A company has hubs to export and wants to understand agency customs declaration fees, worrying about being overcharged. They inquire about general fees, potential hidden fees, and influencing factors. The best answer states that there are no fixed standards for fees, which are influenced by the customs broker's services, cargo complexity, region, etc. A simple customs declaration agency fee of 800-1500 yuan is common. Reputable companies have no hidden fees. It is recommended to partner with a company with good qualifications.
Who should the payment for agency export be made out to? Please give me some advice!
Resolved
Our company recently engaged an agency export company to assist with export business. The goods have now been successfully exported and the payment is expected to arrive soon. However, I'm not entirely clear who this agency export payment should be made out to. Should it be paid to the company we commissioned for agency export, or directly to our own company? Are there any risks or special points to pay attention to? I hope experienced friends can share their insights. Thank you all!
Trade Expert Insights Answers
Generally, there are two common ways for agency export payments to be handled. In a pure agency model, where the agency company only provides agency services and charges a fee, the foreign buyer's payment is typically first made to the agency company's account. After the agency company deducts the corresponding agency fees and any advanced costs, the remaining funds are paid to the client company. This is because the agency company handles a series of procedures such as customs declaration and foreign exchange collection, and having the payment pass through their account facilitates operations and cost settlement.
In another scenario, if it's a buy-out model, where the agency company purchases goods from the client company at a buy-out price and then exports them independently, the payment will be made directly to the agency company, who will then pay the client company the buy-out price as agreed.
Regardless of the model, both parties should sign a detailed agency export agreement before cooperation, clarifying the payment methods, responsibilities of each party, etc., to avoid subsequent disputes.
Typically, it's paid to the agency company. They will handle subsequent matters according to the agreement, which is more standardized and aligns with general operating procedures.
It depends on how you've structured your agreement. If there's no special provision, the convention is to pay the agency company, and they will settle with you afterward.
If tax refunds or similar issues are involved, paying the agency company will make it easier for them to handle the relevant procedures and then transfer it to you.
There are also cases where payments are made directly to the client company, but this might require the agency company to communicate and coordinate with the foreign buyer in advance.
The payment recipient primarily depends on the clauses regarding payment collection in the agency export contract. You need to carefully review the contract.
If you're concerned about risks, it's advisable to follow industry practice and pay the agency company first, as they are more familiar with the process.
Sometimes, to simplify the process, the foreign buyer can be allowed to pay the client company directly under certain conditions, but this needs to be communicated with the agency.
Generally, paying the agency company allows them to better manage the entire export business process and financial accounting.