Whether you’re an importer or exporter of goods, having an Import/Export Agreement in place is essential for securing your commercial deals.
An Import/Export Agreement will protect your business when dealing with overseas businesses — ensuring that the terms on which the importation is occurring are clear to both parties.
What Is An Import/Export Agreement?
Import/Export Agreements are sometimes referred to as Distribution Agreements.
These kinds of agreements are drafted between businesses when one is purchasing goods from overseas by way of import.
The party providing the goods is the exporter and the company purchasing the goods is known as the importer.
While Import/Export Agreements cover these types of agreements in an international context, Distribution Agreements are suitable for both international and domestic business relations.
When Do I Need An Import/Export Agreement?
An Import/Export contract is needed if you’re a business looking to purchase goods from an overseas supplier or manufacturer.
|How does it work? An example |
Raj has recently started his own distribution company where he provides different styles of crockery to stores all around Australia.
He finds a company based in Japan that manufacturers the crockery which he wishes to distribute to his clients.
In this circumstance, Raj will need an Import/Export Agreement between his company and the Japanese company which is going to export the goods to Raj.
What’s Included In An Import/Export Agreement?
An Import/Export Agreement will include a range of clauses to protect your business.
Common clauses included in an Import/Export Agreement include:
- Payment: How will the exporter accept payment for the goods and services they are providing?
- Time: How long will this commercial relationship run for?
- Renewal: Will there be an opportunity to renew the terms of the agreement? If the agreement is extended, will there be associated costs?
- Limitation of Liability: Who is responsible if things go wrong?
- Termination: If the business relationship turns sour, how can the Agreement be terminated?
Need Help With An Import/Export Agreement?
A well-drafted Import/Export Agreement will protect your commercial relationships with overseas companies.
Having a lawyer draft your Import/Export Agreement will ensure you’re setting out clear terms on which you’re engaging with an overseas company on an import/export basis.
At Sprintlaw, we focus on drafting easy to understand and comprehensive contracts for many businesses.
Feel free to get in touch with us to have a chat about your business and to talk through your questions about Import/Export Agreements. You can reach us by giving us a call on 1800 730 617 or via email at firstname.lastname@example.org
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