Site Contents for Secrets of International Trade

Foreign Import Agent or import agent.
"...specify relationship as an Independent Contractor and you cannot be held legally liable for actions an agent commit..."

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.

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.

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.