In the agency import and export business, in principle, it is indeed the case that whoever makes the payment receives the payment. Usually, if the agent signs contracts with foreign parties in its own name and makes and receives foreign exchange payments by itself, then the agent is the entity responsible for making and receiving foreign exchange payments. In this case, the agent needs to handle the procedures for making and receiving foreign exchange payments in accordance with relevant foreign exchange management regulations.
If the principal makes and receives foreign exchange payments on its own and the agent only provides agency services, then the principal is the entity responsible for making and receiving foreign exchange payments. It should be noted that regardless of which mode is adopted, foreign exchange management regulations should be followed to ensure the authenticity and compliance of making and receiving foreign exchange payments. For example, relevant documents such as contracts, invoices, and customs declarations should be retained properly for inspection by the foreign exchange regulatory authorities. Meanwhile, the agent and the principal should clearly define the responsibilities for making and receiving foreign exchange payments in the agency agreement to avoid subsequent disputes.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In the agency import and export business, in principle, it is indeed the case that whoever makes the payment receives the payment. Usually, if the agent signs contracts with foreign parties in its own name and makes and receives foreign exchange payments by itself, then the agent is the entity responsible for making and receiving foreign exchange payments. In this case, the agent needs to handle the procedures for making and receiving foreign exchange payments in accordance with relevant foreign exchange management regulations.
If the principal makes and receives foreign exchange payments on its own and the agent only provides agency services, then the principal is the entity responsible for making and receiving foreign exchange payments. It should be noted that regardless of which mode is adopted, foreign exchange management regulations should be followed to ensure the authenticity and compliance of making and receiving foreign exchange payments. For example, relevant documents such as contracts, invoices, and customs declarations should be retained properly for inspection by the foreign exchange regulatory authorities. Meanwhile, the agent and the principal should clearly define the responsibilities for making and receiving foreign exchange payments in the agency agreement to avoid subsequent disputes.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Generally, in agency import and export business, if the agency contract stipulates that the agent will handle all the import and export procedures, then the agent will make and receive foreign exchange payments, but the relevant materials must be complete, otherwise it will be difficult to account for to the State Administration of Foreign Exchange.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The actual operation depends on the situation. If the principal wants to control the cash flow on its own, it can make and receive foreign exchange payments by itself, but it must communicate well with the agent and handle all kinds of procedures by itself without affecting the import and export of goods.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Whoever makes the payment receives the payment mainly to ensure the clarity of foreign exchange transactions. When the agent receives foreign exchange and transfers it to the principal, it must operate in accordance with the regulations and cannot withhold money privately or delay the transfer.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
When the principal makes and receives foreign exchange payments, it must be familiar with foreign exchange policies, such as quota restrictions, otherwise it may not be able to make payments or may encounter problems when receiving payments.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the agent makes and receives foreign exchange payments, there must be standardized financial records for the funds provided by the principal to avoid chaos in the funds.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Regardless of which party makes and receives foreign exchange payments, the procedures at the bank must be completed in a timely manner, otherwise it will affect the delivery time of goods and cause losses to both parties.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Before determining the entity responsible for making and receiving foreign exchange payments, both parties should consider tax issues. Different entities making and receiving foreign exchange payments may affect tax treatment, so it is necessary to plan ahead.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
For enterprises that frequently engage in agency import and export business, when choosing the entity responsible for making and receiving foreign exchange payments, it should be determined in combination with the enterprise's own financial management mode to facilitate subsequent financial accounting.