Import Exclusivity Agreement

The client grants exclusivity to the agent, which means that he undertakes not to appoint other agents in the territory (and on advertising channels) for the duration of this contract. `17.4 However, if the parties do not reach agreement on the requested revision within the [time limit], exclusivity agreements shall not prevent the importation of the same products by agents outside the marketing chain. Nor do they prevent parallel imports that occur when an economic operator imports and sells goods in an area granted to a distributor by an exclusivity agreement – offering the same products to consumers, but generally at a lower price. In order to provide common terminology for international shipping and minimize misunderstandings about contractual terms, the International Chamber of Commerce has developed a number of concepts known as Incoterms. These are the basic terms used in international sales contracts that describe the liability of the seller and the buyer (transfer of danger from the buyer to the seller). It is an importer to know the effects of the terms used in a given contract (FOB, CIF, etc.). It is rare for the importer to accept the exporter`s first offer and, normally, this first offer is followed by a series of counter-offers sent between the exporter and the importer until each party is satisfied with the conditions set out in the final offer and agrees to comply with them. The distributor shall fix the selling price and royalties at which it sells or licenses the supplier products in the territory. The distributor is solely responsible for the costs related to the distribution of the supplier products, including selling costs, import duties, all bank charges, shipping and processing costs, installation or other operating costs, accreditation fees, transfer fees and other payment-related fees, as well as taxes, except for the fact that the merchant is not held responsible for taxes based on the supplier`s income. Independent distributors should therefore strengthen the system of guarantees that are not granted by informal importers. Among the advantages offered by exclusive resellers are after-sales services, goodwill of the brand and the guarantee that the product is original.

Such guarantees should encourage consumers to buy products from distributors alone.