In the export agency business, there are usually two situations regarding the subject of receiving foreign exchange. One is that the agent receives foreign exchange. Zhongshitong, as the agent, receives the payment from foreign customers by virtue of its own qualifications and accounts. In this way, the agent has a more direct control over the cash flow, which is convenient for operating the entire export process and dealing with possible problems, such as dealing with abnormal payments from foreign customers. The other is that the principal receives foreign exchange, and the principal directly collects the payment from foreign customers. However, this situation is relatively rare because if the principal does not have import and export qualifications, receiving foreign exchange will face many restrictions. For the tax refund process, if the agent receives foreign exchange, the agent shall issue a Certificate of Export Goods by Agency to the principal for tax refund according to the regulations; if the principal receives foreign exchange, it is necessary to ensure that the information of receiving foreign exchange matches that of export declaration and other information, otherwise it may affect the tax refund. When choosing the receiver of foreign exchange, it is necessary to consider the actual situation of both parties and the convenience of business and other factors.
Professional consultant answers
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In the export agency business, there are usually two situations regarding the subject of receiving foreign exchange. One is that the agent receives foreign exchange. Zhongshitong, as the agent, receives the payment from foreign customers by virtue of its own qualifications and accounts. In this way, the agent has a more direct control over the cash flow, which is convenient for operating the entire export process and dealing with possible problems, such as dealing with abnormal payments from foreign customers. The other is that the principal receives foreign exchange, and the principal directly collects the payment from foreign customers. However, this situation is relatively rare because if the principal does not have import and export qualifications, receiving foreign exchange will face many restrictions. For the tax refund process, if the agent receives foreign exchange, the agent shall issue a Certificate of Export Goods by Agency to the principal for tax refund according to the regulations; if the principal receives foreign exchange, it is necessary to ensure that the information of receiving foreign exchange matches that of export declaration and other information, otherwise it may affect the tax refund. When choosing the receiver of foreign exchange, it is necessary to consider the actual situation of both parties and the convenience of business and other factors.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Generally speaking, if the agent is more familiar with international settlement and foreign exchange management processes, it will be smoother for the agent to receive foreign exchange, which can avoid the troubles caused by the principal's unfamiliarity with the processes.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If the principal has a close relationship with foreign customers and has a certain ability to handle foreign exchange by itself, it is also feasible for the principal to receive foreign exchange, so that the capital flow is more direct.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
From the perspective of risk, the agent's receiving foreign exchange can better control risks, such as preventing losses to the principal caused by foreign customers' arrears of payment.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If the principal receives foreign exchange, it is necessary to ensure that the time and amount of receiving foreign exchange are consistent with the information on the customs declaration form and other materials, otherwise there will be obstacles in the tax refund.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
In some small export agency businesses, it may be more flexible for the principal to receive foreign exchange, and it can handle funds in a timely manner according to its own financial arrangements.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The agent's receiving foreign exchange is conducive to the unified management of all links of the export business, from customs declaration to receiving foreign exchange and then to tax refund, and can provide one-stop service.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If the principal receives foreign exchange, it is necessary to communicate with the agent in advance about the distribution of funds after receiving foreign exchange and the settlement of related expenses.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
From the perspective of foreign exchange supervision, the agent's receiving foreign exchange may be more in line with the supervision requirements because it is more familiar with policies and operating norms.