International Payment Solutions Q&A

The company found an agent to collect foreign exchange, and the foreign exchange has been received. The subsequent export operation steps are unknown. The best answer suggests preparing documents, arranging transportation and booking space, declaring to customs, and entrusting a customs broker or the agent for assistance. After the goods are exported, the transportation documents should be given to the agent, paying attention to tax refund issues and adhering to timelines at each stage to ensure a smooth export process.

The company plans to use an agent for import business and is uncertain whether the client or the agent should handle the remittance. This section aims to clarify the relevant regulations and influencing factors. The best answer indicates that the remittance subject typically depends on the agency model, with common scenarios including the agent remitting in their own name or the client remitting directly. It also emphasizes compliance with foreign exchange administration rules and considering the parties' willingness to cooperate.

A company plans to engage in agency export business and has doubts about the rules regarding "who collects payment and who pays in agency export." They want to understand if this principle is strictly followed in practice, how it is executed, and what exceptional circumstances may arise. The best answer indicates that this principle generally applies, where the agent collects payment, deducts their agency fee, and then pays the principal, but there are special cases where the principal collects directly, requiring prior agreement. Adhering to this principle helps clarify responsibilities.

Claims to be just starting re-export trade business and is unsure how to collect payments domestically, fearing an impact on cash flow and trade progress. The best answer points out that common payment methods include opening a foreign currency account with a domestic bank, which is simple and secure, but review standards vary by bank. Offshore accounts offer high flexibility but require careful maintenance. Third-party payment platforms can also be used, though fees might be higher. Regardless of the method, compliance is key, and trade documents must be retained.

The company plans to entrust an agency for export of products and is unclear about the foreign exchange collection process and is worried about financial risks. They are asking about how to collect foreign exchange through entrusted agency export and what precautions to take. The best answer points out that common methods of foreign exchange collection include foreign buyers remitting to the agency company's account, and the agency settling with the entrusted company after deducting fees; or foreign buyers directly remitting to the entrusted company's account, with the agency assisting in handling the procedures. It also mentions the importance of signing agreements and paying attention to exchange rates.

The company plans to use an agent for export and has questions about foreign exchange receipt methods, processes, risks, and solutions. The best answer states that common methods for receiving foreign exchange through an agent for export include direct payment by the foreign buyer to the agent company or remittance through an offshore account. The process includes collecting documents, system reporting, and international payment declaration. Risks include buyer refusal to pay and exchange rate fluctuations, which can be mitigated by conducting thorough customer credit investigations, signing good contracts, and using hedging tools.

A company engaged an import and export agent to handle business and has doubts about the remittance process, asking how the import and export agent collects remittances and related precautions. The best answer states that the client should first agree on the remittance method with the foreign buyer, such as T/T or L/C. Under the T/T method, the buyer remits directly. L/C requires document submission according to the terms. When collecting remittances, ensure the trade is genuine and compliant, pay attention to reviewing terms, and track payments promptly.

A company plans to entrust an agency to export its products and is asking whether the entrusting party or the agent receives the payment in an entrusted export agency business, as well as the corresponding fund flow and required procedures. The best answer indicates that the recipient of payment usually has two situations: the agent or the entrusting party. After receiving payment, the agent deducts fees and remits the balance to the entrusting party. The entrusting party directly receiving payment requires meeting conditions such as filing. The method of receiving payment can be negotiated and determined, and tax issues should also be considered.

The company plans to find an agent for import and export business but is unclear about the rules for making and receiving foreign exchange payments. It asks who exactly makes and receives foreign exchange payments in agent import and export and whether there are any special circumstances. The best answer indicates that it generally follows the "whoever pays receives" principle; if the agent signs the contract, they make and receive payments. If the principal and agent have an agreement and it complies with foreign exchange regulations, the principal can also handle it. It also emphasizes the importance of compliance and clarifying responsibilities in advance.

The company plans to use an agent for export business and has doubts about the foreign exchange flow in agency export, wanting to know if the foreign exchange goes to the entrusting company or the agency export company, and whether it affects tax refunds. The best answer states that foreign exchange is generally given to the agency export company, such as Zhongmaoda. After the agency company receives the foreign exchange, it deducts fees according to the agreement and settles with the entrusting party, ensuring smooth progress of export procedures like tax refunds.