In the agency export business, the subject of payment collection is generally determined through negotiation between the principal and the agent. There are two common situations. One is that the agent collects the payment. After receiving the payment from the foreign merchant, the agent deducts relevant amounts such as agency fees and then pays the remaining amount to the principal. In this way, the agent needs to transfer the payment promptly in strict accordance with the contract. If the operation is improper, the principal may face the risk of having its funds occupied. The other is that the principal collects the payment directly, but this may require the consent of the foreign merchant. Collecting the payment directly can reduce intermediate links and risks.
Regarding the tax refund process, if the agent collects the payment, the agent needs to issue a Certificate of Agency Export Goods to the principal as required, and the principal shall handle the tax refund accordingly; if the principal collects the payment directly, the principal can directly declare the tax refund according to the normal process. In short, both parties need to clarify the payment collection method before cooperation to protect their own rights and interests.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
In the agency export business, the subject of payment collection is generally determined through negotiation between the principal and the agent. There are two common situations. One is that the agent collects the payment. After receiving the payment from the foreign merchant, the agent deducts relevant amounts such as agency fees and then pays the remaining amount to the principal. In this way, the agent needs to transfer the payment promptly in strict accordance with the contract. If the operation is improper, the principal may face the risk of having its funds occupied. The other is that the principal collects the payment directly, but this may require the consent of the foreign merchant. Collecting the payment directly can reduce intermediate links and risks.
Regarding the tax refund process, if the agent collects the payment, the agent needs to issue a Certificate of Agency Export Goods to the principal as required, and the principal shall handle the tax refund accordingly; if the principal collects the payment directly, the principal can directly declare the tax refund according to the normal process. In short, both parties need to clarify the payment collection method before cooperation to protect their own rights and interests.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Generally, if the principal has a good reputation with the foreign merchant and the foreign merchant agrees, it is better for the principal to collect the payment directly. The capital flow is fast, and it can reduce the problems that may occur in intermediate links.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the agent collects the payment, it can better control the capital flow and is also convenient for handling matters such as fee deductions. However, it is necessary to find a reliable agent, otherwise there may be capital risks.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
From the perspective of tax refunds, as long as the process is compliant, whoever collects the payment can get a normal tax refund. The key is to prepare all the necessary materials.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the principal collects the payment itself, more efforts should be made in communicating with the foreign merchant to ensure that the foreign merchant cooperates and makes direct payments.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the agent collects the payment, attention should be paid to the financial situation of the agent to prevent financial crises from affecting the transfer of payments.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
For enterprises newly engaged in the agency export business, it is recommended to first understand in detail the clauses regarding payment collection in the agency agreement before making a decision.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Sometimes, in order to protect the interests of both parties, a joint account can also be set up to collect payments and jointly supervise the funds.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
No matter who collects the payment, the rights and obligations of each party must be clearly defined in the contract to avoid disputes in the later stage.