Connect & Solve
Trade Q&A
How to avoid the risk of receiving payments for exports through customs declaration agents?
Resolved
SERVICE
TRACKING NO. 20260323 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
Trade Challenges?
No import/export license, customs delays,
or complex compliance issues.
or complex compliance issues.
Our Solution
One-stop full-chain agency: ensure efficient
clearance and fund security.
clearance and fund security.
Cost OptimizationUrgent ClearanceGlobal ResourcesCompliant Rebates
Our company recently exported several batches of goods through a customs declaration agent, but the payment for the goods has been collected by the agent all along. Now we're worried that the agent might misappropriate the funds or even abscond with the money. Could you please advise us on how to avoid such risks? Risk? Are there any compliant operating methods to ensure that we can safely receive foreign exchange?
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
From a compliance perspective，you must adhere to the foreign exchange management principle of "who exports，who receives the foreign exchange payments". Under the agency declaration model，the most secure approach is: First，clearly stipulate in the agency agreement that the foreign exchange shall be directly paid by the overseas buyer to your corporate foreign exchange account，with the agent solely responsible for customs declaration and tax refund，Second，if it is necessary to receive the foreign exchange through the agent，the agreement must specify the receipt time，transfer deadline，and breach of contract liability，and retain a complete chain of customs declarations，contracts，and invoices，Third，it is essential to register the receipt of foreign exchange through the National Foreign Exchange Administration's digital foreign exchange management platform to ensure the integration of the three flows of funds，goods，and documents. Particularly，any act of the agent occupying foreign exchange for more than 90 days may trigger foreign exchange compliance risks. It is recommended to separately account for each transaction to avoid fund mixing.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
In terms of operations, you need to strictly bind the logistics nodes and payment collection nodes. It is recommended to adopt the "receiving payment and releasing documents" model: When booking shipping space, set the bill of lading consignee as your company or "TO ORDER" to ensure control of the cargo rights; immediately send the bill of lading copy to the client for payment collection after receiving it, and only release the original bill of lading through the bank or express delivery after the payment is received. For air freight, it is necessary to require prepayment of the freight and set the air waybill consignee as your overseas affiliated company or a reliable freight forwarder to prevent clients from picking up the goods without paying. At the same time, the operating unit on the customs declaration must be your company, and the agent only acts as the customs declaration unit, so that the bank can directly match your account during foreign exchange settlement. Throughout the entire process, the consignor information on the bill of lading, customs declaration, and commercial invoice must be consistent, which is the key to the bank's review.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
During negotiations, you need to incorporate clauses into the contract that give you the initiative in collecting payments. First, add a "non-revocable payment instruction" clause to the agency agreement, requiring the agent to transfer the original currency to your designated account within 24 hours after receiving the foreign exchange. For each day of delay, a late payment penalty of 0.5% will be charged. Second, it is recommended to split large orders into a 30% prepayment and a 70% balance payment. Only after the prepayment is received can production be arranged, and the balance payment will be made upon receipt of the bill of lading copy. This way, even if the agent encounters problems, your losses can be controlled. Third, you can introduce a third-party supervision account, where the foreign exchange is held by a bank or payment institution, and the funds will be automatically released after customs declaration is completed. When communicating with clients, emphasize that this is to "ensure supply chain compliance and fund safety" rather than a lack of trust, and clients will usually understand this. Finally, require the agent to provide foreign exchange account statements every quarter to keep track of the situation.