Who should pay for the agency - imported goods?
Solved#Import agent#
I found an agency company to help import goods. Now it has come to the stage of paying for the goods, and I have a disagreement with the agency company on the issue of payment for the goods. I think that since it is an agency import, the agency company should pay the goods to the foreign supplier, and then I will settle with the agency company. But the agency company said that according to the usual practice, I should pay directly. I'm not sure about the regulations in this regard and want to ask everyone who should pay for the agency - imported goods? Is there any basis?
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
There is no absolutely fixed model for the payment subject of agency - imported goods. Usually, it is clearly stipulated by the principal and the agent in the agency - import agreement.
If the agreement stipulates that the agency company advances the payment for the goods, then the agency company needs to pay the foreign supplier, and then settle with you. In this case, the agency company bears the financial pressure and certain risks, and may charge a higher agency fee.
If it is agreed that the principal pays the payment for the goods directly, the agency company is mainly responsible for the import process operation, and the principal directly connects with the foreign supplier for payment. In this way, the risk of the agency company is relatively small. So, the key is to look at the terms of the agreement you signed before and execute according to the agreement. If the agreement is not clear, the two parties should reach an agreement through consultation as soon as possible to avoid disputes.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Generally speaking, if the agency company is strong and has sufficient capital turnover, it may agree to advance the payment for the goods, but it will consider the risks and have corresponding safeguard measures. If the principal has sufficient funds, paying the payment for the goods directly can reduce intermediate links and is also quite common.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In actual operation, in some cases, the agency company pays part of the payment for the goods as a deposit first, and the rest is paid by the principal. This is also a flexible way, depending on the negotiation between the two parties.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
From the perspective of risk, it is more beneficial for the principal if the agency company pays for the goods, which can ensure that the goods are imported as required. But the agency company will evaluate the qualifications of the principal to control risks.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the amount of imported goods is large, the agency company may not be willing to bear the pressure of paying for the goods alone and will require the principal to participate in the payment or provide a guarantee.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If the principal and the foreign supplier already have a cooperation foundation, in order to maintain the cooperative relationship, it is more likely that the principal pays the payment for the goods directly, and the agency is only responsible for handling the procedures.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
There are also cases determined according to trade terms. For example, under the EXW term, the principal may need to participate in the payment process for the goods earlier.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Sometimes it depends on the profit model of the agency contract. If the agency fee is low, the agency company may not be willing to pay for the goods and will require the principal to pay.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
It also depends on industry habits. Different industries of imported products may have different usual practices in the payment for goods.