Agency export,What is the profit settlement process?

Under the current trade system in 2025, the profit settlement for agency exports primarily includes the following key steps:

• Funds pooling phase: After the agency company collects the full payment from overseas, it will deduct the service fee and advance payments (such as customs clearance, logistics, tax refund, etc.) as stipulated in the contract.
• Foreign exchange settlement stage:
  • To be remitted to the designated account via bank TT transfer.
  • Use cross-border RMB settlement (CIPS system).
  • Third-party payment platform transfer (must haveTransboundary PaymentsQualification)
• Profit distribution stage: After conversion at the agreed exchange rate, deduct corporate income tax (if applicable) for final settlement.

How long does the profit settlement cycle usually take?

According to our data statistics from serving over 300 enterprises, the settlement cycle for export agency in 2025 exhibits the following characteristics:

• Standard cycle: 30-60 natural days (calculated from the date of shipment departure)
• Factors affecting the cycle:
  • Customs clearance speed in the destination country (may be extended by 15-30 days in South America/Africa regions)
  • Settlement currency (USD settlements are 3-5 working days faster than EUR)
  • Tax refund process (can be shortened by 7-10 days for manufacturing enterprises)
• Urgent plan: Some agency companies offer prepayment services (requiring a capital cost of 1.5%-3%).

How to Avoid Tax Risks in Profit Settlement?

In 2025, cross-border tax supervision will become stricter. It is recommended to focus on:

• VAT treatment:
  • The agency export is applicable to the tax exemption, credit, and refund policy.
  • Ensure obtaining compliant input invoices.
• Income tax treatment:
  • Domestic profits are subject to a 25% corporate income tax.
  • Profits retained overseas must complete tax filing.
• Cross-border payment voucher: Request the agent to provide the tax payment certificate and settlement slip.

What should I do if there is a delay in profit settlement?

Based on 20 years of practical experience, the following countermeasures are recommended:

• Preventive measures:
  • The contract explicitly stipulates the penalty clause (a daily interest rate of 0.05% is recommended).
  • Require agents to provide bank guarantees
• Contingency plan:
  • Activate the third-party fund supervision account
  • Apply for trade insurance claim (insurance must be purchased in advance)
• Legal remedies: Resolve disputes through mediation by the CCPIT or commercial arbitration.

Which payment method will be the safest in 2025?

Based on the latest banking regulatory policies, three secure settlement methods are recommended:

• Bank Letter of Credit Settlement: Suitable for transactions exceeding $500,000 in a single amount.
• Cross-border RMB Direct Clearing：Save 1.2%-2% on exchange loss
• E-wallet profit-sharing system: Supports real-time transfer (limited to ASEAN countries)

Special Reminder: The "Cross-border Capital Flow Management Measures" effective from January 2025 require electronic customs declarations for transactions exceeding USD 50,000 per single transaction. It is advisable to confirm documentation preparation with your agent in advance.