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China Supply Contract. Tips for FREE


Source China for Your Supply Chain, your product manufacturing, production and legal supply contract. Here are our tips. By Dracon International Trade NZ Ltd, based Guangzhou, China.


To protect your product your manufacturing ex China. A signed written agreement (preferably in the manufacturer's own language), First seek legal counsel, in international law.


A well-crafted manufacturing agreement with your foreign manufacturer should usually contain some or all the following:


1. You are able to inspect your goods before your order is shipped out and before final payment.

2. Your own product: within contract that all tooling, jigs and molds belongs to you, and should be returned to you within reasonable time, with a penalty sum payment if not returned within reasonable time frame agreed upon.

3. Exclusive supply contract, that your factory will not supply or copy your goods.

4. Exclusive supply or product and markets: that your factory cannot sell direct to your customers or to your competitors. Country specific agreements provides protection for this.

5. Contract, that appropriately drafted and country specific NNN (non-disclosure, non-use, non-circumvention) provisions provide for this.

6. Include in the contract for any damages as a remedy for IP infringement.

7. Factories changing raw material suppliers, you should at once be informed for permission before using the new supplier.

8. Quick identifier of all subcontractors connected in the production of your product. Your manufacturer is always deemed liable for mistakes by their subcontractors.

9. The agreement should be governed and enforceable by the local law and local courts. This is crucial in case of dispute that the remedy can be enforced and punishable by local laws.

10. Your Manufacturing Agreement should be written to protect you yet be mindful not so much that the supplier will not want to sign.


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