will strictly check the authenticity and compliance of relevant documents.

When the consignor pays the purchase price to the agent, it should also keep good records of the flow of funds and conduct supervision to ensure the compliance and orderly progress of the business.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

When making the payment in foreign exchange for import agency, the bank will focus on reviewing the authenticity of the import agency agreement, so the terms of the agreement should be clear and accurate.

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

If the consignor makes the payment in foreign exchange by itself, it may lead to the inconsistency between the subject of customs declaration and the subject of payment in foreign exchange, affecting the customs clearance of goods and subsequent foreign exchange verification, etc.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

When the agent makes the payment in foreign exchange, it should ensure that the operating unit on the customs declaration form is consistent with the subject of payment in foreign exchange to avoid problems.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

When making the payment in foreign exchange for import agency, attention should be paid to the changes in foreign exchange policies. There may be different requirements and operation procedures in different periods.

Jennifer Wang
Jennifer WangYears of service:4Customer Rating:5.0

Market development consultantConsult

When the consignor pays the purchase price to the agent, it should try to transfer the funds through regular bank transfers and keep good vouchers.

Sarah Zhang
Sarah ZhangYears of service:8Customer Rating:5.0

Document expertConsult

If problems are encountered during the payment in foreign exchange process, the agent and the consignor should communicate in a timely manner and solve them together.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

For the payment in foreign exchange for import agency in some special supervision areas, there may be special regulations, which should be paid extra attention to.

Emily Liu
Emily LiuYears of service:10Customer Rating:5.0

Settlement and payment expertConsult

After the agent makes the payment in foreign exchange, it should promptly handle relevant tax treatments to avoid tax risks.

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

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