How to appoint an agent. Agency selection is critical and affects development of your whole export effort.
The challenge is to appoint an agent who knows export market and has influence with key buying personnel in appropriate sectors and, is committed to your business.
The first step is to draw up a preliminary list with assistance of embassies, Enterprise Ireland Office Network overseas (or your local Trade Promotion Government Agency), Chambers of Commerce, Banks and personal contacts.
The next step is to write to organisations and industrialists on that list giving your firm's background and export objectives, and checking whether they act for competitors in that market, and their terms of commission.
The replies you receive form basis of a short list, which in turn is basis for interviews when you visit market.
Trade and banker's references can then be taken up and an appointment made.
Agency Agreement
An agency agreement is a statement, in legally enforceable form, of a commercial contract.
Essential contractual clauses
There are no hard and fast rules but following is a checklist of essential clauses and conditions of an agency agreement.
Purpose of agreement Parties to agreement Definition of terms of agreement Courts for dispute Goods to be included Territory to be covered Limitations agency Duties and responsibilities of each party Conditions of trading between parties Remuneration of agent Duration of agreement Treatment of costs, insurance, freightage Legal responsibilities Financial commitments or limitations Termination of agreement Penalty clauses Minimum levels of performance Changes of ownership Rights to agreement extension Mutual training/co-operation needs Conditions of Sale
The agreement should also deal with conditions of sale such as:
Quantity and detailed specifications for products Price, ex-works, FOB, CFR, FAS, CIF, DDU etc. Place of delivery Date of delivery Method and time of payment Trade terms (Incoterms)