The Legal Basis Of China'S Current Foreign Trade System

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According to the regulations on Provisional Regulations of foreign trade agency system promulgated by the Ministry of foreign trade and economic cooperation in 1991 (hereinafter referred to as "Interim Provisions"), the foreign trade agency means that the agent signs the contract in the name of the agent, and the contractual rights and obligations are directly borne by the agent, which applies to the enterprises that have both the right to operate foreign trade. Indirect agents refer to the agents signing contracts in their own name, the rights and obligations of the contract are borne by the agents, and the rights and obligations between the agents and the agents are determined by the principal-agent contract, which is applicable to both the enterprises with the right to operate foreign trade and the relationship between the trustor and the foreign trade enterprises without the right to operate foreign trade.

Generally speaking, the foreign trade agency system is referred to as interagency and related system.

In the foreign trade agency system, the agent should first have the general rights and conduct ability of the enterprise legal person and should be engaged in the business within the approved and registered business scope; secondly, the foreign trade agent must have special rights and capabilities -- the right to operate foreign trade; the company or the enterprise without the right to operate foreign trade must entrust a company with the right to operate foreign trade to import and export, and must sign the contract in foreign trade. Third, the foreign trade agent must also have the right to operate the foreign trade of the commodity it represents.

In this case, the agent still needs to fulfill the contract signed by him and bear the corresponding responsibility for it.

It can be seen that the foreign trade agency system consists of two contractual relationships: the entrustment contract relationship between the trustee and the trustee, the contract of sale between the trustee and the foreign merchant.

Disputes arising from the sale contract are usually settled according to the arbitration clauses in the contract. The disputes arising from the entrustment contract are handled by the courts with jurisdiction in the country.

The process of China's foreign trade development and reform calls for the vigorous implementation of the foreign trade agency system, because this agency system is a form of trade consistent with the international practice and suitable for China's national conditions.

Based on China's national conditions, foreign trade companies and production enterprises have respectively formed their respective characteristics and advantages. The implementation of the foreign trade agency system can give full play to their advantages. The implementation of the foreign trade agency system can give full play to both advantages, thereby enhancing the overall economic efficiency and international competitiveness of our economy and promoting the further development of import and export business.

It can be seen that the foreign trade agency system can promote the combination of foreign trade enterprises and production enterprises, make the producers directly participate in the international market competition, facilitate the combination of industry and trade, combine technology and trade, improve management and improve economic efficiency, and have its advantages.

However, after more than ten years of reform and opening up, both foreign trade enterprises and production enterprises have undergone great changes in the aspects of organizational structure, production and operation scope, and functions of activities. With the adjustment of domestic financial and taxation policies, some rules and practices of foreign trade agency system have been increasingly unable to meet the requirements of the new situation, and some of their defects have become increasingly evident.