Can a company who imports products, say cosmetics from China, in turn export those products to the UK?
I have had a number of clients asking me to draw up distribution agreements for distributors in Europe when they themselves are the Australian distributor of a product.
Before entering into “sub-distribution” arrangements with other distributors in other territories, a number of things should be established:
- Do you have a written agreement with the supplier giving you distribution rights to the territory you are in AND other territories you may wish to export to?
- Does the written agreement allow you to appoint sub-distributors and in which territories?
- Do you need to get the supplier’s consent to those sub-distributors?
- Are there requirements for marketing the product set by the supplier?
- How will you ensure that such requirements are met by sub-distributors?
- Does the supplier have any rights over any of the territories you seek to enter?
- How will this affect your potential export ventures in terms of competition?
I am constantly amazed at the number of clients who have not asked these questions and do not realise that before you can give someone else the right to do something with your product, you have to ensure that you have that right yourself.
For more Export Matters blogs, click here.
Lynda Slavinskis is an outgoing, intuitive and commercially savvy lawyer. She has worked in-house at Sussan Corporation and Tattersall’s and now assists small and medium businesses with import, export, leases, franchising, employment and general business advice as principal solicitor of Lynda Slavinskis Lawyers & Consultants. Lynda is on the Victorian State Government’s Small Business Advisory Council.
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