The Export Commission Agent Agreement is essential for Indian companies seeking to expand their international market presence through appointed representatives. This document is typically used when a company wishes to engage an agent to promote and facilitate export sales in specific foreign territories without establishing their own local presence. The agreement comprehensively covers appointment terms, territorial rights, commission structures, compliance requirements, and operational procedures. It must comply with Indian laws including the Foreign Exchange Management Act (FEMA), Foreign Trade (Development and Regulation) Act, and export regulations. The document is crucial for protecting both parties' interests while ensuring clear understanding of responsibilities, performance expectations, and payment terms in international trade relationships.
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1. Parties: Identification of the Principal (exporter) and the Commission Agent, including full legal names, registration details, and addresses
2. Background: Context of the agreement, including the Principal's business nature and desire to appoint an agent for export promotion
3. Definitions: Key terms used in the agreement, including Territory, Products, Customers, Commission, etc.
4. Appointment and Territory: Formal appointment of the agent and definition of the geographical territory covered
5. Scope of Authority: Detailed description of agent's powers, limitations, and responsibilities
6. Term and Termination: Duration of the agreement and conditions for termination
7. Commission Structure: Detailed breakdown of commission rates, calculation method, and payment terms
8. Rights and Obligations of the Agent: Specific duties, responsibilities, and performance expectations of the agent
9. Rights and Obligations of the Principal: Principal's commitments, support obligations, and responsibilities
10. Compliance Requirements: Export regulations, documentation, and compliance obligations
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition: Restrictions on agent's ability to represent competing products/businesses
13. Indemnification: Mutual indemnification provisions for various risks and liabilities
14. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
15. Dispute Resolution: Process for resolving disputes, including arbitration provisions
16. General Provisions: Standard boilerplate clauses including force majeure, notices, amendments, etc.
1. Performance Targets: Specific sales targets and performance metrics, used when the principal wants to ensure minimum performance levels
2. Training and Support: Details of training and support provided by principal, relevant when complex products or services are involved
3. Insurance Requirements: Specific insurance obligations, important for high-value or high-risk products
4. Intellectual Property Rights: Detailed IP provisions, necessary when the agent will be handling branded products or proprietary information
5. Sub-Agents: Provisions regarding appointment of sub-agents, useful when territory is large or complex
6. Marketing and Promotion: Specific requirements for marketing activities, relevant when agent is responsible for promotion
7. Post-Termination Obligations: Detailed post-termination requirements, important for complex long-term relationships
8. Compliance with Anti-Corruption Laws: Detailed anti-corruption provisions, essential when dealing with government contracts or high-risk territories
1. Schedule 1 - Products: Detailed list of products covered under the agreement
2. Schedule 2 - Territory: Detailed description of geographical territories and any exclusions
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule 4 - Performance Metrics: Specific performance targets and evaluation criteria
5. Schedule 5 - Compliance Checklist: List of required export documentation and compliance requirements
6. Schedule 6 - Approved Customers: List of pre-approved customers or customer categories if applicable
7. Appendix A - Standard Operating Procedures: Detailed procedures for order processing, documentation, and reporting
8. Appendix B - Reporting Templates: Standard formats for various reports required from the agent
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