In the export agency business, the subject of foreign exchange settlement is usually determined according to the entrustment agency agreement. Generally, there are two common situations. First, if the agreement stipulates that the agent is responsible for receiving and settling foreign exchange, after the agent receives the foreign exchange paid by foreign customers, it will settle the RMB to the entrustor according to the exchange rate of the day. In this way, the agent needs to bear the foreign exchange risk, be responsible for the safety of receiving foreign exchange, and pay attention to issues such as exchange rate fluctuations and customer credit.
Second, if the agreement stipulates that the entrustor settles the foreign exchange on its own, the agent is only responsible for transferring the foreign exchange to the entrustor, and the subsequent foreign exchange settlement operations are completed by the entrustor on its own. In this case, the entrustor needs to have its own foreign exchange account and the qualifications for foreign exchange settlement, etc., and at the same time closely follow the changes in foreign exchange policies. In short, when signing the entrustment agency agreement, both parties should clearly define the responsibility for foreign exchange settlement to avoid subsequent disputes.
Professional consultant answers
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In the export agency business, the subject of foreign exchange settlement is usually determined according to the entrustment agency agreement. Generally, there are two common situations. First, if the agreement stipulates that the agent is responsible for receiving and settling foreign exchange, after the agent receives the foreign exchange paid by foreign customers, it will settle the RMB to the entrustor according to the exchange rate of the day. In this way, the agent needs to bear the foreign exchange risk, be responsible for the safety of receiving foreign exchange, and pay attention to issues such as exchange rate fluctuations and customer credit.
Second, if the agreement stipulates that the entrustor settles the foreign exchange on its own, the agent is only responsible for transferring the foreign exchange to the entrustor, and the subsequent foreign exchange settlement operations are completed by the entrustor on its own. In this case, the entrustor needs to have its own foreign exchange account and the qualifications for foreign exchange settlement, etc., and at the same time closely follow the changes in foreign exchange policies. In short, when signing the entrustment agency agreement, both parties should clearly define the responsibility for foreign exchange settlement to avoid subsequent disputes.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Generally speaking, whoever receives the foreign exchange will settle it. If the agency company is responsible for receiving the foreign exchange, it is most likely that the agency company will settle the foreign exchange and then settle the RMB with the entrustor. But if the entrustor directly receives the foreign exchange, it will be settled by the entrustor itself.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
It depends on how the agency contract is signed. If the agency company has the qualification for foreign exchange business operation and the contract stipulates agency foreign exchange settlement, then it will be handled by the agency company, which will be more professional and efficient. If the entrustor wants to take control on its own, it can also strive to settle the foreign exchange on its own.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It depends on the negotiation between the two parties. If the entrustor is familiar with the foreign exchange settlement process and has relevant resources, it is also good to settle the foreign exchange on its own. If not, it is more worry-free to let the experienced agent handle the foreign exchange settlement.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In actual operation, many agents will choose to settle the foreign exchange on their own first and then settle with the entrustor in order to control the capital flow and risks. Of course, if the entrustor has special requirements, other arrangements can also be made.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
It mainly depends on the agency agreement. However, usually the agent settles the foreign exchange more often because they are more experienced in foreign exchange operations and can better cope with issues such as exchange rate fluctuations and reduce risks.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Some agency companies will require themselves to settle the foreign exchange in order to ensure their own interests, so as to ensure the safe conversion of the received foreign exchange into RMB. If the entrustor wants to settle the foreign exchange on its own, it needs to communicate well with the agent.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
No matter who settles the foreign exchange, attention should be paid to the changes in foreign exchange policies. If the agent settles the foreign exchange, the entrustor should supervise the foreign exchange settlement process to ensure that its own interests are not damaged.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally, it is more common for the agent to settle the foreign exchange as they are more proficient in handling foreign exchange. However, if the entrustor has special circumstances or needs, both parties can specify in the agreement that the entrustor will settle the foreign exchange on its own.