Connect & Solve
Trade Q&A
The issue of the payment for foreign exchange in Xuzhou
Resolved
SERVICE
TRACKING NO. 20260226 / 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
I'm from an engineering machinery parts export company in Xuzhou, and I've recently encountered problems with foreign exchange payments. The client sent two payments from Germany, but the bank in Xuzhou keeps saying that the documents are incomplete and cannot be deposited, requiring us to provide contracts, invoices, customs declarations, and other documents. The client is urgently demanding delivery, saying that the payment has already been made. I'd like to ask for advice on this matter. How should the process be standardized to avoid these problems?
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
For enterprises in Xuzhou，to receive foreign exchange payments，it is first necessary to confirm whether your company is listed in the "Trade Foreign Exchange Receipt and Payment Enterprises Directory". This is the prerequisite for all operations. Regarding your current situation，the bank requires supplementary materials that fully comply with the "Three Principles of Business Operation" set by the Foreign Exchange Management Bureau. You need to immediately prepare the following: 1) A complete trade contract with the German client (which must clearly stipulate the payment method，amount，and goods description)，2) Proforma invoices and commercial invoices，3) Customs export goods declaration forms (pre-recorded forms are also acceptable)，4) The "Trade Credit Report Form" required by the Foreign Exchange Management Bureau (if there are prepayments or deferred payments)。
Special reminder: Banks in Xuzhou are stricter in reviewing Class B and Class C enterprises. It is recommended to first check your classification status through the Electronic Port. If there are prepayments exceeding 30 days，you must submit a trade credit report through the "Digital Foreign Exchange Management" platform within 30 days from the actual date of the import/export of goods or the receipt/payment of foreign exchange. Otherwise，it will affect subsequent foreign exchange settlements. All documents must match the goods name，amount，and counterparty exactly. Any slight discrepancies will result in the bank returning the documents for correction.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
From a logistics perspective, the 90% delay in foreign exchange payments is related to the mismatch between document flow and cargo flow. You are currently in a prepayment status of "money received but goods not delivered," which is subject to the strictest bank risk control. It is recommended to immediately implement the following actions:
1. Pack the German client’s payment slips, contracts, and invoices into a "Foreign Exchange Receipt Explanation Letter," clearly indicating the corresponding bill of lading or consignment note number.
2. Even if the client urges delivery, you must adhere to the "confirmation upon receipt of payment" principle: only after the funds are stable in the bank’s pending verification account should you arrange for booking.
3. Select Incoterms 2020’s FCA or FOB clauses to advance the risk transfer point to the warehouse or railway freight station in Xuzhou. This will ensure that the export date on the customs declaration is earlier than the maritime bill of lading date, making it easier to explain to the bank the legitimacy of "receiving payment before shipping goods." If using the China-Europe Express, it is essential to obtain a copy of the railway bill (Railway Bill Copy), which is a key document recognized by banks in the Xuzhou Land Port Area.
4. Finally, it is recommended to activate the bank’s "export receivables financing" product to lock in foreign exchange payments in advance and avoid cash flow disruptions.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The client is urgently demanding delivery of goods and payment via bank transfer, creating a situation where both parties are pressuring you. The core issue here is that you haven’t established a communication mechanism with "document-first prioritization." You must immediately send an official email to the German client—not to apologize, but to demonstrate professionalism. The first sentence of the email should read: "Regarding your payment of XXX EUR, we have confirmed receipt in our bank’s pending account. To comply with China’s foreign exchange regulations and ensure smooth customs clearance, please kindly provide the payment slip with the transaction reference number." At the same time, attach the stamped "Payment Confirmation Letter" and "Estimated Delivery Schedule" to the email, taking the initiative instead of waiting for the client’s request. For local banks in Xuzhou, don’t wait for them to request it—proactively schedule an appointment with the corporate client manager, bringing along the company’s official seal, original contracts, and pre-declared customs documents to complete the "receipt confirmation" process. The key to business negotiations is explaining to clients that China’s strict foreign exchange controls actually ensure transaction security, turning a "problem" into a "professional advantage." Add the following clause to future contracts: "Due to PRC foreign exchange controls, the seller shall deliver goods within 5 working days after the bank confirms receipt of payment into the verifiable account." This not only protects your interests but also sets clear expectations for clients.