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Customs attorney, what forms of export contract are there?

Could I get the assistance of a customs attorney? I run a company, and its scale is gradually growing. I would like to conclude export contracts using the world beyond Korea as a foothold. I would like to know what contract forms should generally be considered when concluding an export contract and what the characteristics of each are.

customs attorney

Answer

Published: 2023-04-07

Author : Kuk Il KIM

Hello. I am a customs attorney at Daeryun Law LLC.

An export contract refers to a contract for exporting goods or services to another country, and the main forms of export contract are as follows.

1. Sales contract

This is the most common form of export contract, a contract in which the exporter sells goods to the importer. A sales contract includes specific provisions relating to the price of the goods, the delivery terms, and the payment method, and it defines the basic transaction terms between the two parties.

2. Agency contract

An agency contract is a contract in which the exporter appoints an agent to sell its goods in overseas markets. An agency contract is concluded mainly when an ongoing sales relationship is needed.

3. Distributor contract

A distributor contract is similar to an agency contract, but it is a form in which the distributor purchases the goods directly and sells them.

In other words, the distributor purchases the exporter's goods in bulk, holds them as its own inventory, and sells them directly within the country in question under the exporter's trademark.

4. License contract

A license contract is a contract in which the exporter permits a foreign company to use its intellectual property rights.

A license contract is a method of supplying a product or technology abroad, and it is often based on royalties.

5. Supply contract

A supply contract is a contract in which the exporter regularly supplies goods to the importer. This contract specifies the type, quantity, price, and delivery deadline of the goods to be supplied during a specific period.

It often establishes a long-term supply relationship and is used mainly where a continuous supply of raw materials, components, and the like is needed.

Such an export contract is chosen by reflecting the nature of the transaction, the exporter's objectives, and the importer's requirements, and because it can be difficult for an individual to judge, we recommend seeking the assistance of a customs attorney to conclude an effective export contract.