In international trade, in addition to direct business negotiations and transactions between buyers and sellers, reliable customers can also be selected to establish agency relationships in some countries or regions according to business needs. One important reason for entrusting a foreign agent is that the agent is familiar with the local market and the actual situation of the buyer. We can use the favorable conditions of the agent in the local market to help us expand, consolidate, and expand the export market.
Trade agents are indispensable for overseas trade nowadays. One convenient way to conduct overseas trade is through overseas trade agents, which can reduce one's own experience and investment, and ensure smooth trade. However, how to conduct overseas trade agents is of great concern to everyone. Choosing a reasonable trade agent can help enterprises develop well and ensure smooth trade, Next, the editor will explain the specific content of trade agency to everyone.
1、 What is an overseas trade agent like
In international trade, in addition to direct business negotiations and transactions between buyers and sellers, reliable customers can also be selected to establish agency relationships in some countries or regions according to business needs.
One important reason for entrusting a foreign agent is that the agent is familiar with the local market and the actual situation of the buyer.
We can use the favorable conditions of the agent in the local market to help us expand, consolidate, and expand the export market.
The establishment of an agency relationship, the rights and obligations of both parties, are determined based on the agency agreement signed by both parties.
In this relationship, the party referred to as the principal authorizes the other party referred to as the agent, who acts on behalf of the former to enter into contracts or engage in other commercial activities with third parties.
The principal shall pay a commission to the agent based on their operating amount.
2、 The main forms of agency
There are three main forms of agency:
Exclusive agency: The principal grants the agent the exclusive right to act as an agent for the sale of a specified commodity in a certain region and for a certain period of time.
General agent: The agent does not have the exclusive right to sell the agent's goods in a specific area, but only accepts the commission from the principal to sell the goods on behalf of them.
General Agent: The general agent has extensive authority granted by the principal and can represent the principal in promoting goods.
In addition to signing contracts, the general agent also engages in other business activities and handles non commercial matters, and the principal bears legal responsibility.
3、 Division of Trade Agency
Trade agency business can be divided into the following categories:
1. The agent (trade agency company) accepts the commission of the principal to fully handle the business, from signing contracts to receiving and paying foreign exchange to preparing documents for customs declaration. This type of trade agency behavior is called systematic trade agency.
2. The agent (trade agency company) accepts the commission of the principal to engage in foreign exchange payments and assist in providing customs declaration documents, and does not involve signing contracts with foreign parties. The work of signing foreign trade contracts is operated by the principal, and this type of non system trade agency is called.
3. Agents (trade agency companies) only need to provide relevant customs declaration documents. This type of trade agency business is relatively flexible, but also difficult to control. This type is called direct trade agency.
Everyone may not have a thorough understanding, but it is also important to grasp the key points. Choosing a suitable agent is one aspect, which is also very important. This also ensures that one's own or imported goods can be cleared or entered on time, ensuring smooth trade. At the same time, everyone should actively understand the basic process of trade agency to ensure smooth agency and prevent goods from being overstocked or delayed, causing economic losses.