To whom should the payment for agency export be made? Come and give me some ideas!
Solved#Export agent#
Recently, our company has engaged an agency export company to handle the export business. Now the goods have been successfully exported, and the payment is about to arrive. However, I'm not quite sure to whom this payment for agency export should be made. Should it be made to the company we entrusted with the agency export, or directly to our own company? Are there any risks or anything that requires special attention in this regard? I hope experienced friends can tell me about it. Thank you all!
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Under normal circumstances, there are two common destinations for the payment of agency export. If it is a pure agency mode, that is, the agency company only provides agency services and charges agency fees, then the payment from foreign merchants usually goes to the account of the agency company first. After deducting the corresponding agency fees and advance payments, the agency company pays the remaining amount to the principal company. This is because the agency company has to handle a series of procedures such as customs declaration and foreign exchange collection, and the payment passing through its account facilitates operation and settlement of fees.
In another case, if it is a buyout mode, the agency company purchases goods from the principal at a buyout price and exports them on its own. The payment will be directly made to the agency company, and then the agency company pays the buyout payment to the principal as agreed.
Regardless of the mode, both parties should sign a detailed agency export agreement before cooperation to clarify the payment method, responsibilities of each party, etc., to avoid subsequent disputes.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Usually, it is paid to the agency company. They will handle the subsequent matters according to the agreement. This is more standardized and in line with the general operation process.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
It depends on how your agreement is signed. If there is no special agreement, according to the convention, it is paid to the agency company, and then they will settle with you.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If issues such as tax rebates are involved, paying to the agency company will facilitate them to handle relevant procedures, and then transfer it to you.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
There are also cases where it is directly paid to the principal company, but this may require the agency company to communicate and coordinate with the foreign merchant in advance.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The payment recipient mainly depends on the terms regarding payment in the agency export contract. You need to carefully review the contract.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If you are worried about risks, it is recommended to follow industry practices and pay to the agency company first. After all, they are more familiar with the process.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Sometimes, in order to simplify the process, under certain conditions, the foreign merchant can directly pay to the principal company, but it is necessary to communicate with the agency.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Generally, it is paid to the agency company, which is convenient for them to control the entire export business process and financial accounting.