In the case of export by freight forwarder, there are usually two situations regarding the subject of receiving foreign exchange. One is that the entrusting party directly receives foreign exchange. This situation applies when the entrusting party itself has perfect foreign exchange settlement capabilities and qualifications and clearly stipulates in the cooperation agreement with the agent that the entrusting party is responsible for receiving foreign exchange. The entrusting party's direct receipt of foreign exchange enables it to have more direct control over the cash flow.
The other is that the agent receives foreign exchange, which is common when the entrusting party lacks experience or qualifications in foreign exchange operations. After receiving foreign exchange, the agent deducts relevant fees and then pays the remaining amount to the entrusting party.
Regardless of which method is used, key contents such as the subject of receiving foreign exchange and the responsibilities of both parties must be clearly defined in the agency agreement before receiving foreign exchange. If there are problems with receiving foreign exchange, the responsibilities are divided according to the agreement. If the agreement does not have clear provisions, the attribution of responsibilities is determined according to the actual situation of faults.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In the case of export by freight forwarder, there are usually two situations regarding the subject of receiving foreign exchange. One is that the entrusting party directly receives foreign exchange. This situation applies when the entrusting party itself has perfect foreign exchange settlement capabilities and qualifications and clearly stipulates in the cooperation agreement with the agent that the entrusting party is responsible for receiving foreign exchange. The entrusting party's direct receipt of foreign exchange enables it to have more direct control over the cash flow.
The other is that the agent receives foreign exchange, which is common when the entrusting party lacks experience or qualifications in foreign exchange operations. After receiving foreign exchange, the agent deducts relevant fees and then pays the remaining amount to the entrusting party.
Regardless of which method is used, key contents such as the subject of receiving foreign exchange and the responsibilities of both parties must be clearly defined in the agency agreement before receiving foreign exchange. If there are problems with receiving foreign exchange, the responsibilities are divided according to the agreement. If the agreement does not have clear provisions, the attribution of responsibilities is determined according to the actual situation of faults.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally speaking, it depends on the negotiation between the two parties. If the entrusting party has the ability to receive foreign exchange, it is better for it to receive foreign exchange by itself, with a high degree of control over funds. If it does not have the ability, it can be handed over to the agent to receive foreign exchange, but attention should be paid to the agent's reputation.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
From the perspective of risk, the risk of the entrusting party directly receiving foreign exchange is relatively small because it has direct contact with funds. However, if the agent is chosen to receive foreign exchange, a regular and powerful agent should be selected, otherwise there may be financial risks.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the entrusting party receives foreign exchange, it must ensure that it has legal channels and qualifications for receiving foreign exchange. If the agent receives foreign exchange, it must operate strictly in accordance with the agreement and transfer funds in a timely manner.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In some special cases, it may also involve a third-party platform to receive foreign exchange, but this should be done with caution. It is necessary to ensure that the platform is compliant and reliable, otherwise problems are likely to occur in receiving foreign exchange.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
The currency of receiving foreign exchange also needs to be negotiated in advance, whether it is US dollars, euros or others, to avoid disputes caused by exchange rate and other issues later.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
No matter who receives foreign exchange, the subsequent work such as foreign exchange verification should be done well, otherwise it will affect matters related to enterprise export tax rebates.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the agent receives foreign exchange, attention should be paid to the time node when it pays the entrusting party after receiving foreign exchange, and do not let the funds stay for a long time.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In actual operation, the subject of receiving foreign exchange can also be determined according to the scale and complexity of the business. If the scale is small, the entrusting party may receive foreign exchange by itself. If the scale is large, it may be more appropriate for the agent to receive foreign exchange.