In agency export business, who collects and who pays?

In agency export business, who collects and who pays? agency export, collection, payment The company intends to engage in agency export business and has doubts about who collects and pays in agency export. It wants to understand whether the agent or the principal collects and pays in actual operations. The best answer states that agency export usually follows this principle, with the agent generally collecting payments, deducting fees, and then remitting to the principal. Payments depend on procurement situations; if the agent procures, the agent pays, and if the principal procures, the principal pays. Agency|Export#Export Business|Business split-faq#276323#question-reply# In agency export business, the principle of "who collects and who pays in agency export" is generally followed. In most cases, the agent signs the export contract and declares customs in their own name, thus being responsible for collecting payments. After receiving funds from the foreign buyer, the agent deducts agency fees and other related expenses, and then remits the remaining amount to the principal. This is because the agent handles a series of export procedures, including foreign exchange collection and verification, making it more convenient and compliant for them to collect payments. Concurrently, for payments such as procurement costs, if the agent is responsible for procurement, the agent will pay the supplier; if the principal procures independently and the agent merely assists with export procedures, then the principal will handle the payment for procurement. This arrangement clearly defines the responsibilities and fund flows of each party, avoiding financial confusion. For example, Zhongmaoda, as the agent, signs a contract with a foreign customer to export goods. After receiving payment, it deducts the agency fee and remits the balance to the principal. If procurement payments are involved, they are handled according to the above principle. #split-faq#276324#question-reply# In agency export, if the agency contract stipulates that the agent is responsible for collection, then after collection, the funds will be distributed to the principal as agreed. Regarding payments, such as the payment to the factory for goods, if the agent is responsible for procurement, the agent will pay. However, if the principal procures independently, then the payment is naturally the principal's responsibility. #split-faq#276325#question-reply# Typically, the agent collects payments because most export-related procedures are handled under the agent's name. After collecting payment, the principal is paid according to the agreement. For payments, such as transportation fees, if the agent is responsible for finding the shipping company, the agent will pay. #split-faq#276326#question-reply# From a procedural standpoint, the agent receives foreign exchange and then converts it to RMB for the principal. For payments, fees for services uniformly arranged by the agent, such as customs declaration fees, will be paid by the agent; those arranged by the principal will be paid by the principal. #split-faq#276327#question-reply# In agency export business, the agent usually collects payments, as the agent primarily leads the export operations. For payments, if the agent procures the goods, the agent pays for them; if the principal procures, the principal pays. #split-faq#276328#question-reply# Generally, the agent collects payments, which facilitates foreign exchange management and verification. For payments, fees for services handled by the agent will be paid by the agent, and fees for services handled by the principal will be paid by the principal. #split-faq#276329#question-reply# During agency export, after the agent receives the payment, they settle with the principal. Regarding payment issues, if the agent is responsible for a certain matter, such as booking fees, the agent will pay; if the principal handles it independently, the principal will pay. #split-faq#276330#question-reply# By convention, the agent collects payments and then settles with the principal after collection. For payments, such as fees to the freight forwarder, if the agent found the freight forwarder, the agent pays; if the principal found them, the principal pays. #split-faq#276331#question-reply# In most agency export cases, the agent collects payments and then distributes them to the principal as agreed. For payments, fees that fall within the scope of the agency business will be paid by the agent, and fees related to the principal's own business will be paid by the principal.