Who should the payment for goods under agency export be transferred to? Come and discuss together!
Solved#Export agent#
Our company has recently engaged an agency company to conduct export business. Now the goods have been successfully exported and the payment for goods is about to be received. However, we have some doubts about the recipient of the payment for goods. To whom should the payment for goods under agency export be transferred? Should it be directly transferred to us, the consignor, or to the agency company? Are there any regulations or points that need attention in this regard? We hope that experienced friends can help answer this question. Thank you!
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally speaking, the flow direction of the payment for goods under agency export needs to be determined according to the consignment agency agreement. There are two common situations: First, the payment is directly transferred to the consignor. If the agency company only provides agency services and charges a fixed agency fee, after the completion of export customs declaration and other procedures, the foreign customer will directly pay the payment for goods to the consignor. This way enables the consignor to quickly recover the capital and is also convenient for capital management. The other situation is that the payment is transferred to the agency company. After receiving the payment for goods, the agency company will deduct the agency fee and the advanced payment, and then transfer the remaining amount to the consignor. When the agency company needs to bear the foreign exchange collection risk or when the tax rebate is handled by the agency company, this method is often adopted. The key to choosing which method lies in clearly defining the rights, obligations and payment process of the goods in the agreement by both parties to avoid subsequent disputes.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Usually, it is more common to transfer the payment to the agency company because the agency company is responsible for handling a series of export-related matters, including tax rebate, etc. It is convenient to operate the process by transferring the payment to them and then transferring it to the consignor.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If you and the agency company have agreed that they are responsible for handling all export matters, then the payment for goods should be transferred to the agency company, and they will settle with you after handling the relevant matters.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If the consignor is in urgent need of funds and the assessment of the foreign exchange collection risk is low, it can be negotiated to transfer the payment directly to the consignor so that the capital turnover is faster.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If the payment is transferred to the agency company, the agency company can handle some cost issues more flexibly. For example, it is more convenient to deduct the customs declaration fees advanced by them from the payment for goods.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Actually, it depends on the degree of trust between the two parties. If the consignor trusts the agency company very much, it is okay to transfer the payment for goods to the agency company, and the agency company just needs to transfer the money according to the agreement.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If some complex trade terms are involved, such as requiring the agency company to handle some subsequent quality disputes, etc., it is convenient to transfer the payment for goods to the agency company for them to handle the relevant matters.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If the consignor has the ability to handle matters such as tax rebate by itself, it can also require the payment for goods to be directly transferred to itself to reduce intermediate links.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
It is very important for both parties to clearly write down the payment method of the goods in the agency agreement. If it is implemented according to the agreement, problems are less likely to occur.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Sometimes, for the convenience of foreign exchange management, the payment for goods is first transferred to the agency company, and after the agency company converts the foreign exchange according to the regulations, it will give the consignor RMB. This situation is also common.