In the entrusted agency export business, there are usually two situations for the foreign exchange receipt side. First, the agency side receives the foreign exchange. The agency side exports the goods in its own name and declares to the customs and receives the foreign exchange. In this case, after receiving the foreign exchange, the agency side will transfer the funds to the entrusting side according to the agreement with the entrusting side. This is beneficial for the agency side to control the foreign exchange receipt risk and also convenient for it to handle subsequent export tax refund and other procedures. However, the agency side needs to strictly abide by the agreement with the entrusting side and transfer the funds in a timely and accurate manner.
The other situation is that the entrusting side receives the foreign exchange. In some business models, the entrusting side directly receives the foreign exchange from overseas customers. However, this requires the entrusting side to communicate with the agency side in advance and clearly stipulate it in the contract, because this way may have an impact on the agency side's export operations and tax refund process. In actual operations, the foreign exchange receipt side needs to be determined according to the entrusted agency agreement signed by both sides, the export business model and relevant tax regulations. No matter which side receives the foreign exchange, it is necessary to ensure that the foreign exchange receipt process is legal and compliant to protect the interests of both sides.
In the tax refund process, different foreign exchange receipt sides will indeed affect the operation process, and it is necessary to strictly prepare relevant materials according to the requirements of the tax department to handle the tax refund.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In the entrusted agency export business, there are usually two situations for the foreign exchange receipt side. First, the agency side receives the foreign exchange. The agency side exports the goods in its own name and declares to the customs and receives the foreign exchange. In this case, after receiving the foreign exchange, the agency side will transfer the funds to the entrusting side according to the agreement with the entrusting side. This is beneficial for the agency side to control the foreign exchange receipt risk and also convenient for it to handle subsequent export tax refund and other procedures. However, the agency side needs to strictly abide by the agreement with the entrusting side and transfer the funds in a timely and accurate manner.
The other situation is that the entrusting side receives the foreign exchange. In some business models, the entrusting side directly receives the foreign exchange from overseas customers. However, this requires the entrusting side to communicate with the agency side in advance and clearly stipulate it in the contract, because this way may have an impact on the agency side's export operations and tax refund process. In actual operations, the foreign exchange receipt side needs to be determined according to the entrusted agency agreement signed by both sides, the export business model and relevant tax regulations. No matter which side receives the foreign exchange, it is necessary to ensure that the foreign exchange receipt process is legal and compliant to protect the interests of both sides.
In the tax refund process, different foreign exchange receipt sides will indeed affect the operation process, and it is necessary to strictly prepare relevant materials according to the requirements of the tax department to handle the tax refund.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Generally speaking, if the agency side is more familiar with the foreign trade process and foreign exchange receipt operations, it will be more smooth for the agency side to receive the foreign exchange, which can avoid the risks caused by the entrusting side's lack of experience.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the entrusting side receives the foreign exchange, it is necessary to coordinate with the agency side in advance regarding customs declaration, tax refund and other matters, otherwise it is easy to have problems in these links.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of risk, the agency side's receipt of foreign exchange can better control the risk. If the entrusting side receives the foreign exchange, the agency side will face relatively greater risks, after all, it cannot directly control the funds.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
No matter which side receives the foreign exchange, it must be clearly stated in the contract, otherwise it will be troublesome if there are disputes later, and many subsequent operations are related to the foreign exchange receipt side.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
In some cases, overseas customers specify that the funds should be paid to the entrusting side. At this time, both sides need to communicate well about the foreign exchange receipt and subsequent process arrangements.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In terms of taxation, the tax refund materials and processes corresponding to different foreign exchange receipt sides are different, and it is necessary to pay attention to preparing them according to the regulations.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the agency side receives the foreign exchange, it is necessary to settle with the entrusting side in a timely manner and not withhold the funds to protect the rights and interests of the entrusting side.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
When the entrusting side receives the foreign exchange, it is necessary to inform the agency side in a timely manner so that the agency side can do the subsequent export-related work simultaneously.