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Export Agreement
"I need an export agreement for shipping electronics from the UK to Germany, including terms for delivery within 30 days, payment in GBP, and compliance with UK and EU regulations. The agreement should specify liability for damages and include an arbitration clause for disputes."
What is an Export Agreement?
An Export Agreement sets out the terms for selling and shipping goods from the UK to overseas buyers. These contracts handle crucial details like delivery schedules, payment terms, and which party takes responsibility for customs clearance, duties, and export licenses under British trade regulations.
Beyond basic sales terms, these agreements protect UK exporters by addressing currency risks, compliance with international trade rules, and specific requirements of destination countries. They typically include clauses about product specifications, quality standards, and what happens if shipments face delays or customs issues - essential safeguards for cross-border trade under English commercial law.
When should you use an Export Agreement?
Use an Export Agreement anytime you plan to sell and ship goods outside the UK. This becomes essential when dealing with new international customers, entering unfamiliar markets, or handling high-value exports where clear terms protect both parties. The timing matters most before finalizing any overseas sales arrangements.
Many UK businesses need these agreements when expanding into EU markets post-Brexit, or when exporting specialized goods that require specific permits or licenses. They're particularly important for regulated products, perishable items, or when dealing with complex shipping arrangements across multiple jurisdictions. Having this agreement in place before shipment prevents costly disputes and ensures compliance with UK export controls.
What are the different types of Export Agreement?
- Basic Export Sales: Covers straightforward product sales abroad with standard payment and delivery terms
- Distribution Export Agreements: Used when working with overseas distributors, including territory rights and performance targets
- Technology Export Agreements: Specifically designed for software, tech products, or IP-heavy goods with additional data protection clauses
- Regulated Goods Export: Contains extra compliance provisions for controlled items like chemicals, pharmaceuticals, or dual-use goods
- Framework Export Agreements: Sets up long-term arrangements with repeat buyers, including pricing structures and regular shipment schedules
Who should typically use an Export Agreement?
- UK Exporters: Manufacturing companies, tech firms, and trading businesses that sell goods internationally and need to protect their interests
- International Buyers: Foreign companies or distributors purchasing goods from UK suppliers, who must comply with import regulations in their countries
- Legal Counsel: In-house or external solicitors who draft and review Export Agreements to ensure compliance with UK trade laws
- Trade Compliance Officers: Company representatives responsible for ensuring export controls and licensing requirements are met
- Freight Forwarders: Logistics companies named in agreements to handle shipping, customs clearance, and documentation
How do you write an Export Agreement?
- Product Details: Gather specifications, quantities, pricing, and any special handling requirements for the goods
- Buyer Information: Collect full company details, registration numbers, and contact information of your overseas buyer
- Export Controls: Check if your goods need special licenses or permits under UK export regulations
- Delivery Terms: Decide on Incoterms, shipping methods, and specific delivery timeframes
- Payment Structure: Define payment terms, currency, and any letter of credit requirements
- Compliance Check: Review trade restrictions and sanctions for the destination country
- Documentation: Prepare customs forms, certificates of origin, and quality certificates
What should be included in an Export Agreement?
- Party Details: Full legal names, addresses, and registration numbers of exporter and buyer
- Product Description: Detailed specifications, quantities, and quality standards of goods being exported
- Payment Terms: Price, currency, payment method, and timing of payments
- Delivery Terms: Incoterms, shipping arrangements, and transfer of risk provisions
- Export Controls: Compliance with UK export regulations and required licenses
- Force Majeure: Provisions for unforeseen circumstances affecting performance
- Governing Law: Explicit choice of English law and jurisdiction
- Dispute Resolution: Agreed methods for handling disagreements and arbitration procedures
What's the difference between an Export Agreement and an Access Agreement?
Export Agreements are often confused with Agency Agreements, but they serve distinct purposes in international trade. While both deal with overseas business, their core functions and legal implications differ significantly.
- Primary Focus: Export Agreements handle direct sales and shipment of goods abroad, while Agency Agreement establishes a relationship with someone to represent your business in foreign markets
- Legal Structure: Export Agreements detail specific transactions, including delivery terms and customs requirements. Agency Agreements instead outline ongoing representation rights, commission structures, and territory limitations
- Risk Management: Export Agreements concentrate on shipment risks, product compliance, and payment security. Agency Agreements focus on protecting brand reputation and controlling how your business is represented
- Duration: Export Agreements typically cover specific shipments or fixed-term supply arrangements, while Agency Agreements establish longer-term business relationships
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