Supply Agreement With Chinese Company

Posted by Admin on Apr 12, 2021 in Uncategorized |

This is particularly relevant if it would take a long time to start development with a new supplier and/or replace custom shapes and tools. This manufacturing agreement is intended to be used by a company that owns the rights to a product and wishes to appoint/compete a manufacturer to manufacture these products or possibly components intended to be incorporated into other products of the licensee. . The manufacturer cannot deliver the product to the licensee who places orders when the product is needed. “Five years ago, I would have laughed at the idea of a contract. However, since we restarted the company in 2015, we are more systematized and we see more value in creating contracts. If you see a document in Chinese that refers to Chinese law, designed by a Chinese lawyer or company and bearing an official red seal, that is another story; you know you take intellectual property protection very seriously. Section 13 is fairly simple and deals with what is included in the price, transportation costs and billing and payment procedure. The licensee must keep detailed records of its costs and, if necessary, make them available for consultation. The real value is that it helps the organization, it is used as a directive and focus on quality control.

It should give the plant and customers the same expectations as to how production will flow and how the product will spill,” said Michael Schierhorn, (aka ChinaMike in the community) my business partner with 8 years of on-site sourcing experience in China. These include procedures for modifying orders requested by the licensee. Both parties should work within a specified time frame and that the licensee`s final decision be made only after the manufacturer has had an impact on late costs or deliveries. But if you go to your boss with a stamped arrangement, the boss is rather on the side of you and respect what was written in the agreement. You may also want to change this point in the next order, but at least you will get what you agreed in that order. 10. Arbitration: As production tends to be concentrated in less developed regions in China, in addition to the cost/time/reliability benefits often associated with arbitration, we recommend that clients choose arbitration procedures for dispute resolution. Arbitration proceedings can be conducted in China or internationally (in any state that is a signatory to the New York Convention), although domestic arbitration procedures allow buyers access to Chinese justice in the event of a termination appeal. As you may have already guessed, unless you`re going to place a multi-million dollar order (with an MDG) – you probably don`t need to sign an NNN. Focus on getting the best product possible and building your business. Please note that we only provide this information as a reference and that you indicate that you always discuss your situation with a lawyer before working with a Chinese supplier.

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