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Export Agreement
I need an export agreement for shipping dairy products from New Zealand to Japan, including terms for payment in Japanese yen, compliance with both countries' regulations, and a clause for resolving disputes through arbitration in New Zealand.
What is an Export Agreement?
An Export Agreement sets out the legal terms when a New Zealand business sells and ships goods to overseas buyers. It covers essential details like pricing, delivery schedules, payment terms, and who bears the risk during international transport. These contracts must align with both NZ export regulations and international trade laws like Incoterms.
Kiwi exporters use these agreements to protect their interests and ensure smooth trading relationships. The agreement typically includes specific clauses about product quality standards, customs documentation, and dispute resolution methods. It's particularly important for businesses exporting primary products, manufactured goods, or technology under the Customs and Excise Act 2018.
When should you use an Export Agreement?
Use an Export Agreement before shipping any commercial goods from New Zealand to international buyers. This is especially crucial when dealing with high-value products, new trading partners, or markets with complex regulations. Having clear terms in place protects both parties and helps avoid costly disputes later.
The agreement becomes vital when exporting perishable goods, specialized equipment, or products requiring specific handling conditions. It's particularly important for transactions involving staged payments, multiple shipments, or when complying with industry-specific requirements under NZ export laws. Getting these terms documented early helps prevent misunderstandings about delivery times, quality standards, and payment obligations.
What are the different types of Export Agreement?
- Export Sales Contract: Basic template focused on one-time product sales, covering essential terms like pricing and delivery.
- Import And Export Contract: Comprehensive agreement for businesses handling both importing and exporting, with dual-direction trade provisions.
- Agreement For Export Of Goods: Detailed template emphasizing product specifications and quality standards, ideal for manufacturing exports.
- Contract For Export Of Goods: Framework agreement suited for ongoing export relationships with multiple shipments over time.
Who should typically use an Export Agreement?
- NZ Export Companies: Manufacturing firms, primary producers, and tech companies who sell products overseas and need to protect their interests during international sales.
- International Buyers: Foreign businesses or distributors purchasing goods from New Zealand exporters, often requiring specific terms for their market.
- Trade Lawyers: Legal professionals who draft and review Export Agreements to ensure compliance with both NZ and international trade laws.
- Customs Brokers: Specialists who help ensure the agreement aligns with customs requirements and export documentation.
- Industry Bodies: Organizations like NZ Trade and Enterprise that provide guidance and support for export documentation.
How do you write an Export Agreement?
- Basic Details: Gather complete company information for both parties, including registration numbers and authorized signatories.
- Product Specifics: Document exact quantities, specifications, packaging requirements, and quality standards.
- Trade Terms: Decide on Incoterms, shipping arrangements, and delivery schedules.
- Payment Structure: Outline pricing, currency, payment terms, and any letter of credit requirements.
- Compliance Check: Verify export permits, licenses, and customs requirements for your specific goods.
- Risk Management: Consider insurance needs, dispute resolution methods, and force majeure provisions.
What should be included in an Export Agreement?
- Party Details: Full legal names, addresses, and registration numbers of exporter and importer.
- Product Description: Detailed specifications, quantities, and quality standards of goods being exported.
- Commercial Terms: Pricing, payment terms, currency, and delivery schedules.
- Incoterms: Clearly specified international trade terms defining responsibilities and risks.
- Compliance Clauses: References to NZ Customs and Excise Act 2018 and relevant export regulations.
- Dispute Resolution: Choice of law, jurisdiction, and arbitration provisions under NZ law.
- Force Majeure: Circumstances excusing performance under NZ contract principles.
What's the difference between an Export Agreement and an Agency Agreement?
The key differences between an Export Agreement and an Agency Agreement often cause confusion for New Zealand businesses engaged in international trade. While both deal with international commerce, their purposes and scope differ significantly.
- Core Purpose: Export Agreements focus on single or recurring sales of goods to overseas buyers, while Agency Agreements establish ongoing relationships with representatives who promote and sell products in foreign markets.
- Party Relationships: Export Agreements create direct seller-buyer relationships, whereas Agency Agreements involve appointing intermediaries who act on behalf of the exporter.
- Payment Structure: Export Agreements specify direct payment terms for goods, while Agency Agreements typically include commission structures and performance targets.
- Legal Obligations: Export Agreements focus on delivery and payment terms, while Agency Agreements address representation rights, territory restrictions, and ongoing service obligations under NZ agency law.
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