How to choose a reliable overseas wine distributor? How to deal with distributor breach of contract? What are the specific requirements for export qualifications?
Home»Food & Beverages» How to choose a reliable overseas wine distributor? How to deal with distributor breach of contract? What are the specific requirements for export qualifications?
How can we assess the reliability of an overseas red-wine distributor’s credentials?
When selecting an agent, the following key documents must be verified:
Legal business qualifications: Provide original scanned copies of the alcohol import license, food distribution license, and tax registration certificate.
Proof of Warehousing Capacity: Provide the lease contract or property ownership document for the temperature-controlled warehouse, with the temperature required to be maintained between 12–18 °C.
Distribution Channel Audit: Require the distributor to provide a list of sales channels for the past two years, with a focus on verifying the proportion of terminal channels such as supermarkets and restaurants.
Solvency: Confirm its working capital scale through a bank credit certificate; it is recommended to require a 30% advance payment for the first order.
What risk clauses should be noted when signing an agency agreement?
The contract must clearly stipulate the following key clauses:
Minimum Purchase Quantity Clause: It is recommended to set tiered purchase-volume targets—e.g., 1,000 cases in the first year, increasing by 15% in the second year.
A 20-foot temperature-controlled container holds approximately 9,000 bottles.
A 40-foot high-cube container is recommended to load different grades of wine in tiers.
Earthquake-resistant packaging requirements:
The bottle must be individually wrapped with EPE pearl cotton.
Outer-box compression strength ≥ 800 kg/m2
Transportation Insurance Clauses: It is recommended to take out All Risks insurance, with special mention of the breakage and leakage compensation clause.
What should I do if an agent defaults on payment?
It is recommended to adopt tiered response measures:
Phase 1 (30 days overdue): Suspend the execution of new orders; a bank payment slip is required.
Phase II (60 days overdue): Initiate cargo preservation procedures and contact the local customs to place the inventory on temporary hold.
Stage 3 (90 days overdue): Initiating legal proceedings under the ICC arbitration clause
How do tax treatments differ across target markets?
Tax and fee standards for major markets (effective 2025):
EU market: VAT rate 20%–27%, customs duties levied by alcohol concentration tiers
US Market: Federal excise tax is $0.21–$0.31 per bottle; state taxes vary widely.
Southeast Asian market: A 5%–15% tariff preference is available under the ASEAN Free Trade Agreement.
Middle East market: Halal certification must be obtained in advance; the religious tax rate is 12% of the product value.