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Customs Broker Agreement for Malaysia

Customs Broker Agreement Template for Malaysia

This document establishes a formal agreement between a business entity and a licensed customs broker in Malaysia, governed by Malaysian law including the Customs Act 1967 and related regulations. The agreement outlines the terms and conditions under which the customs broker will provide customs clearance services, manage documentation, facilitate communication with customs authorities, and ensure compliance with Malaysian customs regulations. It includes provisions for service scope, fees, liabilities, compliance requirements, and operational procedures specific to the Malaysian customs environment.

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What is a Customs Broker Agreement?

The Customs Broker Agreement is essential for businesses engaging in international trade activities in Malaysia. This document is required when a company needs to appoint a licensed customs broker to handle customs clearance procedures, documentation, and compliance with Malaysian customs regulations. The agreement becomes necessary when businesses lack in-house customs expertise or require professional assistance in navigating complex customs procedures. It is particularly important given Malaysia's strict customs regulations and the need for compliance with the Customs Act 1967 and related legislation. The document typically includes detailed provisions about service scope, responsibilities, customs procedures, documentation requirements, and liability allocation, ensuring both parties understand their roles and obligations in the customs clearance process.

What sections should be included in a Customs Broker Agreement?

1. Parties: Identification of the Client and the Customs Broker, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the broker's licensing status and the client's need for customs services

3. Definitions: Definitions of key terms used throughout the agreement, including technical customs terminology

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of core services to be provided

5. Broker's Obligations: Key responsibilities of the broker including compliance, documentation, and communication requirements

6. Client's Obligations: Client's responsibilities including providing accurate information, necessary documentation, and timely responses

7. Fees and Payment Terms: Structure of fees, payment schedule, and handling of disbursements

8. Compliance and Regulations: Commitment to comply with relevant customs laws, trade regulations, and anti-money laundering requirements

9. Representations and Warranties: Standard warranties regarding capacity, authority, and compliance with laws

10. Liability and Indemnification: Allocation of risk and responsibility for losses, including indemnification provisions

11. Confidentiality: Protection of confidential information exchanged during the course of services

12. Term and Termination: Duration of the agreement and circumstances for termination

13. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

What sections are optional to include in a Customs Broker Agreement?

1. Special Services: Additional services beyond standard customs clearance, such as consulting or specialized handling

2. Insurance Requirements: Specific insurance obligations beyond standard coverage, used for high-value or high-risk shipments

3. Performance Metrics: Specific KPIs and service levels, used in larger volume relationships

4. Disaster Recovery: Business continuity provisions, important for critical supply chains

5. Data Protection: Enhanced data protection provisions when handling sensitive information

6. Customs Bond Provisions: Specific provisions regarding customs bonds when required

7. Electronic Systems Access: Terms for access to client or broker's electronic systems

8. Training and Support: Provisions for training client staff on customs procedures

What schedules should be included in a Customs Broker Agreement?

1. Schedule of Services: Detailed list of specific services covered under the agreement

2. Schedule of Fees: Comprehensive fee structure including standard rates and special handling charges

3. Power of Attorney: Standard form of authorization for the broker to act on behalf of the client

4. Operating Procedures: Detailed procedures for day-to-day operations and communication

5. Contact Information: List of key contacts and escalation procedures

6. Required Documentation: Ƶ and examples of required customs documentation

7. Compliance Checklist: Checklist of regulatory requirements and compliance procedures

8. Service Level Agreement: Detailed performance metrics and service standards

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Manufacturing

International Trade

Retail

Logistics and Transportation

E-commerce

Automotive

Electronics

Pharmaceuticals

Food and Beverage

Textile and Apparel

Chemical Industry

Agriculture

Relevant Teams

Legal

Supply Chain

Logistics

Procurement

Finance

Compliance

International Trade Operations

Risk Management

Shipping

Documentation

Relevant Roles

Supply Chain Manager

Import/Export Manager

Logistics Manager

Compliance Officer

Trade Operations Manager

Procurement Manager

Customs Compliance Specialist

International Trade Director

Operations Manager

Legal Counsel

Risk Manager

Finance Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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