Includes typical use of agents and distributors and how to find a good partner, e.g., whether use of an agent or distributor is legally required.

While it is not legally required to use an agent or distributor, a well-selected one can be a vital asset in uncovering and approaching commercial opportunities throughout Finland, and providing the level of attention and service often expected by Finnish customers. Consumer goods and similar merchandise can be sold directly to retail chains, department stores, and other retail outlets, but are more often imported through wholesalers or trading houses. Goods requiring specialty installation, engineering, and maintenance/after sales service are often sold through engineering service firms, consultancies, and other professional service providers. Due to the small size of the Finnish market, and the interconnectedness of Finland with other Nordic markets, it is common to appoint one or more agents or distributors to cover the entire Finnish, or even Nordic, market. Agents/distributors in Finland and the Nordic countries often represent several foreign firms, and it can be difficult to find an agent/representative that is qualified and experienced in a given market segment that does not already represent competing products.
Finns tend to prefer to do business with people they know and trust. A visit to Finland to meet with prospective agents/distributors prior to doing business is often needed to assess the suitability of each prospect and to begin the process of developing the customary level of familiarity and trust. An increasing body of information available online can assist in identifying and contacting prospective agents/distributors prior to such a visit. The Finnish Commerce Federation, while on the one hand identifying itself as a lobbying organization, also serves as a central organization of 2200 companies and trade associations covering the bulk of foreign goods sold to Finnish trade and industry, http://Finnish Commerce Federation. It is a member of the Confederation of Finnish Industries (EK), which represents the Finnish industry through its 25 member associations, https://Confederation of Finnish Industries. The Finnish Foreign Trade Agent’s Federation (FFTAF), http://Association Trade Partners Finland, provides fee-based services for creating trade partnerships with their membership of agents, distributors and importers. Additionally, Internationally United Agents and Brokers (IUCAB) https://IUCAB, provides fee-based access to its database, which serves as a B2B platform for establishing business relations between manufacturers/suppliers and commercial agents from around the world, including Finland.
Most Finnish importers attend major trade fairs in Europe and the United States to find new products and ideas, and new firms and brands to represent. Visit http://European Trade Shows to find European trade shows and https://www.expodatabase.com/aussteller/messen/index.php?timer=m1539592511&i_cpid=6146&i_cockpitkeywo=USA&i_cockpitkeyfindwo=2&i_cockpitkeyfindart=1&sortierid=0&timer=m1539592511&maxPerPage=20&i_land[]=177 to find trade shows in the United States.
Not all Finnish agents or distributors are members of the above mentioned associations. Furthermore, many Finnish firms are circumspect and unresponsive to unsolicited approaches from overseas. To overcome challenges in the identifying and meeting prospective agents/representatives, the U.S. Commercial Service in Finland offers services to U.S. exporters such as the International Partner Search (IPS), the Gold Key Service (GKS), and other networking and matchmaking activities, https://Services for U.S. exporters.
Companies wishing to use distribution, franchising, and agency arrangements need to ensure that the agreements they put into place are in accordance with EU and member state national laws. Council Directive 86/653/EEC establishes certain minimum standards of protection for self-employed commercial agents who sell or purchase goods on behalf of their principals.  The Directive establishes the rights and obligations of the principal and its agents, the agent’s remuneration, and the conclusion and termination of an agency contract.  It also establishes the notice to be given and indemnity or compensation to be paid to the agent. U.S. companies should be particularly aware that according to the Directive, parties may not derogate from certain requirements. Accordingly, the inclusion of a clause specifying an alternate body of law to be applied in the event of a dispute will likely be ruled invalid by European courts.
 

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.