Agency Import

Agency import refers to a trade method in which a foreign trade enterprise, entrusted by a domestic principal, handles import business as an agent, including foreign negotiations, contract signing, letter of credit opening, vessel chartering and space booking, customs declaration and inspection, etc., but does not bear the risks of goods sales and market risks, and only charges an agency fee. It is mostly used when the principal lacks import and export rights, foreign exchange, or import experience, and relies on the agent's qualifications and channels to complete the import. Precautions: the agent must clarify the scope of authority to avoid exceeding it; the principal must bear risks such as goods quality and market fluctuations; both parties should sign a standardized agency import agreement to clarify fees and responsibility allocation. The difference from self-operated import is that in agency import, the agent does not own the goods and does not bear profit or loss; while in self-operated import, the importer purchases independently and assumes sole responsibility for profit or loss. The difference from buyout import is that in buyout import, the agent first buys out the goods and then resells them, bearing price risk.