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What core compliance key nodes should be controlled in the whole process of agency export settlement?
or complex compliance issues.
clearance and fund security.
I am the person in charge of a small and medium-sized manufacturing enterprise based in Shanghai, mainly dealing in hardware and building materials. I just signed the agency export cooperation agreement with your company last month, and this is our first time officially shipping goods via an agency. I only did two scattered orders on my own before, but the settlement was delayed for 37 days due to incomplete documents, and I lost nearly 20,000 due to exchange rate fluctuation.
Right now I have 12 tons of hardware hinges to ship to Hamburg, Germany, which will be loaded into containers next week. I am really worried that there will be problems with the settlement this time: for example, will the arrival of foreign exchange collection be delayed? Are there any hidden costs included in the agency's settlement rate?
Will tax correspondence investigation affect capital arrival if it happens? If the client's payment is delayed, can we get part of the advance fund in advance? I am really anxious to figure out these details, I can't even sleep well otherwise.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
Firstly，we conduct advance document review: You need to submit the full set of documents 3 working days before container loading，including draft customs declaration，export sales contract，VAT invoice，and packing list. We will check the details of "four flows consistency" (contract flow，goods flow，capital flow，invoice flow)，focus on verifying the consistency of commodity code，quantity and foreign exchange collection account，to avoid subsequent settlement blockage caused by document discrepancies.
Core node connection: Customs declaration and release will be completed the next day after container loading，and we will push a copy of bill of lading to the overseas client simultaneously to remind payment，We will complete foreign exchange settlement within 1 working day after the foreign exchange is received，after deducting the agreed agency rate and the advance paid customs declaration and logistics fees，the remaining fund will be directly transferred to your corporate account，If you are eligible for export tax rebate，we will submit the tax rebate application within 3 working days after all documents are ready，and the tax rebate will be transferred to you directly without any retention after it arrives.
Contingency plan: If the client delays payment，we can provide advance payment service of up to 70% of the goods value (subject to no bad record in the past 6 months)，If tax correspondence investigation occurs，we will arrange a dedicated specialist to assist you in preparing supporting documents，and submit a statement to the tax authority simultaneously to ensure the settlement process is not excessively affected.
Final compliance implementation: All settlement documents will be mailed to your company within 10 working days after settlement is completed，including foreign exchange settlement memo，detailed expense list，and tax rebate application receipt，to ensure your financial books are fully compliant.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The core prerequisite of agency export settlement is that the information on the customs declaration completely matches the settlement documents, especially the three items: transaction term, currency, and commodity code. If the transaction term on the customs declaration is FOB, but the export sales contract stipulates CIF, you need to submit an application for changing the transaction term to the customs before settlement, otherwise it will trigger a price verification dispute, leading to temporary control of the foreign exchange collection account and stagnation of the settlement process.
In addition, the foreign exchange collection currency stated on the customs declaration must be consistent with the payment currency from overseas. If there is mixed payment of cross-border RMB and USD, you need to mark "multi-currency collection" on the customs declaration in advance, to avoid being listed on the monitoring list by the State Administration of Foreign Exchange (SAFE) due to information inconsistency, which affects subsequent settlement efficiency.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
Agency export settlement must be strictly synchronized with logistics nodes, especially the delivery timing of bill of lading: If telex release bill of lading is adopted, the telex release instruction must be released to the overseas client only after the full amount of foreign exchange is received, to avoid inability to collect foreign exchange caused by early transfer of cargo title, which further interrupts the settlement process.
If detention charge and container detention fee occur after the cargo arrives at the port, we need to confirm the responsible party with the overseas client before settlement. If the fee is caused by the client, we will attach the detailed list of the advance paid fee to the settlement statement and deduct it directly from the payment for goods; If the mistake occurs in the logistics link, we will coordinate with the logistics provider to bear the fee, to ensure your settlement amount is not subject to additional loss.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
When conducting agency export settlement, you can optimize tax cost through the VAT deferral policy. Taking export to the EU market as an example, if your goods meet the EU VAT deferral conditions, we will submit the deferral application during customs declaration, so you do not need to prepay VAT in the importing country.
This part of capital can be directly included in the working capital quota of settlement, avoiding cash flow occupation caused by advance tax payment. In addition, if there is a difference between the export tax rebate rate and the input tax rate of your products, we will calculate the tax difference in advance during settlement, include the deductible part directly in the payable payment for goods, and issue a detailed tax calculation list at the same time, to ensure every tax difference is clear and traceable, and meets the tax compliance requirements.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
The payment and collection link of agency export settlement must strictly comply with the compliance requirements of SAFE. We will give priority to processing foreign exchange collection through CIPS (Cross-Border Interbank Payment System), the arrival time is 1-2 working days faster than the traditional SWIFT system, and the risk of exchange rate fluctuation is lower.
