Learn to understand what is import and export agent

Basic concept

 

        Agency in international trade, mainly refers to sales agents。The exporter concluded an agreement with a foreign agent。The exporter as the principal, authorized agent on behalf of the exporter to sell commodities, sign contracts, the rights and obligations arising therefrom shall be directly effective against the principal。

 

        The agent acts within the scope authorized by the principal, does not bear the risks and costs of the sale, does not have to pay funds in advance, and usually draws the agreed proportion of the commission according to the amount of the transaction, regardless of the profit or loss of the transaction。

Learn to understand what is import and export agent how to use

 

一.Types of agents

 

        According to the authority granted by the principal to the agent, the sales agent can be divided into the following categories:

 

        GeneralAgent。It's the plenipotentiary representative of the client。Represent clients in sales activities and a wide range of other business activities within the designated territory。

 

        Sole agent (ExclusiveAgentorSaleAgent)。Within the time and territory specified in the agency agreement, the agent, that is, the principal, who enjoys the exclusive right to the specified commodities, shall not sell within the above scope by himself or through other agents。

 

        General Agent。Refers to the agent who does not enjoy the exclusive agency franchise, and the principal can entrust several agents to sell the same goods in the same area at the same time。

 

二.Exclusive agency agreement

 

        An agency agreement providing for a franchise is an exclusive agency agreement。Its main contents are as follows:

 

        The basic relationship between the two parties。The relationship between the exporter and the agent is principal-agent relationship。The agent shall act within the scope authorized by the principal and shall be honest and faithful to the principal。The principal shall bear civil liability for the agent's acts of agency within the above-mentioned scope。

 

        Commodity, territory and term of the agency。In the authorization of the principal to the agent, the category and model of the commodities sold by the agent shall be clearly stated, while the exclusive agent must specify the geographical scope of its business, and agree on the validity period of the agency agreement, or provide for the suspension clause。

 

        Exclusive right。Within the above scope, the principal undertakes that the designated exclusive agent is the only intermediary who transacts with the Buyer. If the Principal transacts directly with the Buyer, the principal shall still pay the exclusive agent a commission based on the transaction amount。

 

        Commission clause。The commission rate, the time and method of payment of commission must be specified in the agency agreement。The commission rate can be linked to the amount or quantity of the transaction。

 

        Minimum turnover。A sole agent usually promises a minimum volume or amount。If this amount is not reached, the Client has the right to terminate the agreement or adjust the commission rate as stipulated in the Agreement。

 

        Business report。The agent has the obligation to provide regular or irregular business reports to the principal, so that the principal can understand the local market conditions and the performance of the agent。The ability to provide reasonable business reports is an important basis for assessing agents。

 

三.Use of proxy

 

        Exporters entrust agents to sell goods, mainly by the use of agents familiar with the market of sale, have a wide range of sales channels。In particular, it should be pointed out that the goodwill of the agent plays a decisive role in the sale of the commodity and even the image of the export enterprise。Choose an agent, not only focus on his sales ability, but also should pay attention to the agent's existing goodwill。At present, many multinational companies have entered the field of sales agents in the international market. How to exploit the market with the help of the good reputation of multinational companies is a topic worth studying for Chinese enterprises。