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Why am I being asked to pay an agent?
Post 1 of 11
Red7
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I have been working with a manufacturer for a couple of months now. We have gone through sampling and I am now ready to place my first order. I have been asked to make payment by TT to their 'agents' ****.

I spend a while checking this company out before deciding to work with them, including obtaining references from the owner of a large company they deal with.

I am sure that this company is genuine, but dont understand why I would need to make payment for the goods to an agent.

Many thanks
08 Jun 2007 04:08
Post 2 of 11
JBsportsuk
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Replying to [Red7]:

Maybe you sorted this issue?
It was just a trading company the suppliers use for their payments, we are from UK and have our exports office in China and we do the same most of the time.
If the suppliers don't take payments direct from us, or if the buyer wants other products from other suppliers in the same container we would use the trade company bank account, its the best way.

Nice to know if you was sorted in the end, [em17]
08 Jun 2007 18:06
Post 3 of 11
Business in China
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Replying to [Red7]:

The reason is very simple: The manufacturer itself does not have the right to export their products to you in China. In this case, they have to cooperate with a trade company who has direct right to export or import in China. That's to say, first they will 'sell' their products to the trade company ( their agent), then export their goods to you, so your actual partner is their agent instead of the manfuacturer in China. [em1][em1]
09 Jun 2007 06:16
Post 4 of 11
Red7
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Replying to [Business in China]:

Thank you for replying to my post Business in China. I have another question which I would be very grateful if you could answer.

I am ordering around one hundred dresses and to import them into the UK I need to obtain an import licence (due to an EU quota). In order to obtain this import licence I need my manufacturer to obtain an export licence. I have emailed them regarding this and they have replied stating that the cost of the licence will be around $10 per dress, which I will need to pay.

Firstly, the amount of $10 per dress sounds very high, do you know if it is correct? Secondly, being as they were aware from the beginning that it was their responsibility to obtain this licence to export goods to the UK surely the cost of obtaining the licence should be borne by them? Do you know what normal practice is?

Many thanks

[em1][em18]
11 Jun 2007 02:29
Post 5 of 11
Replying to [JBsportsuk]:
11 Jun 2007 07:46
Post 6 of 11
chrisjiang1
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Replying to [Red7]:The manufacturer itself does not have the right to export their products to you in China. In this case, they have to cooperate with a trade company who has direct right to export or import in China. That's to say, first they will 'sell' their products to the trade company ( their agent), then export their goods to you, so your actual partner is their agent instead of the manfuacturer in China.
that is right! the supplier doest not have the right to export the goods to from China.
[em16] if you want to buy products direct, you can contact a agent in China(for example: TCT, BERILLIATECH sourcing office, etc ). you can find a real facotry and also can control the quality, cost and delivery in CHina.

haha, it is just a suggestion for you reference. have a good day,
11 Jun 2007 20:19
Post 7 of 11
chrisjiang1
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Replying to [Red7]:The manufacturer itself does not have the right to export their products to you in China. In this case, they have to cooperate with a trade company who has direct right to export or import in China. That's to say, first they will 'sell' their products to the trade company ( their agent), then export their goods to you, so your actual partner is their agent instead of the manfuacturer in China.
that is right! the supplier doest not have the right to export the goods to from China.
[em16] if you want to buy products direct, you can contact a agent in China(for example: TCT, BERILLIATECH sourcing office, etc ). you can find a real facotry and also can control the quality, cost and delivery in CHina.

haha, it is just a suggestion for you reference. have a good day,
11 Jun 2007 20:20
Post 8 of 11
Replying to [Red7]:
haha,don't worry about it...They just need the commissions.They also make a living by this.But I don't think you need to pay much about it
11 Jun 2007 23:57
Post 9 of 11
Replying to [Red7]:whether the price for dress quota is reasonable or not, I'm not sure. but one thing I can tell you that in China many fabric products are required quota to be exported. but normally the quota is controlled by big companies. some small factories can't obtain such quota so they have to buy from companies who have. in this case the quota will be high valued. maybe your supplier's offer didn't include the cost of quota.
About payment to supplier's agent account. don't worry about this. it's because the supplier has no imp.&exp license. he must think it's safe then to ask you to t/t to the agent's account. he will pay his agent commission. it won't increase your cost.
12 Jun 2007 04:24
Post 10 of 11
Red7
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Replying to [kksin]:

many thanks for this, it is very helpful.
13 Jun 2007 03:54
Post 11 of 11
Red7
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Replying to [JBsportsuk]:

Thanks for your reply. I will let you know what happens. [em1]
13 Jun 2007 03:55
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