Under agency import, usually the entrusting party should purchase foreign exchange. This is because the entrusting party is the actual demander and ultimate beneficiary of the imported goods. From the perspective of economic substance, it should purchase foreign exchange to pay for the goods. However, there are also special circumstances. If there is a clear agreement between the entrusting party and the agent and it complies with the relevant regulations of foreign exchange administration, the agent can also purchase foreign exchange.
In the specific operation process, when the entrusting party purchases foreign exchange, it needs to provide relevant documents such as the agency agreement, import contract, and invoice to the bank to handle the foreign exchange purchase procedures. If the agent purchases foreign exchange, in addition to the above documents, it may also need to provide materials such as the authorization letter of the entrusting party. Meanwhile, no matter which party purchases foreign exchange, it must strictly abide by the regulations of foreign exchange administration, such as not making false declarations and not diverting the foreign exchange purchase funds for other uses. Improper operations may face penalties from the foreign exchange administration department and affect the corporate credit.
Professional consultant answers
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Under agency import, usually the entrusting party should purchase foreign exchange. This is because the entrusting party is the actual demander and ultimate beneficiary of the imported goods. From the perspective of economic substance, it should purchase foreign exchange to pay for the goods. However, there are also special circumstances. If there is a clear agreement between the entrusting party and the agent and it complies with the relevant regulations of foreign exchange administration, the agent can also purchase foreign exchange.
In the specific operation process, when the entrusting party purchases foreign exchange, it needs to provide relevant documents such as the agency agreement, import contract, and invoice to the bank to handle the foreign exchange purchase procedures. If the agent purchases foreign exchange, in addition to the above documents, it may also need to provide materials such as the authorization letter of the entrusting party. Meanwhile, no matter which party purchases foreign exchange, it must strictly abide by the regulations of foreign exchange administration, such as not making false declarations and not diverting the foreign exchange purchase funds for other uses. Improper operations may face penalties from the foreign exchange administration department and affect the corporate credit.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Generally speaking, the entrusting party purchases foreign exchange more often. After all, the goods are to be used by the entrusting party, and the capital flow is clearer, reducing unnecessary disputes.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
For foreign exchange purchase under agency import, the key lies in how the two parties sign the contract. Whoever is stipulated in the contract to purchase foreign exchange should basically follow the stipulation, but it also cannot violate the requirements of foreign exchange administration.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
I think from the perspective of defining responsibilities, it is better for the entrusting party to purchase foreign exchange. In case of problems, the responsibility can be clearly defined, avoiding the agent being involved in complex disputes.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If the agent purchases foreign exchange, it may need to conduct more investigations on the financial strength and credit of the entrusting party, otherwise there will be risks in the subsequent process.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Before purchasing foreign exchange, it is necessary to communicate well with the bank about the required materials. Whether the entrusting party or the agent purchases foreign exchange, only with complete materials can the procedures be carried out smoothly.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
It is best for both parties to reach an agreement on the matter of foreign exchange purchase before conducting the agency import business, so as to avoid subsequent disputes.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Foreign exchange policies may change. Before purchasing foreign exchange, it is necessary to understand the latest regulations and operate in compliance.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If it involves special agency import models such as cross-border e-commerce, there may be special requirements for foreign exchange purchase, which should be noted.