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Irwin Law
Irwin Law, Attorney
Category: Business Law
Satisfied Customers: 7404
Experience:  30+ yrs. representing small business, real estate, probate
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We have been importing goods from China and distributing

Customer Question

We have been importing goods from China and distributing them here in the US to couple of companies. We used to pay in advance to manufacturers in China and then sell them to the companies in the US. Therefore, as an importer our company name appears on all of the papers related to US customs etc. But what we want to do is we would like these companies to whom we distribute goods to involve during purchase process. However, in the meantime we would like to stand as an importer. To give an example, let's say we (company ABC) are importing goods in the amount of $100. And we will sell these goods to Company X. We would like Company X to submit to payment to Chinese manufacturer directly. We won't be involving in the purchasing process. However, our company (company ABC) will be bringing these goods to the US. So bill of lading, packing list, commercial invoice and other related documents should be issued to Company ABC. Is this structure possible?
Submitted: 1 year ago.
Category: Business Law
Expert:  Irwin Law replied 1 year ago.

Hello. What I see is basically a business question rather than a legal one. The structure you describe resembles a manufacturer's representative, rather than an importer or wholesaler. The difficulty is that the Chinese manufacturer (M) will be shipping to you, ABC, And then billing the ultimate buyer X. This will require a contract between ABC and M . All X has to do is agree to submit their payment directly to M, based on M's invoice to them. The danger that I see for ABC is that eventually X will start dealing directly with M and bypass ABC. I hope I understand your question and that this information has been helpful. If so, a positive rating would be appreciated and there is no additional charge for that.