外贸函电

International Trade FormsAgency, Distribution & ConsignmentInternational Trade Formsn International trade forms refer to the common practices and channels between countries for the flow of commodities or services.n The commonly used indirect international trade forms are agency, distribution & consignment. Agency 代理n An agent is a middleman who can act on behalf of a principal in specific matters.n There are many kinds of agents being active in international business nowadays, such as selling agents, forwarding agents and clearing agents. Selling Agentn The selling agent means that the agent signs contracts with a third party on behalf of the principal or does other matters relating to the sales in compliance with the instructions from the his principal, while the principal shall be responsible for the agents business activities and obligations incurred therein.PrincipalAgent Customer Agency agreementCollecting orders or negotiating and concluding contacts Delivering goods Fulfilling the contractsThe Types of Agencyn General Agent l 总代理n Sole Agent or Exclusive Agentl 独家代理n Agent or Commission Agentl 一般代理或佣金代理The Characteristics of Agencyn An agent can only operate within the marketing territory authorized by the principal.n An agent does not carry stock. n The principal sets the retail price, retaining the title and controls of the goods. n The profit and risk of loss remains with the principal.n Payment is based on delivery to the ultimate buyer. n Agents are usually paid by commission.Questionsn Whats their relationship between party A and party B?n Which party sets the selling prices?n Under what conditions, party A has the right to terminate this agreement.n Which party will bear the expenses of advertising & publicity?n Can party A supply the buyers in the contracted territory directly? If so, under what condition? Distribution 经销n Distributors buy goods from the principals on their own account and take title to the goods and resell them to their customers in their territory.Principals Distributors CustomersContracts ContractsThe Characteristics of Distributionn The distributor takes his remuneration from the margin between the buying and selling prices.n Compared with an agent, a distributor assumes more risks and obligations: bad debts, advertising expenditure, and maintenance, etc. n Distributors generally enjoy more freedom and higher remuneration. Types of Distributorsn Sole or exclusive distributorlThe only distributor in a certain territory.n Non-exclusive distributorlSeveral distributors appointed by a principal in a certain territory. Answering Questionsn What is the relationship between party A and party B? n Does party B have the right to purchase the similar products from other supplier according to the exclusive sales agreements?n Can party B sell the goods supplied by party A to any other area outside the agreed territory?n Can party A conclude business with a buyer in the contracted territory? If so, under what conditions? Consignment 寄售n Under consignment, the consignor sends the goods to a foreign consignee who will sell the goods for the consignor according to the agreed terms.The Characteristics of Consignment n The consignor shall first deliver the goods to the consignment agent or commission agent.n Before the agent sells out the goods, the title to the good still belongs to the consignor.n The consignment agent will not undertake any risks and expenses and he only chargers commission for his service. Questions n Which party has the right to decide the selling price of the contracted goods at the end of party A?n Which party should pay the expenses for advertisement and public