Who is generally paid for foreign exchange in agency export?

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Our company plans to use an agent for export business and is currently unclear about the foreign exchange aspect of agency export. We would like to know which company generally receives the foreign exchange during the agency export process? Is it directly given to us, the entrusting company, or to the agency export company? Will this foreign exchange flow affect tax refunds and related operations? We hope that knowledgeable friends can provide a detailed explanation. Thank you!
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Daniel Kim
Daniel KimYears of service：4Customer Rating：5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

In agency export business, foreign exchange is generally paid to the agency export company, such as Zhongmaoda. This is because the agency company is responsible for the entire export process, including customs declaration and foreign exchange settlement. After the foreign exchange enters the agency company's account, the agency company will, according to the agency agreement signed with the entrusting party, deduct relevant agency fees and other expenses, and then settle the remaining amount in RMB to the entrusting export company.

This foreign exchange flow has an impact on the tax refund process. After the agency company receives the foreign exchange and completes export customs declaration and other procedures, it will collect and organize relevant documents for handling export tax refunds. If the foreign exchange is directly given to the entrusting company, it will lead to a discrepancy between the subject applying for tax refund and the subject receiving foreign exchange, which may cause tax refund risks, affect the progress of tax refunds, or even prevent tax refunds. Therefore, following the conventional foreign exchange flow and receiving foreign exchange through the agency company can ensure the smooth progress of export business and tax refund procedures.

References: Shocking! Purchase Tax Can Be Refunded, Did You Know?
Olivia Liu
Olivia LiuYears of service：6Customer Rating：5.0

Foreign Exchange Risk ManagerStart a Chat

Under normal circumstances, foreign exchange is given to the agency export company, which facilitates the operation of the entire export process. The agency company then settles with the entrusting party, reducing many troubles.

Robert Tan
Robert TanYears of service：5Customer Rating：5.0

International Market Development AdvisorStart a Chat

It is more common for foreign exchange to be given to the agency export company, as this leads to smoother connections in customs declaration, verification, and other aspects, and complies with general business operational norms.

Michael Zhang
Michael ZhangYears of service：10Customer Rating：5.0

Customs Clearance SpecialistStart a Chat

Generally, the agency export company receives foreign exchange, as the agency company is responsible for handling a series of export matters, including liaising with foreign clients, and then settles with the entrusting party after receiving payment.

Kevin Huang
Kevin HuangYears of service：3Customer Rating：5.0

E-Commerce Export AdvisorStart a Chat

In agency export, foreign exchange is mostly given to the agency company, mainly for reasons of business continuity and compliance, which can ensure the orderly progress of export links and facilitate financial accounting.

David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

Most of the time, foreign exchange is given to the agency export company, which handles it centrally. This makes it easier to deal with various issues during the export process and is also conducive to fund management.

Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

Foreign exchange in agency export is generally given to the agency export company for its unified arrangement of various links in export business, and then settled with the entrusting party according to the agreement.

Thomas Li
Thomas LiYears of service：7Customer Rating：5.0

Import Licensing AdvisorStart a Chat

Foreign exchange typically flows into the account of the agency export company, which is a common practice in the industry. This facilitates subsequent operations for the agency company and also helps in standardized management.

Richard Wu
Richard WuYears of service：8Customer Rating：5.0

Global Trade Operations ExpertStart a Chat

In agency export, foreign exchange is generally given to the agency company to facilitate the completion of subsequent business processes, and then settled with the entrusting company.

Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

Foreign exchange for agency export is generally given to the agency export company. After receiving the foreign exchange, the agency company handles it according to the agreement to ensure the smooth progress of business.

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