Legal Characterization of Agency Export Agreements

An equipment agency export agreement is, in essence, categorized asCommission ContractandCommission Contractof the composite legal relationship. Pursuant to Article 919 of the Civil Code, when the entrusted party (the agency company) handles export affairs in its own name for the principal (the equipment manufacturer), the following legal characteristics must be given special attention:

• The agency company has independent customs declaration entity status.
• All foreign exchange receipts and payments must be conducted through the correspondent account.
• Special provisions on intellectual property ownership are required

Key Design Points for Core Terms of the Agreement

After the implementation of the 2025 edition of the Incoterms? rules,?Equipment Export?The agreement should focus on the following clause provisions:

• Pricing Clause
  • Differences in Applicable Scenarios Between DAP and DPU Terms
  • Exchange rate fluctuation risk sharing mechanism
• Quality Assurance
  • CE Certification Transition Responsibility Allocation
  • Obligation to establish an after-sales service system
• Dispute Resolution
  • Recommendations on Selecting Cross-Border Arbitration Institutions
  • Special Provisions on Evidence Preservation

Practical Guide to Typical Risk Prevention

A construction-machinery company lost USD 3.4 million in 2024 due to loopholes in its agreements, exposing three blind spots in risk prevention and control:

• Third-party claim transfer: Clearly stipulate the proportion of liability to be borne by each party when the buyer makes a claim.
• Technical parameter error: Establish a dual-verification mechanism and error-tolerance standards
• Logistics Node Control: Refine the operational procedures for Pre-Shipment Inspection (PSI)

Analysis of a Model Special Equipment Export Agreement

Taking CNC machine tool exports as an example, the agreement needs to be supplementedTechnology Control Clauses:

• ECCN Code Confirmation Process
• End-User Certificate (EUC) Verification Procedure
• Re-export restriction clause

Common Legal Misconceptions Alert

According to the Supreme People's Court's 2024 Commercial Trial White Paper, disputes over equipment exports mainly stem from:

• Confusing agency with a sales-purchase relationship (37%)
• Incorrect application of INCOTERMS version (29%)
• Neglecting updates to technical trade measures (18%)