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Contracting agreement with overseas manufacturer

Veteran

Christianah Adesida Lorton, VA

Do anyone have an idea what to include in a contract agreement with a manufacturer overseas as a key clause?

16 January 2015 4 replies Small Business

Answers

Advisor

Paul Holzschuher Lebanon, OH

My question is why purchase products from overseas?
Have investigated US based manufactures?
Importing products has risks and hidden costs.

The decision of buying local or importing should based on total cost, delivery time, product quality and ease of returns.
1. Total cost, should include your time to order, cost of transport [including insurance], maybe customs issue depending on the product type and etc.
2. Delivery time, if local is one delivery a week, will import be one a week or one a month or other? If one a month, do you have warehouse space.
3. Product quality, imported product could be damaged in shipment, if food product not stored correctly, not what you ordered and etc.
4. Ease of Return, assume buying local the return is easy. Will Taiwan supplier take back product that was missed shipped or made wrong?

Feel free to contact me at anytime.
Thanks,
Paul Holzschuher

Advisor

Charles Coley Blowing Rock, NC

I suggest that you have a lawyer to draft a contract to protect you that is enforceable in the US. Trying to collect your money from a company in a foreign country can be difficult. I would also suggest you get information from the US Dept. of Commerce.

Good luck!
Charles Coley

Advisor

Bruce Cohen Fort Lauderdale, FL

Does the contract agreement call for you to sell their product and where? How will you be paid, what is your territory, are there different terms of commission for different products/
If you are a buyer of goods under this contract then the best way to do that is with an LC written by your bank that spells out the terms and conditions under which your overseas manufacturer gets paid.
If you clarify this for me I should be able to help . Visit www.lcafunding.com . I am bcohen@lcafunding.com . This is not a sales pitch, just look at the site and see if I can be of further assistance.

Advisor

Neil Serafin Easthampton, MA

How will you be paid? In U.S. dollars? In local currency? If paid in local currency or U.S. dollars will your income change as the exchange rate changes? Good luck. I worked for a Japanese manufacture company. A good time, however since I was not a Japanese dude, I felt I was not thoroughly trusted by upper management.

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