Agency export,How exactly is the flow of funds achieved?

In the agency export model, the flow of funds follows"Overseas buyer → Agency company → Entrusted enterprise"The closed circuit path. specific processes include:

• Overseas buyer to pay the goods to the foreign exchange account designated by the agency
• Completion of foreign exchange sales andcustoms clearanceby matching
• After deducting the agent service fee, the RMB will be settled to the entrusted company through bank transfer.
• involveExport tax refundWhen the tax refund is transferred directly from the tax department to the entrusted company account

What are the options for export collection routes?

According to the latest regulations of the Foreign Exchange Administration, the compliance collection pathway mainly includes:

• Foreign exchange account agency
  • Applicable scenario: No import and export rights
  • Advantages: Complete compliance and easy foreign exchange sales
• Enterprise Offshore Accounts
  • Applicable scenario: enterprises holding foreign companies
  • Note: Full documentation of the Agreement must be provided
• Third Party Payment Institutions
  • Applicable scenario: Small and high frequency cross-border e-commerce transactions
  • Limit: no more than 5 million dollars

What needs special attention in foreign exchange?

Based on our experience serving 300+ enterprises, foreign exchange verification must focus on three key points:

• Time RequirementsComplete verification within 90 days after receiving payment
• Certificate of matchingThe difference between the amount of customs duties and the amount of exchange is not greater than ±5%
• Unusual treatmentThe difference must provide reasonable explanatory documents

Will Exporting Affect Corporate Tax Returns?

Efficiency of tax refunds depends on three key factors:

• Customs declaration information transmission speed (average3-5 working days)
• Foreign exchange settlement completion time (best completed within 30 days after settlement)
• Tax department audit cycle (usually15-20 working days)

The adoption of an electronic agent system can shorten the overall cycle by about40%, and it is recommended to prioritize agents with paperless customs capabilities.

How to Prevent Export Risk?

We advise companies to establishLevel 3 Risk Control Mechanism:

• Prevented Prevention
  • Verify the foreign exchange classification level of the agency (required for Class A enterprises)
  • Confirmation of the transfer account can be consulted in the customs recording system
• Monitoring of the matter.
  • Require the agency to provide real-time water collection documents
  • Regular monitoring of foreign exchange monitoring system data
• Following afterwards
  • Retaining the full agency agreement and proof of funding
  • Establishment of Emergency Response Plan

Frequent question answers.

Q: Can the agency directly pay foreign currency to the client?
A: According to the current foreign exchange policy, RMB must be paid through banks after completing the exchange, and only special supervised regional enterprises can apply for foreign currency transfer.

Q: How many small receipts can be merged?
A: The "centralized foreign exchange collection" operation is permitted, provided that the following conditions are met: under the same contract, accumulated within 30 days, and with the corresponding customs declaration details provided.

Q: What is the inconsistency between receiving currencies and customs currencies?
A: The difference can be normally sold within ±3% according to the actual exchange rate on the day of delivery, and the situation needs to be supplemented beyond the scope.