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The law of the sea.


Postby Briggs » Tue Aug 16, 2016 2:51 am

Dear David,

I am interested in importing/exporting wines and I would like to know what sort of relationship I should try and set up with the wineries? For example what is the difference between a distributor and an agent? Many thanks for your help.

Posts: 39
Joined: Tue Feb 25, 2014 4:56 pm


Postby Amett » Fri Aug 19, 2016 6:13 pm

Dear Cezar

I hardly never get a question from anyone who lives in the same suburb as me- most of my answers are for overseas enquiries-

(1)You can either be a "Buyer'-where you Buy the wine from a SUPPLIER, the resell it as "seller" in the country you wish to import the product into- or you can approach the wineries direct and ask to be their "agent"-

(2) Under International trade and English law the term "agent" is difficult to define-So I have done the work to clear this ambiguity up to a basic understanding of application,of which variants exist-

(3) In number one above you are really a buyer or at the very least an "Agent acting on behalf of an undisclosed principal"- In that You have sourced the wine, but you do not want to tell anyone who they are, otherwise YOUR Buyers will go direct to such suppliers cutting you out of any possiblity to make a profit from the deal- The problem here is that you have no protection from the "supplier" and really you are acting on your own as a 'true " intermediary - who knows proceudres on how to buy and resell such products-

(4)The Intermediary's skill ,is being able to find a End Buyer for a product- in doing so the Intermediary enter into a contract of supply- accepts the Buyers funds, uses such funds to buy the wine from the supplier at a slightly lower price than what its  sold for-YOU are selling the  product to YOUR end buyer as the "middle person" in the whole deal- the difference in price is your profit-

Your supplier quotes you a price that will include all costs associated with getting the product on board ship-(eg: Dear sir, can you please quote me 20,000 bottles of TOKAY wine, with a full content label and a label with the name "Cezar Tokay" applied as per our artwork-CIF Melbourne Australia): Your Buyer has to cop all the costs associated with imports duties and import permits-when the wine rrives in Melbourne,(or you do as a driect importer) YIn essence you basically only have to ensure the supply- and procedures, thus YOUR skill-in finding the product first, then being able to obtain orders for such products are also vital to the whole process.You would not order such wines unless you have orders and huge intrests locally to buy such wines..?

(5) Your first step to any deal is to obtain samples- hence so long as the samples requested fall under International garnet rules of being under 1000 dollars, such sample will by pass normal custom requirements- sample are usually sent from a post office- the suppliers has to sign a sample declaration, then the samples are sent to you via postal mail or courier- armed with samples you go and secure the orders-Once orders are secured you formally place an order to "BUY" from the supplier- who has to meet all document requirements to you, as advised by you.You are the boss, nobody tells you what to do- and you control and make your own profits-

(6) Then you have the other "Agent" term defined as "Agent acting on behalf of a disclosed principal"- everything that has been stated still applies except this time- You have approached the suppliers and asked him for an exclusive "Agency agreement"- You then work hard to secure the order from the Supplier as his official agent-All the orders go through you- and evey month from sales the supplier gives you an agreed commission amount-You are not the boss- you Must act within the scope of the agreement, but if anything goes wrong you cannot be blamed so long as you have acted within the bounds of your Agency-In effect you have a "mandate" from the supplier to act on his behalf- if anyone contacts the supplier direct he is obligated under the rules of such Agency to pass the order back to you- In this situation- everytime the customer places an order, your commission remains perpetual- even if the agreemnt with the agency is terminated- the customers which YOU have sourced who keeps on biuying from the supplier YOU have introduced- will still earn you the perpetual commission, at a reduced rate after the first order has been completed-

(7) look at the last 6/7  question answerd- there you will find invaluable information as to procedures,margins and agency- You have also obtained part One "The world is Yours"-Where the works stipulate you as the "Intermediary"-(a type of Broker) The exact the same procedures apply whether you are acting as an "agent" or if you were using your own money to buy the product for reselling-

You secure the product first- Find the End Buyers-Follow the basic procedures of the works in regards to document presentation and payments- and thats it- Once the supplier get the products on board ship- in Romania for instance, then the supplier gets his money- but YOU own the products- because you have all the title delivery documents to prove as such-The title delivery Documents are then sent to your END BUYER - who becomes the owner of the goods, let say TODAY the goods are loaded at port in Varna-In a few day you get title documents sent via courier to you or your bank(or the end buyers bank) The ship finally arrives at the discharge custom wharf in 6 weeks time- the End Buyer presents his documents to prove title- produces his IMPORT permit as well and other requests customs may have(which the end buyer should have found out about earlier- or if you are taking delivery - you should have found out instead, pay all taxes and custom duties..and get the wine delivered into storage- from storage you begin distribution to your clients, using commission sales people you have employed, from your storage warehouse)(The wine will have a label applied {Distributed in Melbourne Australia by Cezar Imports)

You see Cezar its all about a set of procedures- You do not have you know anything about shipping-just procedures as defined in the works "The world is yours"- naturally if you have funds-and are eager- you can employ a person(agent) to do all the work for you- find you the wine as well- you pay a fee for His services- and the wine is simply delivered to your front door- or you can spend a few weeks or months to learn the procdures yourself-

I hope the above is of help- read the works, read wine answers already given- and the idea on how to import/export such produts will begin to make a whole lot more sense- use the above as a basic guidance - obviously the subject matter is much more complex than implied-Good luck;

Kind Regards

David Papa

FTN Exporting


Melbourne Australia
Posts: 40
Joined: Tue Feb 18, 2014 10:18 pm

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