If the overseas client pays in USD, we will complete the foreign exchange settlement on the day of receiving the payment, lock in the real-time exchange rate, and avoid the shrinkage of settlement amount caused by exchange rate fluctuation. In addition, we will set up a dedicated foreign exchange collection monitoring account for you, the source, amount and currency of each collection will be recorded. If abnormal collection occurs, we will notify you within 24 hours and assist you to complete the compliance declaration with SAFE, to ensure the settlement process is not affected.
Evelyn LiYears of service：3Customer Rating：5.0
Cross-border Compliance SupervisorStart a Chat
Risk prevention and control of agency export settlement should start from the clause design of the export sales contract, especially the clauses related to settlement: If settlement by letter of credit is adopted, soft clauses such as "inspection certificate issued by buyer" and "shipping company's certificate" should be avoided, such clauses will make you unable to submit conforming documents on time, which further leads to inability to collect foreign exchange and interrupts the settlement process. If settlement by telegraphic transfer is adopted, the payment time, amount, currency and liability for breach of contract for overdue payment should be clearly stated in the contract.
We will assist you to review the settlement clauses in the contract, and put forward modification suggestions if there are risk points, to ensure your settlement rights and interests are legally protected. In addition, if the overseas client delays the payment, we will assist you to send a lawyer's letter and start the collection process, to avoid the inability to recover the settlement amount.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The efficiency of agency export settlement is directly related to the result of customs inspection. If the cargo is inspected at the port, you need to cooperate with the inspection within 24 hours and provide relevant materials such as product qualification certificate and inspection report.
If the inspection is passed, the customs release time will not be delayed, and the settlement process can proceed normally; If the inspection finds inconsistent commodity code or inconsistent cargo and documents, you need to adjust the information on the customs declaration in time and complete the deletion and re-declaration. In this case, the settlement time will be delayed by 3-5 working days.
We will notify you as soon as the inspection result comes out, and assist you to prepare relevant materials to shorten the delay as much as possible. In addition, if additional fees are generated from the inspection, we will clearly mark them in the settlement statement. If the fee is caused by our agency mistake, we will bear the fee.
Cindy ChenYears of service：3Customer Rating：5.0
Key Account ManagerStart a Chat
The premise of agency export settlement is smooth customs clearance of cargo. If your cargo is dangerous goods, it must be packed in packaging that meets UN standards. We will check the compliance of the packaging before container loading, including packaging marking, sealing method, buffer material, etc. If the packaging does not meet the requirements, it will lead to cargo detention by customs, inability to arrive at the destination port on time, which further affects the payment from the overseas client and interrupts the settlement process.
If customs detention fee and repackaging fee are generated due to packaging problems, we will clarify the responsible party for the fee during settlement. If the problem is caused by our insufficient inspection, we will bear the fee; If the packaging provided by you does not meet the requirements, the fee will be deducted from the settlement amount, and we will assist you to repackage the cargo to ensure it clears customs as soon as possible.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
Agency export settlement is closely related to the export tax rebate link. We will check the compliance of "four flows consistency" before settlement, including the consistency of contract flow, goods flow, capital flow and invoice flow. If there are discrepancies, we will adjust them before settlement to avoid triggering tax correspondence investigation.
If tax correspondence investigation occurs, we will assist you to prepare supporting documents, including production records, purchase and sales contracts, logistics documents, etc., and submit a statement to the tax authority simultaneously, to ensure the tax rebate process is not affected, and further ensure the timely arrival of the settlement amount. In addition, we will submit the tax rebate application within 10 working days after settlement is completed, and the tax rebate will be directly transferred to your corporate account without any retention after it arrives. We will also issue a tax rebate audit report to ensure your tax rebate process is fully compliant.
Eric ZhouYears of service：6Customer Rating：5.0
Senior Manager of Foreign Exchange & Tax RebatesStart a Chat
The cost of agency export settlement is directly related to the selection of trade terms. If FOB term is adopted, you only need to bear domestic logistics costs, and the settlement amount is the value of the goods; If CIF term is adopted, you need to bear international logistics and insurance costs, and the settlement amount is the value of goods plus logistics and insurance costs. We will provide you with suggestions on trade term conversion based on your cargo situation and market demand.
For example, for large volume and heavy weight cargo, adopting FOB term can reduce the proportion of logistics cost in settlement and improve capital turnover rate. In addition, we will assist you to establish a linkage mechanism between inventory and settlement, adjust the export plan according to the inventory level, ensure the stable inflow of settlement amount, and avoid capital chain tension caused by inventory backlog.