Exposure created by others.
WHY IT MATTERS
You are responsible for what is done on your behalf.
WHO CREATES THIS EXPOSURE
Sales agents and representatives Customs brokers and clearing agents Consultants who facilitate approvals Joint venture partners Distributors Anyone acting for you
WHAT TO ESTABLISH BEFORE ENGAGING ANY
Who they are and who owns them Their reputation and record What they will actually do Whether their fee is proportionate to the work Any connection to officials or decision makers
WHY FEE PROPORTIONALITY
Fees substantially above the value of the service frequently fund something else.
WHAT TO BE ALERT TO
Success fees for obtaining approvals Reluctance to describe the work Requests for payment in unusual ways or places Insistence on being the only route Recommendations from the person making the decision
WHY THAT LAST POINT
An official recommending an agent is a serious indicator.
WHAT TO AGREE IN WRITING
The services, precisely The fee and its basis Compliance obligations The right to audit Termination for improper conduct
WHAT TO REQUIRE
Invoices describing the actual work.
WHAT TO ESTABLISH
That they will not make payments on your behalf without approval.
WHAT TO MONITOR
Their conduct, and unusual expense claims.
WHAT TO DO ON ANY INDICATION
Investigate, and terminate where warranted.
WHY PROMPTLY
Continuing after knowledge is far worse than the original act.
WHAT TO RECORD
Due diligence performed and decisions made.
