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Export Agreement
I need an export agreement for a UAE-based company exporting electronics to the European market, ensuring compliance with local and international trade regulations, specifying Incoterms, payment terms, and including a force majeure clause. The agreement should also outline the responsibilities of both parties regarding shipping, insurance, and customs clearance.
What is an Export Agreement?
An Export Agreement sets out the terms and conditions for selling goods from the UAE to international markets. These contracts specify crucial details like product specifications, shipping arrangements, payment terms, and compliance with UAE export regulations under Federal Law No. 13 of 2007.
UAE businesses use Export Agreements to protect their interests when sending goods abroad, manage customs requirements, and ensure smooth international transactions. The agreement typically includes key provisions about export licenses, quality standards, Halal certification requirements, and specific documentation needed for UAE Free Zone operations. It serves as both a legal safeguard and a practical roadmap for successful cross-border trade.
When should you use an Export Agreement?
Use an Export Agreement anytime your UAE business plans to sell and ship products internationally. This is especially important when entering new markets, dealing with first-time overseas buyers, or handling high-value exports through UAE Free Zones. The agreement becomes essential before finalizing major export deals or starting regular shipments to foreign customers.
It's crucial to have this agreement in place when navigating complex customs requirements, meeting specific country import regulations, or protecting your business from payment risks. UAE companies operating in sectors like electronics, textiles, or petrochemicals need these agreements to ensure compliance with Federal export controls and maintain clear documentation for customs authorities.
What are the different types of Export Agreement?
- Standard Export Agreement: Basic template covering product details, payment terms, and shipping arrangements - commonly used for straightforward UAE exports
- Free Zone Export Agreement: Specialized version with additional clauses for UAE Free Zone operations, tax considerations, and zone-specific regulations
- Distribution Export Agreement: Combines export terms with distribution rights, ideal for UAE companies establishing overseas distribution networks
- Manufacturing Export Agreement: Enhanced version with detailed quality control, production specifications, and compliance requirements for UAE manufacturers
- Commodity-Specific Agreement: Tailored for specific sectors like oil & gas, precious metals, or agricultural products, incorporating relevant industry standards
Who should typically use an Export Agreement?
- UAE Export Companies: Primary users who draft and rely on Export Agreements to sell their products internationally, especially manufacturers and trading companies
- International Buyers: Foreign entities purchasing goods from UAE exporters, who must comply with agreement terms and payment obligations
- Trade Finance Banks: Financial institutions facilitating international payments and providing trade finance ֱs under the agreement
- Customs Officials: Government authorities who reference these agreements for export clearance and compliance verification
- Legal Advisors: Corporate lawyers and legal consultants who draft, review, and ensure agreements meet UAE export regulations
How do you write an Export Agreement?
- Product Details: Compile exact specifications, quantities, packaging requirements, and quality standards for export goods
- Trade Documentation: Gather UAE export licenses, certificates of origin, and any required product certifications
- Payment Terms: Define payment method, currency, timeline, and any letter of credit requirements
- Shipping Details: Determine Incoterms, delivery schedules, ports of exit/entry, and transportation methods
- Compliance Check: Review UAE export control regulations and destination country import requirements
- Company Information: Collect authorized signatory details, trade licenses, and corporate documentation for both parties
What should be included in an Export Agreement?
- Party Details: Full legal names, trade license numbers, and authorized representatives of both exporter and buyer
- Product Description: Detailed specifications, quantities, and quality standards as per UAE trade regulations
- Payment Terms: Price, currency, payment method, and timeline following UAE Central Bank guidelines
- Delivery Terms: Incoterms, shipping details, and transfer of risk provisions under UAE maritime law
- Compliance Clauses: Export control requirements, customs declarations, and documentation needs
- Dispute Reֱ: UAE courts jurisdiction, applicable law, and arbitration procedures
- Force Majeure: Provisions for unforeseen circumstances as per UAE Civil Code requirements
What's the difference between an Export Agreement and a Barter Agreement?
An Export Agreement differs significantly from a Barter Agreement in both structure and purpose, though both involve the transfer of goods. While Export Agreements focus on international sales with monetary compensation, Barter Agreements facilitate direct exchanges of goods or services without cash transactions.
- Payment Structure: Export Agreements require specific monetary terms, currency considerations, and international banking arrangements, while Barter Agreements detail the exchange value of goods
- Regulatory Compliance: Export Agreements must address UAE customs requirements, export controls, and international trade regulations; Barter Agreements focus more on local commercial laws
- Documentation Requirements: Export Agreements need extensive shipping documentation, certificates of origin, and customs declarations; Barter Agreements typically require simpler documentation
- Risk Management: Export Agreements include provisions for international shipping risks, currency fluctuations, and cross-border disputes; Barter Agreements mainly address quality and delivery risks within the UAE
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