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Export Agreement Template for Malaysia

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Key Requirements PROMPT example:

Export Agreement

I need an export agreement for shipping electronic components from Malaysia to the European Union, ensuring compliance with local and international trade regulations, including clear terms on delivery schedules, payment methods, and liability for damages during transit. The agreement should also specify Incoterms and include a force majeure clause.

What is an Export Agreement?

An Export Agreement sets out the terms and conditions for selling goods internationally from Malaysia to foreign buyers. It spells out crucial details like product specifications, pricing, delivery schedules, and payment terms while ensuring compliance with Malaysian Customs Act 1967 and Strategic Trade Act 2010.

Beyond basic sales terms, these agreements protect Malaysian exporters by addressing key risks like currency fluctuations, shipping damage, and trade disputes. They typically include provisions for export licenses, quality inspections, and documentation requirements mandated by Malaysian customs authorities. Many Malaysian manufacturers use these agreements when exporting to ASEAN partners or other international markets.

When should you use an Export Agreement?

Use an Export Agreement anytime you plan to sell Malaysian goods to overseas buyers, especially before shipping samples or starting regular exports. These agreements become essential when dealing with new international customers, entering unfamiliar markets, or handling high-value exports that need clear terms and protection.

Put this agreement in place before finalizing pricing or delivery schedules with foreign buyers. It's particularly important for regulated products under Malaysian law, such as agricultural goods, manufactured items, or technology exports. The agreement helps prevent payment disputes, clarifies liability for damaged goods, and ensures compliance with Malaysian export regulations and customs requirements.

What are the different types of Export Agreement?

  • Basic Single-Shipment Agreements: Cover one-time export transactions with straightforward payment and delivery terms
  • Long-term Distribution Agreements: Structure ongoing export relationships with regular shipment schedules and volume commitments
  • Technology Export Agreements: Include special provisions for software, technical data, or controlled technology under Malaysian Strategic Trade controls
  • Manufacturing Export Agreements: Detail quality specifications, testing requirements, and compliance with international standards
  • Commodity Export Agreements: Focus on bulk goods pricing, quality grading, and specific agricultural or resource export regulations

Who should typically use an Export Agreement?

  • Malaysian Exporters: Manufacturing companies, trading firms, and producers who sell goods internationally and need to protect their interests
  • Foreign Buyers: International companies or distributors purchasing Malaysian products, who must agree to payment and delivery terms
  • Legal Counsel: Corporate lawyers who draft and review Export Agreements to ensure compliance with Malaysian and international trade laws
  • Customs Officials: Government officers who verify compliance with export regulations and documentation requirements
  • Trade Finance Banks: Financial institutions that handle international payments and letters of credit related to export transactions

How do you write an Export Agreement?

  • Product Details: Gather complete specifications, quantities, packaging requirements, and quality standards for export goods
  • Trade Terms: Decide on Incoterms, shipping method, delivery timeline, and payment conditions including currency and payment security
  • Legal Requirements: Check Malaysian export permit requirements, trade restrictions, and necessary certifications for your products
  • Party Information: Collect full company details, registration numbers, and authorized signatory information from both parties
  • Documentation: List required customs forms, certificates of origin, and inspection certificates
  • Draft Generation: Use our platform to create a legally-sound Export Agreement that includes all mandatory elements

What should be included in an Export Agreement?

  • Party Details: Full legal names, registration numbers, and addresses of both exporter and importer
  • Product Description: Detailed specifications, quantities, pricing, and quality standards of export goods
  • Trade Terms: Specific Incoterms, delivery schedule, shipping method, and transfer of risk provisions
  • Payment Terms: Currency, payment method, timing, and any letter of credit requirements
  • Compliance Clauses: References to Malaysian export laws, permits, and documentation requirements
  • Dispute Resolution: Choice of Malaysian law, jurisdiction, and arbitration procedures
  • Force Majeure: Events excusing non-performance under Malaysian contract principles

What's the difference between an Export Agreement and an Agency Agreement?

When comparing an Export Agreement with an Agency Agreement, it's crucial to understand their distinct purposes in international trade. While both deal with cross-border business, they serve fundamentally different functions in Malaysian commerce.

  • Purpose and Scope: Export Agreements focus on specific product sales and shipments abroad, while Agency Agreements establish ongoing relationships where an agent represents the company in foreign markets
  • Party Relationships: Export Agreements create direct seller-buyer relationships, whereas Agency Agreements involve a principal authorizing an agent to act on their behalf
  • Payment Structure: Export Agreements detail direct payment for goods, while Agency Agreements typically involve commission structures and performance incentives
  • Legal Obligations: Export Agreements focus on delivery and payment terms, while Agency Agreements emphasize representation rights, territory limitations, and agent duties under Malaysian agency laws

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