Trinidad and Tobago - Using an Agent to Sell US Products and ServicesTrinidad and Tobago - Using an Agent
Trinidad and Tobago has no specific legislation regulating representatives, distributors, or franchisers. Agreements for the appointment of agents are governed by common law principles under which the parties are virtually free to form their own contractual terms. There are no statutory restrictions or regulations governing the length of appointment, the period of notice required for termination, or the level of commission to which an agent is entitled.
A foreign investor is free to negotiate representation, agency, distribution, and franchising agreements with TT nationals. Royalties and commission rates are not regulated and may be freely agreed upon by the parties concerned. An agent does not generally acquire any additional rights as an employee beyond those stated in the contract. Contracts normally specify that the agent should not be regarded as an employee or partner of the principal; however, long-term distributors/agents sometimes acquire certain claims on distribution rights that go beyond and in some cases supersede contract rights under local common law interpretations. In such cases, the foreign product supplier may have to buy back distributor rights from the local agent.
Sales Agency Agreement: A typical sales agency agreement describes the extent of the agent's field of operations and the extent to which the principal accepts limitations on his/her freedom of action. The agreement gives the agent an opportunity to exploit markets, but allows the principal to withdraw exclusivity under stated conditions. The provisions in a sales agency agreement regarding payments of the agent's commission and accounting between the parties should be drawn to minimize their tax liabilities, including the expenses of Value Added Tax (12.5 percent on retail sales of most goods and services), and to take advantage of the U.S./TT Double Taxation Treaty.
Marketing Agency Agreement: In a marketing agreement, no authority is vested in the agent to contract on behalf of the principal. In an appropriately drafted marketing agency agreement, an overseas supplier will not be deemed to be trading within TT and incurs no tax liability on sales of the product.
Distributor Agreement: A distributor agreement typically includes terms on the extent of the distributor's territory, the extent to which he is protected from competition from other distributors of the same manufacturer's products, and the distributor's limits to supply outside the territory. Such an agreement normally includes training to familiarize the distributor with the product.
U.S. exporters seeking suitable agents and distributors are advised to contact the nearest U.S. Export Assistant Center (USEAC) for guidance. Additional information can also be obtained on the U.S. Commercial Service website.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
A foreign investor is free to negotiate representation, agency, distribution, and franchising agreements with TT nationals. Royalties and commission rates are not regulated and may be freely agreed upon by the parties concerned. An agent does not generally acquire any additional rights as an employee beyond those stated in the contract. Contracts normally specify that the agent should not be regarded as an employee or partner of the principal; however, long-term distributors/agents sometimes acquire certain claims on distribution rights that go beyond and in some cases supersede contract rights under local common law interpretations. In such cases, the foreign product supplier may have to buy back distributor rights from the local agent.
Sales Agency Agreement: A typical sales agency agreement describes the extent of the agent's field of operations and the extent to which the principal accepts limitations on his/her freedom of action. The agreement gives the agent an opportunity to exploit markets, but allows the principal to withdraw exclusivity under stated conditions. The provisions in a sales agency agreement regarding payments of the agent's commission and accounting between the parties should be drawn to minimize their tax liabilities, including the expenses of Value Added Tax (12.5 percent on retail sales of most goods and services), and to take advantage of the U.S./TT Double Taxation Treaty.
Marketing Agency Agreement: In a marketing agreement, no authority is vested in the agent to contract on behalf of the principal. In an appropriately drafted marketing agency agreement, an overseas supplier will not be deemed to be trading within TT and incurs no tax liability on sales of the product.
Distributor Agreement: A distributor agreement typically includes terms on the extent of the distributor's territory, the extent to which he is protected from competition from other distributors of the same manufacturer's products, and the distributor's limits to supply outside the territory. Such an agreement normally includes training to familiarize the distributor with the product.
U.S. exporters seeking suitable agents and distributors are advised to contact the nearest U.S. Export Assistant Center (USEAC) for guidance. Additional information can also be obtained on the U.S. Commercial Service website.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.