In the agency export business, there are usually two situations regarding the subject of receiving foreign exchange. One is that the agency export enterprise receives the foreign exchange. Because the agency export enterprise signs an export contract with foreign customers in its own name, foreign customers pay the purchase price to the agency export enterprise. After receiving the foreign exchange, the agency export enterprise deducts the agency fees and related prepaid expenses, and then transfers the remaining amount to the entrusting party according to the agreement. In this way, the agency export enterprise can better control the risks of receiving foreign exchange and it is also convenient to handle procedures such as the verification of export receipts of foreign exchange.
The other situation is that the entrusting party directly receives the foreign exchange. However, this situation is relatively rare. The details such as the path of receiving foreign exchange need to be clearly agreed in the export contract, and the agency export enterprise may be required to cooperate in providing some materials. Meanwhile, different trade models, contract agreements and local policies may vary. It is recommended that both parties communicate in detail and clearly define the relevant terms of receiving foreign exchange in the agency export agreement before conducting business.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In the agency export business, there are usually two situations regarding the subject of receiving foreign exchange. One is that the agency export enterprise receives the foreign exchange. Because the agency export enterprise signs an export contract with foreign customers in its own name, foreign customers pay the purchase price to the agency export enterprise. After receiving the foreign exchange, the agency export enterprise deducts the agency fees and related prepaid expenses, and then transfers the remaining amount to the entrusting party according to the agreement. In this way, the agency export enterprise can better control the risks of receiving foreign exchange and it is also convenient to handle procedures such as the verification of export receipts of foreign exchange.
The other situation is that the entrusting party directly receives the foreign exchange. However, this situation is relatively rare. The details such as the path of receiving foreign exchange need to be clearly agreed in the export contract, and the agency export enterprise may be required to cooperate in providing some materials. Meanwhile, different trade models, contract agreements and local policies may vary. It is recommended that both parties communicate in detail and clearly define the relevant terms of receiving foreign exchange in the agency export agreement before conducting business.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Generally, the agency export enterprise receives the foreign exchange more often. In this way, the process is smoother. After all, the agency enterprise is more professional in handling foreign trade affairs. It transfers the payment to the entrusting party after receiving the foreign exchange, and the operation is standardized.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Sometimes it also depends on the negotiation between the two parties. If the entrusting party has a close relationship with foreign customers and is confident in receiving the foreign exchange, it may also directly receive the foreign exchange. However, it is necessary to do a good job of connection with the agency export enterprise.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The subject of receiving foreign exchange also depends on whose name the export declaration is made in. If the export declaration is made in the name of the agency export enterprise, it usually receives the foreign exchange and then settles with the entrusting party later.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
From the perspective of risks, the agency export enterprise receiving the foreign exchange can effectively control risks and avoid the situation where the entrusting party fails to receive the payment and then blames the agency enterprise.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In actual operation, some entrusting parties want to directly receive the foreign exchange in order to speed up the capital turnover. Then the time and method of receiving foreign exchange should be clearly written in the agency agreement.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the settlement is made by letter of credit, most of the time the agency export enterprise receives the foreign exchange, because the operation of letter of credit is complex and the agency enterprise is more experienced in handling it.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
There is also another situation where part of the payment is received by the agency export enterprise and part by the entrusting party. The specific proportion and operation method can be negotiated by both parties in advance.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
No matter who receives the foreign exchange, attention should be paid to the foreign exchange management regulations and operate in compliance. Otherwise, penalties may be faced.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the entrusting party has an account abroad, it is also possible to directly receive the foreign exchange abroad, bypassing the domestic agency export enterprise.