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Export Agreement Template for Indonesia

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Key Requirements PROMPT example:

Export Agreement

I need an export agreement for shipping agricultural products from Indonesia to Japan, including terms for payment in Japanese yen, compliance with both countries' regulations, and a clause for resolving disputes through arbitration in Singapore.

What is an Export Agreement?

An Export Agreement sets out the terms and conditions for selling goods from Indonesia to buyers in other countries. It covers essential details like product specifications, pricing, delivery schedules, and payment terms while ensuring compliance with Indonesian export regulations and customs requirements.

These agreements play a vital role under Indonesia's Export Trade Law No. 7/2014, helping businesses protect their interests when shipping internationally. They typically include provisions for quality inspections, shipping documentation, risk transfer, and dispute resolution methods - crucial elements for smooth cross-border transactions. For regulated commodities like minerals or agricultural products, the agreement must also address specific licensing and certification requirements.

When should you use an Export Agreement?

Use an Export Agreement whenever you're planning to sell and ship products from Indonesia to international buyers. This is especially important for first-time deals with new overseas partners or when handling high-value commodities like palm oil, textiles, or minerals that require special permits under Indonesian trade laws.

The agreement becomes crucial before finalizing any international sales arrangements, particularly when dealing with unique payment terms, complex shipping logistics, or products subject to export quotas. Companies engaged in regular export activities need these agreements to protect against payment defaults, quality disputes, and shipping delays while ensuring compliance with Indonesia's Export Trade Law No. 7/2014.

What are the different types of Export Agreement?

  • Basic Export Agreement: Covers standard international sales with straightforward payment and delivery terms, commonly used for consumer goods and routine exports.
  • Commodity-Specific Agreement: Tailored for regulated products like minerals or agricultural goods, incorporating Indonesia's specific export quotas and licensing requirements.
  • Long-Term Supply Agreement: Used for ongoing export relationships, featuring detailed volume commitments, price adjustment mechanisms, and extended contract periods.
  • Manufacturing Export Agreement: Includes detailed quality specifications, production timelines, and compliance with international manufacturing standards.
  • Distribution Export Agreement: Combines export terms with distribution rights in foreign markets, often used for branded Indonesian products.

Who should typically use an Export Agreement?

  • Indonesian Exporters: Manufacturing companies, agricultural producers, or trading firms that sell products internationally and need to document their export commitments.
  • Foreign Buyers: International companies or distributors purchasing Indonesian goods, who rely on these agreements to secure their supply chain.
  • Legal Counsel: Corporate lawyers who draft and review Export Agreements to ensure compliance with Indonesian trade laws and protect client interests.
  • Trade Officials: Government representatives who verify agreements meet export regulations and issue necessary permits.
  • Customs Brokers: Professionals who facilitate the export process and ensure documentation aligns with agreement terms.

How do you write an Export Agreement?

  • Product Details: Gather complete specifications, quantities, quality standards, and packaging requirements for the exported goods.
  • Export Licenses: Check required permits from Indonesia's Trade Ministry, especially for regulated commodities like minerals or agricultural products.
  • Payment Terms: Define payment method, currency, timing, and any letter of credit requirements.
  • Shipping Terms: Decide on Incoterms, delivery schedule, port of departure, and insurance requirements.
  • Compliance Check: Verify buyer's import permissions and any destination country restrictions.
  • Documentation: Our platform helps generate legally-sound Export Agreements with all mandatory elements included.

What should be included in an Export Agreement?

  • Party Details: Full legal names, registration numbers, and authorized representatives of both exporter and buyer.
  • Product Description: Detailed specifications, quantities, and quality standards as per Indonesian export regulations.
  • Payment Terms: Currency, payment method, timing, and documentary requirements under Indonesian banking laws.
  • Delivery Terms: Incoterms, shipping schedule, and transfer of risk provisions compliant with Trade Law No. 7/2014.
  • Export Compliance: Required permits, licenses, and certificates for specific commodity types.
  • Dispute Resolution: Choice of Indonesian law, jurisdiction, and arbitration procedures.
  • Force Majeure: Events excusing performance under Indonesian contract principles.

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 cross-border business, their scope and applications differ significantly.

  • Primary Purpose: Export Agreements focus on the direct sale and shipment of goods abroad, while Agency Agreements establish a relationship where an agent represents the exporter in foreign markets.
  • Legal Structure: Export Agreements are transaction-specific, detailing product specifications and delivery terms. Agency Agreements create ongoing representation rights and commission structures.
  • Regulatory Requirements: Export Agreements must comply with Indonesian export controls and customs regulations. Agency Agreements focus more on commercial representation laws and local agency regulations.
  • Risk Allocation: Export Agreements handle shipping risks and payment terms directly. Agency Agreements deal with marketing responsibilities and territory rights.

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