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Export Agreement
"I need an export agreement for shipping 500 units of electronics monthly from China to Germany, with a delivery timeline of 30 days, payment terms of net 60, and compliance with EU regulations."
What is an Export Agreement?
An Export Agreement is a legally binding contract between a Philippine supplier and an overseas buyer that sets the terms for selling and shipping goods internationally. It outlines crucial details like product specifications, quantities, pricing, delivery schedules, and payment terms while ensuring compliance with Philippine export regulations and customs requirements.
These agreements play a vital role in protecting both parties under international trade laws, particularly through the Bureau of Customs and Philippine Economic Zone Authority guidelines. They typically include provisions for quality standards, export documentation, risk transfer, dispute resolution, and specific requirements for regulated products like agricultural goods or manufactured items.
When should you use an Export Agreement?
Use an Export Agreement when your business starts selling products to international buyers from the Philippines. This document becomes essential before shipping any goods abroad, especially for first-time transactions with new foreign customers or when dealing with high-value exports requiring Bureau of Customs clearance.
It's particularly important for regulated products like agricultural goods, electronics, or textiles that need special permits from agencies like PEZA or BOC. The agreement helps prevent payment disputes, clarifies shipping responsibilities, and ensures compliance with both Philippine export regulations and international trade requirements. Many banks also require it for trade financing or letters of credit.
What are the different types of Export Agreement?
- Standard Export Sales Agreement: Covers basic international trade terms, payment conditions, and delivery requirements - commonly used for straightforward product exports
- Distributor Export Agreement: Details exclusive territory rights, minimum purchase commitments, and marketing obligations for overseas distribution partnerships
- Manufacturing Export Agreement: Includes product specifications, quality control standards, and production timelines - typically used by Philippine manufacturers
- Agricultural Export Agreement: Contains specific provisions for perishable goods, phytosanitary requirements, and Department of Agriculture compliance
- Free Trade Zone Export Agreement: Tailored for PEZA-registered companies with special customs provisions and tax considerations
Who should typically use an Export Agreement?
- Philippine Exporters: Companies or manufacturers selling goods internationally, responsible for ensuring product quality and export compliance
- International Buyers: Foreign companies or distributors purchasing Philippine products, who agree to payment terms and import responsibilities
- Legal Counsel: Lawyers who draft and review Export Agreements to ensure compliance with both Philippine and international trade laws
- Customs Brokers: Licensed professionals who handle documentation and clearance procedures with the Bureau of Customs
- Bank Officials: Financial institutions that process letters of credit and international payments based on agreement terms
How do you write an Export Agreement?
- Product Details: Gather complete specifications, quantities, packaging requirements, and quality standards for export items
- Company Information: Collect legal names, registration numbers, and contact details of both Philippine exporter and foreign buyer
- Export Requirements: Check necessary permits from BOC, PEZA, or other relevant agencies for your specific product category
- Payment Terms: Define payment method, currency, credit terms, and banking arrangements for international transactions
- Shipping Terms: Specify Incoterms, delivery schedules, transport mode, and insurance requirements
- Compliance Check: Review trade restrictions, customs duties, and documentary requirements for both countries
What should be included in an Export Agreement?
- Parties and Scope: Complete legal names, addresses, and detailed description of export goods and services
- Price and Payment: Clear pricing structure, payment terms, currency, and banking arrangements
- Delivery Terms: Specific Incoterms, shipping details, and transfer of risk provisions
- Quality Standards: Product specifications, inspection procedures, and warranty conditions
- Compliance Clauses: References to Philippine export laws, customs requirements, and trade regulations
- Dispute Resolution: Choice of law, jurisdiction, and arbitration procedures under Philippine laws
- Force Majeure: Provisions for unforeseen circumstances affecting contract performance
What's the difference between an Export Agreement and an Agency Agreement?
An Export Agreement differs significantly from an Agency Agreement, though both are used in international trade. While Export Agreements focus on direct sales transactions between Philippine exporters and foreign buyers, Agency Agreements establish ongoing relationships with representatives who facilitate these trades.
- Scope of Authority: Export Agreements detail specific product sales and deliveries, while Agency Agreements outline an agent's rights to represent the exporter in foreign markets
- Payment Structure: Export Agreements specify direct payment terms for goods, whereas Agency Agreements typically include commission structures and performance targets
- Duration: Export Agreements often cover specific shipments or periods, while Agency Agreements establish longer-term relationships
- Legal Obligations: Export Agreements focus on trade compliance and delivery terms, while Agency Agreements emphasize representation rights and territorial exclusivity
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