What isExport RepresentationAgreement? What's the difference compared to self-operated export?

The export agency agreement is between the production enterprise and the professionalforeign tradeThe contract signed by the companyLegal Authorization DocumentThe core lies in clarifying the scope of rights and responsibilities for the agent to conduct export business in the name of the principal. Key distinguishing features from self-operated exports include:

• The agent does not bear the risk of ownership of the goods.
• Transaction profits are attributed to the actual producers.
• The agent shall collect commissions based on the service content.

Why is it necessary to sign an export agency agreement?

According to the latest international trade data for 2025, 76% of small and medium-sized enterprises opt for the export agency model, primarily due to the following necessities:

• Mitigate the risk of lacking export qualifications (especially for sensitive technology products)
• Leveraging the agents'Clearance networkandForeign exchange settlement channels
• Professional Support for Resolving International Trade Disputes

What are the key rights and responsibilities that must be clearly defined in the agreement?

In the agency agreement, special attention should be paid to the following three types of clauses:

• Authorization Scope Clause
  • Clearly define the agency territory and product scope.
  • Agreement on Exclusive/Non-Exclusive Agency Nature
• Financial Terms
  • Payment Method (TT/LC Ratio)
  • Commission Calculation Basis (FOB/CIF Price)
• Intellectual property clause
  • Trademark Usage Rights
  • Confidentiality Obligation for Technical Materials

What components are typically included in an agency fee structure?

Taking the typical agreement in the Yangtze River Delta region in 2025 as an example, the cost composition includes:

• Basic service fee (customs declaration, document preparation)
• Value-added service fee (L/CConfirmed, Export Credit Insurance)
• Risk Compensation (for Special Payment Terms)

How to prevent the risk of unauthorized operations by agents?

It is recommended to establish a triple protection mechanism in the agreement:

• Set upSingle Transaction Authorization Limit
• AgreementOwnership of Customer InformationBelonging
• EstablishRegular reconciliation mechanism

Does the export agency agreement have international legal validity?

Special attention must be paid to three legal elements:

• Agreement on Applicable Law (It is recommended to choose Singapore or Hong Kong law)
• Specify the dispute resolution method (arbitration takes precedence over litigation)
• AdditionalINCOTERMS 2025Applicable Terms

Under what circumstances can the agency agreement be terminated?

It is recommended to establish three types of termination clauses:

• Performance clauses (e.g., failure to meet the minimum export volume for six consecutive months)
• Material Breach Clause (e.g., disclosure of trade secrets)
• Force Majeure Clause (war, trade embargo, etc.)

How to Choose a Reliable Export Agent?

Based on the 2025 industry research, high-quality agents should possess the following characteristics:

• Record - filing of international freight forwardersAEO certificationRequire the provision of a tax payment certificate and a special VAT invoice.
• In the target market, there isCustoms Clearance Case Database
• ProvideExchange Rate Lock - inRisk management tools such as

What is the fundamental difference between an agency agreement and a distribution agreement?

The key difference lies in:

• Distributors have the right to set product prices.
• The distribution model carries inventory risks.
• Distribution agreements typically involve trademark licensing.

How often does the export agency agreement need to be updated?

It is recommended to conduct a protocol review every two years, with a focus on:

• Trade compliance clauses (e.g., the latest EU carbon tariff requirements)
• Payment Terms (Impact of SWIFT System Updates)
• Data Security Provisions (Regulatory Changes such as GDPR)