Whose goods are those in import agency?

Mr. Zhang recently encountered a troublesome matter: He entrusted an import agency company to purchase a batch of precision instruments. However, during customs clearance, he was informed that the ownership of the goods belonged to the agency, and he only had the right to use them. This surprised him greatly - "I paid the money, how could the goods belong to someone else?" In fact, this seemingly counter - intuitive phenomenon is a common business logic in the import agency industry.

According to Article 595 of the Civil Code, the rights and obligations arising from the agency act directly belong to the principal. But there is a special exception in the field of import agency: When the agency signs a foreign trade contract in its own name, it legally becomes the owner of the goods. This model is known as "indirect agency" in the industry and is commonly seen in the following scenarios:

• The agency advances the payment for goods or assumes credit risks
• Import of controlled goods that require special qualifications
• The principal has credit flaws or capital chain risks

Ms. Li's case of importing cosmetics is quite representative. Her agency, Zhongshitong, adopted an "ownership reservation clause" and registered the goods under the company's name before the payment was settled. This design actually achieved a win - win situation:

• For the principal: Avoid foreign exchange control risks and enjoy the VAT deduction of the agency
• For the agency: Control the right of goods to reduce the risk of bad debts and facilitate financing and turnover

If you are choosing import agency services, be sure to confirm:

• Whether the contract clearly stipulates the conditions for the transfer of ownership
• Whether the agency has regular customs declaration and tax - paying records
• Whether the real - time inspection of goods supervision and warehousing is available

When "mine" becomes "ours", on the surface, it seems to be a transfer of rights, but in essence, it is an efficiency revolution brought about by professional division of labor. The next time you see the ownership clause in an agency contract, you might as well ask yourself first: Do I need legal possession or commercial substantial benefits?

Welcome to share your import agency experience in the comment section. The three readers with the most likes will receive an electronic version of the International Trade Risk White Paper.