Core Structure of Import Equipment Agency Agreements

In equipmentImport RepresentationIn business, the formulation of professional agreement clauses directly affects project success. According to 2025 international trade practices, a complete agency agreement should include the following modules:

• Basic service terms: Covering agency scope, service period, and equipment list
• Commercial terms system: Payment conditions, exchange rate fluctuation handling, and tax responsibility
• Technical guarantee terms: Equipment acceptance standards, warranty period, and technical documentation requirements
• Risk control terms: Transportation responsibility division, insurance coverage, and force majeure handling

Five key clause practical points

According to the General Administration of Customs 2025 import equipment statistics, 80% of trade disputes stem from unclear clause formulations. The following core clauses require special attention:

Payment terms clause

• It is recommended to adoptInstallment payment structure:
  • Advance payment not exceeding 30% of total contract value
  • 40% payment before equipment shipment
  • 25% payment after acceptance inspection
  • 5% retention as warranty bond
• Must specifyExchange Rate Fluctuation Compensation Mechanism, it is recommended to use the three-day average exchange rate prior to payment date

Quality acceptance clause

• Technical parameters must be clearly definedTolerance range(e.g. ±3%)
• EstablishThree-level acceptance criteria:
  • Pre-delivery FAT test (Factory Acceptance Test)
  • Post-delivery SAT test (Site Acceptance Test)
  • Performance verification during trial operation period
• Warranty period should commence fromThe date of stable equipment operationEffective date

Intellectual property clause

• Require suppliers to providePatent validity guarantee
• Clearly define theScope of usage rights for technical documentation
• Agreed compensation for infringementMinimum liability clause

Risk transfer clause

• It is recommended to adoptDAP (Delivered at Place)Terms
• Transportation lossCompensation initiation thresholdShall be set at 0.5%
• Insurance coverage must includeUnpacking and commissioning phase

Remedies for breach clause

• Delayed deliveryGraduated penalty clauseSettings:
  • First week penalty at 0.1% daily
  • Second week penalty at 0.2% daily
  • Buyer has right to terminate after three weeks
• Performance failureRemediation priority clause

Three golden rules for clause formulation

• Bilingual equivalence principle: Chinese and English versions have equal validity
• Dispute forum selection principle: Preferentially designate China Arbitration Commission jurisdiction
• Dynamic adjustment mechanism: Bulk equipment procurement requires price adjustment formula

A case study of precision instrument imports shows that by adopting the aforementioned clause system for agency projects, the dispute occurrence rate was reduced by 65%, and the average acceptance cycle was shortened by 22 working days. Professional agency companies can help enterprises recover approximately 15% of hidden cost losses through clause design.