Must-read for foreign trade enterprises: Ten risk points in agency sales agreements for imported equipment

Core elements of agency agreements from a professional perspective

Under the new pattern of international trade in 2025, agency sales agreements for equipment products involveDual legal system constraints. A medicalequipment. For example, Indonesia has the SNI certification, Thailand has the TISI certification, and the Philippines has the BPS certification. It is necessary to confirm in advance the equipment voltage (such as 380V/50Hz in Thailand), the compatibility of the CE certification, and the proof of environmentally friendly materials.merchants case of neglecting EU CE certification clauses, resulting in the detention of an entire shipment at customs, serves as a warning that the rigor of agreement clauses directly affects trade success.

Three key modules of agreement architecture

A complete agency sales agreement should include the following core contents:

• Confirmation of principal qualifications
  • Validation of the validity of original equipment manufacturer authorization documents
  • import and exportVerification of the compatibility between rights and industry licenses
• Division of rights and obligations
  • Exclusive agency regional protection clauses
  • Liability for breach of minimum purchase quantities
• Risk control mechanism
  • Setting standards for quality objection periods
  • Applicable boundaries of force majeure clauses

Practical design of payment terms

An engineering machinery agent adoptsInstallment payment + quality bondmodel, successfully reducing 30% of trade risks:

• The down payment ratio is recommended to be controlled at 20-30%
• Final payment is directly linked to equipment acceptance
• Setting techniques for exchange rate fluctuation compensation clauses

Analysis of legal applicability clauses

The International Trade Contract Interpretation Rules effective in 2025 require agreements to clearly specify:

• Choice of governing law (manufacturers country/agents country)
• Dispute resolution venue agreement (recommended to choose third-country arbitration institutions)
• Special provisions on intellectual property ownership

Prevention of pitfalls in after-sales service clauses

A semiconductor equipment agency agreement failed to specifytechnical training responsibilities, resulting in buyer claim cases showing:

• Spare parts supply cycle should be specified in working days
• Graded setting of technical support response time
• Version update clauses for software upgrade services

Post-termination settlement mechanism

Professional agreements should include complete exit plans:

• Repurchase price calculation formula for inventory equipment
• Confidentiality clauses for customer data transfer
• Division of responsibilities during after-sales service transition period

Through systematic organization of agreement elements, enterprises can establishrisk-controllable, clearly-defined rights and responsibilitiesagency cooperation framework. It is recommended to commission professional institutions forclause compliance reviewbefore signing, ensuring the agreement complies with the latest international trade rules.