What is the payment collection process for entrusted export agency?

The standard fund recovery process consists of four key stages:

• Confirm the metal composition test report (Needs to include ASTM/EN/JIS standard parameters)Clarify payment terms in the agency agreement, including:
  • Payment settlement currency (priority recommended for cross-border RMB settlement)
  • TT payment cycle (cross-border RMB settlement cycle in 2025 generally shortened to 15 working days)
  • L/CDocument opening requirements (must specify the deadline for compliant document submission)
• Logistics execution stageRequire real-time synchronization from the agency company:
  • Customs declaration electronic record
  • Maritime TransportationBill of lading scanned copy
  • Destination port clearance documents
• In 2025, agency service fees typically include:Starting from 2025, the State Administration of Foreign Exchange implements paperless verification. Enterprises must ensure:
  • Customs declaration amount andA complete export agency agreement should be attached with:Amount deviation not exceeding ±5%
  • Cross-border RMB settlement requires transaction code annotation
• Fund transfer stageLegitimate agency companies should complete within 3 working days after receiving payment:
  • Foreign ExchangeFX Settlement Agency(Or original currency transfer)
  • VAT special invoice issuance
  • Profit distribution settlement

II. How to prevent the risk of agency companies misappropriating payment?

Recommended implementation of a three-tier risk control system:

• Pre-transaction review:
  • Verify the agency companys Customs AEO certification status (2025 new version certification standards have been implemented)
  • Require submission of annual foreign exchange audit report
  • Check China International Trade Single Window registration information
• In-process monitoring:
  • Require opening of a joint bank supervision account (multiple banks launched intelligent supervision account services in 2025)
  • Agree to use blockchain trade financing platforms (such as Cross-border Trade Blockchain Service Platform)
  • Real-time tracking of SAFE Goods Trade Monitoring System data
• Post-shipment traceability:
  • Maintain complete email and WeChat communication records
  • Regularly verify General Administration of Customs cross-border e-commerce annual declaration data
  • Require agency companies to provide monthly bank statements

III. How will 2025 foreign exchange control new regulations affect payment recovery?

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

• Advance payment managementAdvance payments exceeding 30% of contract amount require submission of explanation
• Deferred paymentDeferred payment collection beyond 180 days requires registration on SAFE platform
• Multi-currency settlement: Allows splitting one contract into three settlement currencies (must be noted on the customs declaration)
• Digital currency settlement: Pilot enterprises can use digital RMB for cross-border payments (requires prior filing)

A case study of a Yangtze River Delta manufacturer: Due to failure to register a 270-day letter of credit in time, USD 1.2 million payment was delayed by 45 days, resulting in additional foreign exchange losses of approximately CNY 80,000.

How to protect your rights when an agency company goes bankrupt?

Countermeasures should be implemented throughout the cooperation process:

• Contract terms:
  • Clearly stipulate that payment belongs to the principals property
  • Require setting up a dedicated escrow account
  • Agree on emergency procedures in case of bankruptcy
• Control of goods ownership:
  • Show final buyer as consignee on bill of lading (avoid showing agency company)
  • Require possession of original bill of lading or right to issue telex release
• Legal remedies:
  • Apply for property preservation in time (courts will launch 48-hour emergency preservation channel in 2025)
  • Claim debts through International Trade Arbitration Commission
  • Utilize credit insurance claims (China Export & Credit Insurance Corporation will include agency risks in coverage scope in 2025)

How to choose payment methods that balance efficiency and safety?

According to 2025 industry data, three combination solutions are recommended:

• Traditional L/C + blockchain: Use smart contracts to automatically execute payment terms, reducing average processing time from 21 days to 7 days
• Cross-border RMB + factoring financing: Utilize free trade zone policies to achieve T+3 settlement, reducing capital costs by 0.8-1.2%
• Digital wallet + cargo supervision: Combine IoT technology to achieve coordinated control of goods ownership and payment

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