Customs attorney, what types of export contracts are there?

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customs attorney

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作者: 김국일

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

An export contract refers to a contract to export goods or services to other countries, and the main types of export contracts are as follows.

1. Sales contract

This is the most common type of export contract, where the exporter sells goods to the importer. The sales contract includes specific clauses related to the price of goods, delivery conditions, and payment methods, and defines the basic transaction conditions between the two parties.

2. Agency contract

An agency contract is a contract in which the exporter places an agent in their home country to sell their goods in the overseas market. Agency contracts are mainly concluded when ongoing sales relationships are needed.

3. Distributor contract

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

That is, the distributor purchases the exporter's goods in bulk, holds them as their own inventory, and directly sells them in the relevant country with the exporter's trademark attached.

4. License contract

A license contract is a contract that allows the exporter to permit a foreign company to use their intellectual property rights.

License contracts are a method of supplying products or technology overseas, 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 date of goods to be supplied for a specific period.

It often establishes a long-term supply relationship, and is mainly used when continuous supply is needed for raw materials, parts, etc.

It can be difficult to judge individually as such export contracts are selected by reflecting the nature of the transaction, the exporter's goals, and the importer's requirements, so please seek the assistance of a customs attorney to conclude an effective export contract.