Page 70 - LMGC Training Note

Buyer and Seller Agreements in Importing and Exporting

 Whether you’re importing or exporting goods, business agreements need to exist between the
person you’re buying from or selling to, and the following key points need to be included in those
agreements:
The products:

 You need to be clear about their exact specifications so that you know what you’re getting.
Sales targets:

 This includes things like order quantities and the frequency of shipments.

Territory:
 In which territory may the distributor sell? Will the distributor have exclusivity there?
Prices:

 What are the prices of the products and the allowable markups?

Payment terms:
 Will you use letter of credit, sight draft, open account, 30 days, consignment, and so on?

Shipping terms:
 Will your terms be free on board (FOB) airport; free alongside ship (FAS); cost and freight (C&F);
cost, insurance, and freight (CIF); and so on?