For global buyers sourcing precision mold, stamping, and CNC machined parts from Chinese manufacturers, a common scenario arises: you want to pay in USD for quality assurance and financial convenience, but need the finished products delivered directly to your domestic assembly facility in China. While this arrangement streamlines your supply chain, it comes with specific foreign exchange (forex) compliance challenges that cannot be overlooked.
At PreciseWorksPlus, we’ve helped dozens of international clients resolve this exact issue while adhering to China’s strict forex regulations. In this guide, we break down why direct USD-to-domestic-delivery transactions face restrictions, and how to structure your order legally and efficiently.
Why Direct USD Payments for Domestic Deliveries Are Not Permitted
China’s forex control policies are designed to regulate cross-border capital flows and ensure transparency in international trade. Here’s the core issue with the “USD payment + domestic delivery” model:
- Cross-border vs. Domestic Trade Classification: A USD payment is classified as a cross-border transaction, which requires corresponding customs declarations and cross-border logistics documentation. Domestic deliveries, by contrast, are treated as local trade and do not involve customs clearance procedures.
- Forex Settlement Requirements: For Chinese manufacturers to legally receive and settle USD funds through their bank accounts, the transaction must be linked to an export activity—meaning the goods must leave China’s borders and generate export customs records. Without these records, banks cannot process the USD payment, as it would violate forex regulations.
Attempting to bypass these rules (e.g., using personal accounts for USD transfers) poses significant risks: delayed payments, frozen funds, or even penalties for both buyers and suppliers.
Legal Solutions: How to Structure Your USD Payment & Domestic Delivery
Fortunately, there are compliant, streamlined ways to achieve your dual goals: paying in USD and delivering to your Chinese assembly plant. Here are the two most reliable approaches for precision machining projects:
1. Cross-Border Export + Domestic Forwarding (Recommended for Bulk Orders)
This method aligns with China’s forex rules by first formalizing the cross-border trade, then arranging domestic delivery through a licensed logistics partner.
- Formal Export Declaration: We ship the precision parts to a free trade zone (FTZ) in China (e.g., Shenzhen Qianhai FTZ). Goods entering an FTZ are considered “exported” in customs terms, allowing us to complete the full export declaration process and obtain the necessary documents for USD settlement.
- USD Payment Settlement: With valid export customs records, your USD payment can be legally received and settled into our corporate bank account, with no compliance risks.
- Domestic Delivery from FTZ: Our licensed logistics partner will then transport the parts from the FTZ directly to your domestic assembly facility. This step is handled as a domestic logistics service, with clear documentation linking the goods to your order.
This approach is ideal for bulk orders of molds, stamping dies, or CNC machined components, as it ensures full compliance while keeping lead times short.
2. Utilize a Licensed Foreign Trade Agent
If you don’t want to deal with FTZ procedures, partnering with a qualified foreign trade agent is a flexible alternative:
- Agent as the Intermediary: The agent acts as the bridge between you and our manufacturing team. You pay USD to the agent’s overseas account, and the agent handles the forex conversion and domestic payment to us in RMB.
- Domestic Delivery Coordination: We deliver the precision parts directly to your assembly plant, with the agent managing all trade documentation to ensure compliance with both Chinese and international trade rules.
This option is particularly useful for small-batch custom machining projects, as it reduces the administrative burden on both buyers and suppliers.
Why Choose PreciseWorksPlus for Compliant Trade Execution
At PreciseWorksPlus, we specialize in custom mold, stamping, and CNC machining solutions for global clients with domestic manufacturing footprints in China. Here’s how we support your compliant transactions:
- In-House Trade Compliance Team: Our experts are well-versed in China’s forex regulations and FTZ operations, ensuring every step of your order meets legal requirements.
- Integrated Logistics Network: We partner with licensed FTZ logistics providers to streamline export declarations and domestic delivery, cutting down on lead times and costs.
- Transparent Documentation: We provide full visibility into customs records, payment receipts, and logistics tracking, so you can audit the process at any time.
Final Thoughts
Paying in USD for domestic deliveries in China is not impossible—but it must be done within the framework of China’s forex and customs regulations. By choosing a compliant structure like FTZ export-forwarding or working with a licensed agent, you can protect your funds, avoid delays, and keep your supply chain running smoothly.
If you’re a buyer looking to source precision machining parts, pay in USD, and deliver to your Chinese assembly plant, contact the PreciseWorksPlus team today. We’ll design a customized, compliant solution tailored to your project’s needs.
