Export-Import Management (520135)

Chapter – 03
(Agents and Distributors)
Lecture- 11

Conducted By :
Lata Akter
Lecturer
Department Of Business Administration
Dhaka City College
 Topics to be discussed……..

 Ways of Termination of Commission Agent

 Locating Foreign Representative

 Export Contract

 Essential Elements of an Export Contract

 Ways of Termination of Commission Agent

1. By Agreement 6. Insolvency of principal

2. By Notice
3.By the Completion of Agency
4. By Expiry of the Time
5. Death or Insanity of Principal or
Agent
7. Destruction of the subject matter
8. Principal becoming an alien
enemy
9. Dissolution of company or firm.
 Locating Foreign Representative
The most important thing to establish is that an agent or distributor has proven experience in
your target market. But there are many other factors to consider:
 Are they well located, with the geographical coverage you need?
 Are they well established in the market, and how do they compare with their own
competition?
 Look at the product lines they currently sell - will your product fit in well?
 Ask about their strategy for the next five years - does it fit well with your objectives in the
market?
 How large and experienced is their sales team? Is it well managed and given effective
incentives?
 Can they provide you with market research to feed into your sales forecasts?
 Do they have the warehousing, servicing and other facilities you're looking for?
It's also important to look into their financial standing to ensure you're dealing with a
reputable business that can be relied upon to pay you. This can be more difficult with
overseas businesses, but it may be possible to conduct a status query through your bank.
 Export Contract

The export contract is used for the international sale of certain products (industrial supplies,

raw materials, manufactured goods), which are projected for resale, where the buyer is a

trader, importer, distributor or wholesaler that will sell the products to another company or

merchant. Though it is common practice to export products based a proforma invoice or

quotation received from exporters, it is a safe practice to use written and legal export

contracts.
 Essential Elements of an Export Contract
 Products, standards and specifications.
 Units of measure in both figures and words.
 Total value. The total contract value in words and figures, and in a specific currency.
 Terms of delivery. And Delay in delivery.
 Terms of payment: amount, mode and currency.
 Documentary requirements.
 Insurance of goods against loss, damage or destruction during transportation.
 Provisions in the contract defining circumstances that would relieve partners of their liability for
non-performance of the contract.
 Taxes, duties and charges.
 Packaging, labeling and marking.
 Discounts and commissions
 Arbitration clause to facilitate amicable and quick settlement of disputes or differences that may
arise between the parties.
Thank You