Who should use the payment for goods in agency export? Come and give me some ideas!
Solved#Export agent#
Our company has entrusted an agency company to handle the export business. Now the goods have been successfully exported and the payment for goods has arrived. However, we are a bit confused about the use of the payment. I don't know who should use the payment for goods in agency export. Should it be directly given to our principal, or does the agency company also have the right to dispose of it under certain circumstances? I hope friends who are in the know can tell me to avoid potential disputes and affect the cooperative relationship.
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Under normal circumstances, in agency export business, the payment for goods ultimately belongs to the principal. Because the principal is the owner of the goods, bears the costs of goods production, procurement, etc., and the essence of the export business is also to help the principal realize the sales and collection of goods. The main responsibility of the agency company is to assist in handling export-related procedures, such as customs declaration and commodity inspection, and it charges agency service fees.
After the payment for goods reaches the account of the agency company, after deducting its due agency fee and possible expenses advanced on behalf of the principal (such as customs declaration fees, etc., which need to be agreed in advance), it should promptly transfer the remaining amount to the principal. But if the principal authorizes the agency company to use part of the payment for specific purposes during the business, such as paying freight forwarder fees, etc., the agency company can use it as authorized. In short, both parties need to clarify the ownership and usage of the payment for goods in the agency export agreement to avoid disputes.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
It depends on the provisions of the agency contract signed at the beginning. If the contract clearly states that after deducting the agency fee and other expenses, the payment for goods belongs to the principal, then follow the contract. The agency company cannot misappropriate it privately.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Usually, the agency company only plays an auxiliary role. The bulk of the payment for goods definitely belongs to the principal. The agency company only has the right to receive the agency fee. However, if it has advanced expenses, it should give the remaining amount to the principal after deducting the advanced expenses.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If the principal has expenses that need the agency company to help pay during the export process, such as port miscellaneous fees, then within a reasonable range, the agency company can use the payment for goods to pay, and give the rest to the principal.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
The normal process is that the agency company receives the payment for goods, calculates its own expenses, and then transfers the remaining amount to the principal. If it has not been calculated clearly, it cannot be given casually.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Actually, it mainly depends on the communication between the two parties. If the principal agrees, the agency company can also use the payment for goods to pay some necessary expenses related to the export as required.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
In principle, the payment for goods in agency export belongs to the principal. The agency company cannot use it without authorization, unless it has the written authorization of the principal.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
If it is not clear in the agency agreement, it is recommended that the two parties negotiate quickly to determine the rules for the use of the payment for goods, otherwise problems are likely to occur.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, after deducting reasonable expenses such as the agency fee, the remaining payment for goods should be given to the principal. If the agency company wants to use the payment for goods, it must have the permission of the principal.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
After the agency company collects the payment for goods on behalf of the principal, after deducting its own expenses, it should transfer it to the principal as soon as possible. This is the basic operating standard.