1.What is the payment collection process for entrusted export agency?

The standard fund recovery process consists of four key stages:

• Confirmthemetalcompositiontestreport(NeedstoincludeASTM/EN/JISstandardparameters):Clarifythepaymenttermsintheagencyagreement,including:
  • Paymentsettlementcurrency(cross-borderRMBsettlementisrecommendedasthepriorityoption)
  • TTpaymentcycle(in2025,thecross-borderRMBsettlementcyclewillgenerallybeshortenedto15workingdays)
  • OpeningRequirements(SubjecttoAgreedPeriodforPresentationofCompliantDocuments)
• Logistics execution stageRequest the agency to synchronize in real time:
  • Electronicrecordofcustomsdeclaration
  • BillofLading(B/L)scannedcopy
  • Customsclearancedocumentsfortheportofdestination
• Foreign exchange verification stage: Starting from 2025,the State Administration of Foreign Exchange promotes "paperless verification," and enterprises need to ensure:
  • CustomsdeclarationamountandTheamountdiscrepancyshallnotexceed±5%.
  • Cross-borderRMBsettlementrequiresthetransactioncodetobenoted.
• Fund transfer stageA formal agency company should complete the following within 3 working days after receiving the payment:
  • ForeignExchange(ortransferinoriginalcurrency)
  • IssuanceofSpecialValue-AddedTaxInvoice
  • Profitdistributionsettlement

II.How to Prevent the Risk of Agency Companies Misappropriating Payment Funds?

It is recommended to adopt a three-tier risk prevention and control system:

• Pre-review:
  • CheckthecustomsAEOcertificationstatusoftheinspectionagency(thenewversionofthecertificationstandardhasbeenimplementedin2025).
  • Pleaseprovidetheannualforeignexchangerevenueandexpenditureauditreport.
  • PleaseverifythefilinginformationonChina’sInternationalTradeSingleWindow.
• In-process monitoring:
  • Itisrequiredtoopenajointlymanagedbankaccount(in2025,manybankslaunchedsmartsupervisionaccountservices).
  • Agreetouseblockchaintradefinanceplatforms(suchascross-bordertradeblockchainserviceplatforms).
  • Real-timetrackingoftheStateAdministrationofForeignExchange’sgoodstrademonitoringsystemdata
• Post-shipment traceability:
  • RetaincompleteemailandWeChatcommunicationrecords.
  • Regularlyverifytheannualdeclarationdataforcross-bordere-commercefromtheGeneralAdministrationofCustoms.
  • Requesttheagencytoprovidemonthlybankstatements.

III.What impact will the new foreign exchange control regulations in 2025 have on the recovery of loans?

According to the latest foreign exchange management policy (Hui Fa [2025] No.6),enterprises should pay special attention to:

• AdvancePaymentManagement:Advancepaymentsexceeding30%ofthecontractamountrequiresubmissionofajustificationstatement.
• Deferredpaymentcollection：Extensionsofpaymenttermsexceeding180daysmustberegisteredontheSAFEplatform.
• Multi-currencysettlement:Allowsplittingasinglecontractintothreesettlementcurrencies(mustbenotedonthecustomsdeclarationform).
• Digitalcurrencysettlement:PilotenterprisescanusedigitalRMBforcross-borderpayments(priorregistrationisrequired).

Case Study of a Yangtze River Delta Manufacturing Enterprise: Due to the failure to register a 270-day letter of credit in a timely manner,the payment of $1.2 million was delayed by 45 days,resulting in additional foreign exchange losses of approximately $8,000.

4.How to Protect Your Rights When the Agency Goes Bankrupt?

Countermeasures should be implemented throughout the entire cooperation process:

• ContractTerms:
  • Itisexplicitlyagreedthatthepaymentbelongstothepropertyoftheprincipal.
  • Requesttoestablishadedicatedregulatoryaccount.
  • Agreedemergencyhandlingproceduresintheeventofbankruptcy
• Property right control:
  • Theconsigneeonthebillofladingshouldshowtheendbuyer(avoiddisplayingtheagentcompany).
  • Originalbillofladingortelexreleaseauthorizationmustbeobtained.
• Legal remedy:
  • Applyforpropertypreservationinatimelymanner(thecourtlauncheda48-houremergencypreservationchannelin2025).
  • ToclaimthedebtthroughtheInternationalTradeArbitrationCommission.
  • Usecreditinsuranceclaims(ChinaExport&CreditInsuranceCorporationwillincluderiskagencyinitscoveragescopeby2025).

5.How to choose a payment method that balances both efficiency and security?

According to the industry data for 2025,we recommend three combination solutions:

• TraditionalLetterofCredit+Blockchain:Automaticallyexecutepaymenttermsthroughsmartcontracts,reducingtheaverageprocessingtimefrom21daysto7days.
• Cross-borderRMB+factoringfinancing:UtilizingthefreetradezonepolicytoachieveT+3settlement,reducingcapitalcostsby0.8-1.2%.
• DigitalWallet+CargoMonitoring:ByintegratingIoTtechnology,achievesynchronizedcontrolofcargoownershipandpayment.

A Shenzhen-based electronics company adopted the "30% advance payment + 70% payment against copy of bill of lading" method,covering risks with bank payment guarantees,reducing its annual bad debt rate from 1.7% to 0.3%.