IV. Summary and EnlightenmentA complete export agency agreement should be attached with:Violating Foreign Exchange Management RegulationsExport DrawbackAccording to the Regulations of the Peoples Republic of China on Foreign Exchange Administration, the foreign exchange earnings from goods trade must match the actual customs declaration amount.foreign tradeIf the foreign exchange earnings and customs declaration amount of an enterprise do not match, it may be regarded as non - compliant by the foreign exchange administration and face penalties such as fines or even suspension of foreign exchange business.

I. Regulatory and Compliance Risks

1. Violation of Foreign Exchange Management Regulations
   According to the Regulations of the Peoples Republic of China on Foreign Exchange Administration, the foreign exchange earnings from goods trade must match the actual declared customs value.
   If a companys foreign exchange earnings do not match the declared customs value, it may be regarded as non - compliant by the State Administration of Foreign Exchange and face penalties such as fines or even suspension of foreign exchange business.
2. Unable to handle export tax rebates
   Export tax rebates are an important source of revenue for foreign trade enterprises. If the goods are not declared for customs clearance legally, the enterprise will not be able to provide legal customs declaration documents and thus cannot apply for export tax rebates.
   Operating in this way for a long time may lead to key inspections by the tax department.
3. Suspected of tax evasion
   If the foreign exchange receipts are not declared and written off legally, it may be regarded as tax evasion by the tax authorities.
   Once this mode of operation is verified, the enterprise will face huge fines, and in serious cases, criminal liability may be pursued.

II. Business - level Impacts

1. Difficult to explain the capital flow
   Foreign exchange receipts without customs declaration records may be difficult to reasonably explain in the enterprises accounts, affecting the overall financial transparency.
   For enterprises that need financing or review, this kind of operation may reduce the trust of banks and investment institutions.
2. Decrease in customer trust
   Customers may request to view legal customs declaration documents. If they cannot be provided, it may affect the customers trust in the enterprise and thus the long - term cooperative relationship.
3. Normal business is affected incidentally
   If the behavior of only receiving foreign exchange without customs declaration is investigated, the enterprises normal business may also be included in the scope of investigation, disrupting the entire operation chain.

III. Risk Avoidance and Suggestions

1. Adjust business operations to ensure compliance
   Each foreign exchange receipt should correspond to legal customs declaration documents to ensure the correspondence between the capital flow and the goods flow.
   If there are multiple factories producing similar products, it is necessary to clarify the flow of goods to ensure consistency with customer and customs declaration data.
2. Optimize internal management to avoid inspection risks
   • Unified management of procurement and sales: Establish clear procurement, production and sales records to ensure that every transaction is traceable.
   • Clarify the exchange cost and income distribution: When adjusting the business customs declaration amount, it is necessary to ensure that it does not affect the calculation of export tax rebates.
3. Use professional services to reduce risks
   • Foreign trade agency company: For enterprises unfamiliar with the customs declaration process, professional foreign trade agency companies can be used to assist in completing legal customs declaration.
   • Third - party audit and consultation: Regularly audit the enterprises foreign trade operations to ensure that every foreign exchange receipt and customs declaration are compliant.

IV. Summary and Insights

Receiving foreign exchange only without customs declaration is not only illegal but also has a serious impact on the enterprises financial management and business reputation. By choosing a professional service company, the enterprise can ensure that every foreign exchange receipt is supported by legal customs declaration documents, avoid legal and tax risks, and improve financial transparency. At the same time, the agency company can also optimize internal management, provide professional consultation, and help the enterprise establish a stable foreign trade operation system.Export RepresentationWhy does receiving foreign exchange only without customs declaration put enterprises in a difficult situation? | Shanghai Import/Export Agent