Why would an export agency company withhold my payment?

According to the 2025 latest international trade dispute case database, payment withholding typically stems from the following reasons:

• Contract performance disputes: Documentation defects (such as HS code errors), delivery delays, quality disputes
• fund chain rupture risks: Agency companies misusing funds leading to payment difficulties
• Policy compliance issues:Export tax refundDisputes or foreign exchange control violations
• Malicious breach of contract: Exploiting information asymmetry to embezzle payments

What emergency measures should be taken when encountering payment withholding?

Recommended crisis handling steps:

• Step 1: Contract tracing
  • Immediately retrieve the original agency agreement
  • Verify payment terms and breach of contract liability clauses
• Step 2: Evidence preservation
  • Keep original bills of lading, customs declarations, and VAT invoices
  • Collect electronic evidence such as email correspondence and chat records
• Step 3: Legal remedies
  • Apply to the China Council for the Promotion of International Trade for commercial mediation.
  • Engage a professional international lawyer to send a lawyers letter

How to recover withheld payments through legal channels?

After the revision of the International Trade Law in 2025, it is recommended to prioritize the following approaches:

• Arbitration procedures: Choose CIETAC (China International Economic and Trade Arbitration Commission) for arbitration
• Cross-border litigation: File a lawsuit in the court of the jurisdiction agreed in the contract
• Property preservation: Apply to freeze the bank account or assets of the agency company
• Credit punishment: Submit dishonesty records through the Customs AEO certification system

How to prevent export agency payment risks?

Based on our experience serving 500+ foreign trade enterprises, we recommend the following preventive measures:

• Three-tier verification of qualifications
  • Check the agency companys Ministry of Commerce filing records
  • Verify the Customs AEO certification level
  • Investigate industry association credit ratings
• Seven essential contract clauses
  • Specify payment time nodes (recommended to use TT+LC combined payment)
  • Agree on the calculation method of default late fees
  • Set up clauses for joint custody accounts
• Three-dimensional dynamic monitoring
  • Require regular provision of customs clearance progress reports
  • Connect to foreign exchange receipt and settlement data systems
  • Establish a quarterly reconciliation mechanism

Common Questions Authority Answers

Q: How long does transnational litigation take?
A: According to 2025 judicial big data, it takes an average of 18-24 months, but arbitration procedures can shorten it to 9-12 months.

Q: Can 100% of the withheld payment be recovered?
A: Actual cases show that companies taking timely property preservation measures achieve a recovery rate of 78%, while those without measures only reach 32%.

Q: What losses are included in the claim scope?
A: In addition to the principal, you may claim the agreed-upon penalty for breach of contract, interest on the use of funds (referencing the LPR rate), and reasonable legal expenses.