Foreign Import Agent

Foreign Import Agent

Foreign Import Agent or import agent.
This is a person or company, resident in the foreign country that acts as the sales agent, often on an exclusive basis.

Such an agent promotes manufacturer's goods to local buyers and receives commission on an agreed percentage of the value of the sales or on a basic monthly retainer fee.

The choice of such an import agent is a delicate task, the manufacturer should obtain:

(a) A clear picture of the would-be agent's commercial history.

(b) His banking and commercial references.

(c) A list of other products handled and companies represented.

(d) The agent's premises visited with a personal interview.

(e) For a trial period, the firm chosen is usually granted an exclusive right to sell the manufacturer's product.

The import agent's main task is to promote the sale of the manufacturer's product, relay purchase orders to the manufacturer and to perform other related tasks such as collecting and remitting market information.

Representing the manufacturer's at the trade shows, assist manufacturer's employees when they make periodic visits, advise about new government regulations and provide sales analysis, etc.

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Sales commission for the import agent should be built into the selling price of the goods, all prices, quotations, brochures, etc. may be shown openly to potential customers.

Although the term import agent is used to describe such a person, an agency agreement must specify that the relationship is that of an independent contractor. In this way the manufacturer cannot be held legally liable for actions committed by the import agent.

Generally import agents do not have title to the goods. The exporter receives the order from the import agent but ships the goods directly to the buyer. Import agents provide a wide variety of services, etc.

When an import agent is appointed to represent an entire territory or country, he is called a sole agent.

When selling through an import agent, the exporter has more control over the market than when selling through a distributor and the responsibilities of both parties should be spelled out in an agreement.

Foreign Distributor

Foreign Distributor or Import Merchant, is a firm located in the foreign market that purchase goods from abroad for re-sale in his home market.

Unlike the import agent, who works on a commission basis, the Foreign distributor or import merchant, buys the goods outright and assumes the risk of being able to resell them.

Foreign distributors are usually given the exclusive right to sell the product, should be selected with great caution and his rights and duties set out in a written distributorship agreement.

Foreign Distributors or import merchant vary according to the types of products handled and their coverage of the foreign market. In receiving the maximum discount on price, the Foreign distributor may agree to develop a market for the exporter.

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