In foreign trade, an agent is an intermediary commissioned by an exporter or importer to act on their behalf in finding customers, negotiating transactions, signing contracts, or handling other business matters. The agent does not own the goods and mainly earns commission. Use cases include: exporters using agents to develop overseas markets, importers purchasing goods through agents, or both parties arranging transportation and insurance through agents. Notes: clarify agency authority (exclusive or general), commission rate and payment terms, territory and duration; an agent's acts may constitute legal representation, so guard against ultra vires risks. Difference from a distributor: a distributor buys the goods outright and bears profit/loss, while an agent only earns commission and does not bear goods risk. Difference from a broker: a broker usually does not continuously represent one party, while an agent often has a relatively stable entrustment relationship.
📝 Examples
1. We signed an exclusive agency agreement with a US agent, who is responsible for promoting our new solar panels in North America, with a commission of 5% of sales. (Note: exclusive agency, clear territory and commission)
2. Because the local agent is familiar with market regulations, we commissioned it to represent the company at a trade show and contact potential buyers, and we successfully obtained the first batch of orders. (Note: agent assists with market development and customer contact)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner