Whose cargo is it when an import agent is involved?

Mr. Zhou recently encountered a troublesome issue: he entrusted an import agency company to purchase a batch of precision instruments. Upon 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 greatly surprised him – "The money I paid, how did the goods become someone else's?" In fact, this seemingly counterintuitive phenomenon is a common commercial logic in the import agency industry.

The Legal Truth of Ownership Attribution

According to Article 595 of the Civil Code, rights and obligations arising from agency directly belong to the principal. However, there is a special exception in the field of import agency: when the agent signs foreign trade contracts in their own name, they legally become the owner of the goods. This model is known as "indirect agency" in the industry and is common in the following scenarios:

• The agent advances payment or bears credit risk
• Import of controlled goods requiring special qualifications
• The principal has credit flaws or cash flow risks

Dual Protection in Commercial Practice

Mr. Zhou cosmetic import case is quite representative. Her agent, Zhongmaoda, adopted an "allonge of title retention clause," registering the goods under the company's name until full payment. This arrangement effectively achieved a win-win situation:

• For the principal: Avoids foreign exchange control risks and enjoys the agent's VAT credit
• For the agent: Controls cargo rights to reduce bad debt risks and facilitates financing and turnover

Data from a cross-border e-commerce platform shows that dispute rates for the ownership separation model are 67% lower than the traditional model, with particular advantages in return and claims processing.

Three Firewalls for Risk Prevention

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

• Whether the contract clearly stipulates the conditions for ownership transfer
• Whether the agent has formal customs declaration and tax payment records
• Whether the bonded warehouse storage can be inspected in real-time

Professional institutions like Zhongmaoda usually provide a "Cargo Ownership Visualization System", allowing principals to check the cargo's customs declaration status, tax payment certificates, and warehouse images via their mobile phones.

Rethinking the Boundaries of Commercial Trust

When "mine" becomes "ours," it appears to be a cession of rights on the surface, but in substance, it is an efficiency revolution brought about by professional division of labor. Next time you see an ownership clause in an agency contract, consider asking yourself: Do I need legal possession, or commercial substantive benefits?

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