A company intends to import goods through an agent and has doubts about the principle of "whoever imports, whoever remits". They are asking whether the client or the agent should remit payment in agency imports, the risks of improper operation, and the correct remittance operation. The best answer points out that whoever imports in whose name remits, improper operation carries regulatory risks, and the import subject must be determined first, then apply to the bank for remittance according to requirements.
Does entrusted agency import necessarily require remittance? Come and find out!
Resolved
Our company plans to entrust an agency to import a batch of goods and is not quite clear whether remittance is required during the process of entrusted agency import. I would like to ask everyone, is remittance mandatory in the case of entrusted agency import? If remittance is required, what is the specific process? I hope someone knowledgeable can help answer, thank you!
Trade Expert Insights Answers
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
Entrusted agency import typically requires remittance. Since the goods are imported from abroad, payment needs to be made to overseas suppliers.
The general remittance process is as follows: First, the agent and the principal sign a detailed agency import agreement, clarifying the rights and obligations of both parties, including matters related to remittance. Then, the agent, with documents such as the import contract, invoice, and bill of lading, applies to the bank for remittance. After the bank reviews the documents and finds them to be in order, it will pay the corresponding amount to the overseas supplier in accordance with foreign exchange management regulations. However, there are special circumstances, such as other settlement arrangements between the principal and the overseas supplier, or if the goods fall under specific duty-free projects, which may not require payment through conventional remittance methods. However, such situations are relatively rare, and most entrusted agency import businesses involve remittance operations.
During the operation, it is crucial to strictly abide by national foreign exchange management policies to ensure that remittance is legal and compliant.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Generally, remittance is required, as goods are imported from abroad and payment must be made to the foreign party. Remittance is the process of paying the overseas seller through the bank; simply prepare the documents as required by the bank.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Most entrusted agency imports require remittance; otherwise, how would foreign suppliers receive payment and ship the goods? However, if the principal has previously agreed with the supplier on other settlement methods, it might not go through regular remittance.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
Typically, remittance is required. The process mainly involves preparing documents like contracts and invoices and going to the bank. However, under certain special trade methods, remittance might not be necessary, depending on the specific situation.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
Remittance is definitely required; otherwise, how can the import business be completed? When remitting, ensure that the documents are complete and comply with foreign exchange management regulations, otherwise the bank may not process it.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Generally, remittance is needed, as it is the common way to pay for imported goods. However, if there are special agreements, such as exchanging goods for goods, normal remittance might not be necessary.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Most cases of entrusted agency import require remittance. Operate according to the requirements of the bank and foreign exchange management, and prepare all import-related documents to complete the process.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
Normally, remittance is required to pay the overseas supplier for the goods. However, if the goods being imported through entrusted agency are for donation or have other special nature, remittance might not be required.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Most entrusted agency imports require remittance. Before remitting, ensure that the relevant documents are authentic and valid, and follow the prescribed procedures; otherwise, there may be problems.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
Usually, remittance is required, which is paying the overseas merchant through the bank. However, if special economic transactions are involved, other settlement methods cannot be ruled out.