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Export Agreement
I need an export agreement for a Pakistani company exporting textiles to the European market, including terms for payment in euros, compliance with EU regulations, and a clause for resolving disputes through arbitration in a neutral country.
What is an Export Agreement?
An Export Agreement sets out the terms for selling and shipping goods from Pakistan to international buyers. It's a legally binding contract that covers everything from product specifications and pricing to delivery schedules and payment terms, helping exporters comply with the Export Policy Order and other trade regulations.
These agreements protect both Pakistani exporters and foreign buyers by clearly defining responsibilities, quality standards, and dispute resolution procedures. They're especially important for businesses dealing with key exports like textiles, agricultural products, and manufactured goods, as they help ensure smooth international trade while meeting State Bank of Pakistan's foreign exchange requirements.
When should you use an Export Agreement?
Use an Export Agreement anytime you plan to sell and ship goods from Pakistan to overseas buyers. This is essential when dealing with new international customers, high-value exports, or products subject to special regulations like textiles, surgical instruments, or agricultural commodities.
Put this agreement in place before accepting international orders or starting production runs for export. It's particularly important when working with letter of credit payments, meeting State Bank requirements, or navigating industry-specific trade rules. Having clear terms upfront prevents costly disputes and ensures compliance with Pakistan's export control laws.
What are the different types of Export Agreement?
- Basic Export Sale Agreement: Covers standard international trade terms, payment conditions, and delivery schedules - commonly used for straightforward product exports
- Distribution Export Agreement: Includes territory rights, marketing obligations, and ongoing supply terms for overseas distributors
- Manufacturing Export Agreement: Details production specifications, quality standards, and compliance requirements - vital for textile and industrial exports
- Agricultural Export Agreement: Focuses on crop-specific requirements, seasonal delivery terms, and food safety standards
- Technology Export Agreement: Addresses intellectual property rights, technical specifications, and dual-use restrictions for tech products
Who should typically use an Export Agreement?
- Pakistani Exporters: Manufacturing companies, agricultural producers, and trading firms who sell goods internationally and need to document their trade arrangements
- Foreign Buyers: International companies or distributors purchasing Pakistani goods, who require clear terms and conditions
- Trade Lawyers: Draft and review agreements to ensure compliance with both Pakistani and international trade laws
- Customs Officials: Reference these agreements when processing export documentation and ensuring regulatory compliance
- Banks: Use agreements to process letters of credit and handle international payments in line with State Bank requirements
How do you write an Export Agreement?
- Product Details: Gather complete specifications, quantities, and quality standards for the goods being exported
- Party Information: Collect full legal names, addresses, and registration details of both exporter and buyer
- Trade Terms: Decide on Incoterms, shipping arrangements, and delivery schedules
- Payment Structure: Define payment terms, currency, and banking arrangements that comply with State Bank guidelines
- Compliance Check: Review current Export Policy Order requirements for your specific product category
- Documentation: Prepare supporting documents like quality certificates, permits, and shipping documentation
What should be included in an Export Agreement?
- Party Details: Full legal names, addresses, and registration numbers of exporter and buyer
- Product Specifications: Detailed description, quantity, quality standards, and packaging requirements
- Price and Payment: Export value, currency, payment method, and letter of credit terms
- Delivery Terms: Incoterms, shipping details, transfer of risk, and inspection procedures
- Compliance Clauses: References to Export Policy Order and relevant trade regulations
- Dispute Resolution: Choice of Pakistani law, jurisdiction, and arbitration procedures
- Force Majeure: Provisions for unforeseen circumstances affecting contract performance
What's the difference between an Export Agreement and an Agency Agreement?
An Export Agreement differs significantly from an Agency Agreement, though both play important roles in international trade. Let's explore their key differences to help you choose the right document for your needs.
- Primary Purpose: Export Agreements focus on single or recurring sales of goods to foreign buyers, while Agency Agreements establish ongoing relationships with representatives who promote and sell products in foreign markets
- Party Relationships: Export Agreements create direct seller-buyer relationships, whereas Agency Agreement establishes intermediary relationships with agents who work on commission
- Legal Scope: Export Agreements cover specific transactions and deliveries, while Agency Agreements address broader marketing rights, territory exclusivity, and commission structures
- Duration: Export Agreements typically last until delivery completion, while Agency Agreements often establish longer-term collaborative relationships
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