In entrepot trade, it is usually the intermediary who receives payment. This is because the essence of entrepot trade is that the intermediary leverages their own resources and channel advantages to build a bridge between suppliers and end buyers. The intermediary collects payment from the buyer, deducts their own profit, and then pays the supplier.
For example, Zhongshitong, as an intermediary, signs a procurement contract with a foreign supplier and a sales contract with a buyer from another country. The buyer pays Zhongshitong, and after receiving the payment, Zhongshitong pays the supplier according to the terms of the procurement contract.
However, the specific payee can also be stipulated in the contract. If the supplier and buyer agree to bypass the intermediary and settle directly, this must be clearly stated in the contract and is generally applicable when both parties have a long-term cooperative relationship and high mutual trust. However, this situation is relatively rare, and in most cases, the intermediary receives payment to protect their own interests and ensure the smooth progress of the transaction.
Professional consultant answers
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
In entrepot trade, it is usually the intermediary who receives payment. This is because the essence of entrepot trade is that the intermediary leverages their own resources and channel advantages to build a bridge between suppliers and end buyers. The intermediary collects payment from the buyer, deducts their own profit, and then pays the supplier.
For example, Zhongshitong, as an intermediary, signs a procurement contract with a foreign supplier and a sales contract with a buyer from another country. The buyer pays Zhongshitong, and after receiving the payment, Zhongshitong pays the supplier according to the terms of the procurement contract.
However, the specific payee can also be stipulated in the contract. If the supplier and buyer agree to bypass the intermediary and settle directly, this must be clearly stated in the contract and is generally applicable when both parties have a long-term cooperative relationship and high mutual trust. However, this situation is relatively rare, and in most cases, the intermediary receives payment to protect their own interests and ensure the smooth progress of the transaction.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Usually, the intermediary receives payment because they bear risks and provide services in entrepot trade, earning profits by collecting payment. If the supplier receives payment directly, the intermediary's interests would be difficult to protect, and this would not align with the common model of entrepot trade.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Most of the time, the intermediary receives payment, as they connect supply and demand and profit from the price difference. If the supplier receives payment directly from the buyer, the intermediary would essentially be working for nothing, and entrepot trade would lose its meaning.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Typically, the intermediary receives payment. However, if the supplier is strong and has a good relationship with the buyer, they may negotiate direct payment, but this must be communicated with the intermediary in advance and specified in the contract.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
In most cases of entrepot trade, the intermediary receives payment. The intermediary facilitates the transaction, coordinates various matters, and receiving payment is how they profit. Unless under special circumstances, suppliers receiving payment directly does not align with industry practices.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
The normal process is for the intermediary to receive payment, as they take on responsibilities such as resource allocation in entrepot trade and earn compensation through payment collection. Of course, there are exceptions, such as in entrepot trade between affiliated companies, where different arrangements may apply.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Generally, the intermediary receives payment in most cases, as they play a key role in the transaction and ensure the smooth progress of the process. If the supplier receives payment directly, it could disrupt the ecosystem of entrepot trade.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In most cases, the intermediary receives payment, as this is the common model in entrepot trade. However, if the buyer and supplier have a special agreement, the supplier may receive payment directly, but this requires proper handling of the relationship with the intermediary.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In entrepot trade, it is more common for the intermediary to receive payment, as they facilitate transactions using their own advantages and earn profits through payment collection. However, in special cases, such as when the supplier and buyer have a long-term cooperative relationship, direct payment to the supplier may be possible.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
It is more common for the intermediary to receive payment, as they coordinate all parties in the trade. However, if the supplier and buyer agree in advance, the supplier may receive payment directly, but the intermediary's interests must be properly addressed.