Home?Trade Compliance? Does a commercial agency agreement equal an export contract? 4 key differences that foreign trade practitioners must know
Is a commercial agency agreement an export contract?
In 2025's latest international trade practices,commercial agency agreements and export contracts have fundamental differences. According to the United Nations Commission on International Trade Law (UNCITRAL) definition, agency agreements fall under principal-agent legal relationships, while export contracts belong to sales legal relationships. The former regulates cooperation methods between agents and principals, while the latter directly binds buyers and sellers to delivery-payment obligations.
Analysis of four core differences between them
Different legal nature
Agency agreement: Governed by the Convention on Agency in the International Sale of Goods
Export contract: Governed by the United Nations Convention on Contracts for the International Sale of Goods (CISG)
Different principal relationships
Agency agreement: Principal → Agent (may extend to end buyer)
Export contract: Seller → Buyer (direct rights and obligations relationship)
Different performance methods
Agency agreement: Typically specifies commission calculation and market development obligations
Breach of agency agreement: May involve pre-contractual liability
Breach of export contract: Directly leads to payment recovery or quality claims
Typical application scenarios in practice
Common operational models in 2025 areCombined use of agency agreement + export contract: A machinery manufacturer signs a 3-year exclusive agency agreement with a Vietnamese agent, specifying market promotion obligations and commission rates. Each specific transaction requires a separate export contract clarifying equipment models, payment terms and other commercial clauses.
Special attention required forLegal interface issues:
Agency agreements should specify the authorization scope for signing export contracts
Export contracts must explicitly exclude the agent's joint liability
Commission calculation basis must be linked to export contract amounts
How to select appropriate legal documents?
Enterprises are advised to base selection onCooperation stageSelect legal documents:
Market development phase: Prioritize signing agency agreements to establish cooperation framework
Specific transactions: Must separately sign export contracts
Long-term cooperation: Can supplement with distribution agreements to form a complete system
According to the latest international trade dispute cases published in 2025, disputes caused by failure to distinguish between agency agreements and export contracts accounted for 17.3%. In a Sino-German trade dispute, because the agency agreement included price terms, the court recognized it as having sales contract attributes, resulting in additional compensation liabilities for the principal.
Exclude sales relationship clauses in agency agreements
Have export contracts signed directly between actual buyers and sellers
Regularly review the temporal validity interface of legal documents
Consult local trade compliance advisors when involving emerging markets
Special reminder: According to the amended Cross-Border Trade Services Law effective in 2025, if an agency agreement contains goods ownership transfer clauses, it may be recognized as a de facto sales contract. Enterprises must pay attention to the legal document attribute definition.