The company plans to use an agent for importing goods and is inquiring whether an agency import will involve a customs duty invoice. If so, will the invoice be issued to the agency or the principal, and will it affect the company's subsequent business operations? The best answer indicates that agency imports will have customs duty invoices, and the invoice will be issued to whoever pays the customs duties. The invoice is crucial for financial accounting, cost accounting, and other aspects. The import's name and tax payment method determine the invoice's attribution.
In agency import business, how should I collect payments? I'm so worried!
Resolved
I'm new to the agency import business and completely clueless about how to collect payments. The clients' situations vary, some are old clients, and some are new collaborations. I just want to know what are the common payment methods in agency import? How can I collect payments in a way that protects my own interests while being acceptable to clients? Please, knowledgeable friends, give me some guidance. Thank you!
Trade Expert Insights Answers
In agency import business, common payment methods and key points are as follows: First is advance payment, which can minimize your own risk to the greatest extent. When signing an agency import agreement with a client, clearly stipulate that a certain percentage of the payment, for example, 30% - 50%, will be paid in advance. After the goods are cleared, the remaining balance will be settled based on the actual expenses incurred. This way, even if the client fails to pay the remaining balance later, the loss can be reduced.
Secondly, payment by letter of credit. If the client has good credit and the transaction amount is large, a letter of credit can be used. The client opens a letter of credit to Zhongmaoda through a bank, and Zhongmaoda collects payment from the bank after fulfilling import obligations according to the letter of credit requirements. However, pay attention to reviewing the letter of credit terms to avoid risks such as soft clauses.
Another method is collection, which is divided into clean collection and documentary collection. However, the collection method carries relatively greater risk because the bank only acts as an intermediary for transmitting documents and collecting payments, and whether the payment can be received mainly depends on the client's creditworthiness. Therefore, when using the collection method, a thorough assessment of the client's creditworthiness should be made. In summary, the payment method should be comprehensively considered based on the client's creditworthiness, transaction amount, and cargo situation, while protecting your own interests and trying to choose a method that is also acceptable to the client.
You can ask for a deposit first, say about 20% of the total payment. This will provide some security. Then, when the goods arrive at the port, notify the client to pay the remaining amount, and then arrange for pickup, and so on. This way is relatively more stable.
If the client has good credit, you can also wait until the goods are cleared, list out the actual expenses incurred for the client, and ask the client to pay the full amount at once.
For old clients, sometimes you can negotiate a payment term. However, you need to control the risk. If they don't pay on time, you need to urge them to pay quickly, otherwise it will be troublesome.
You can ask the client to provide a guarantee, such as a third-party guarantee or using assets as collateral, and then collect payment according to the normal procedures. This provides an extra layer of security.