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Warehousing Agreement Template for Indonesia

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Key Requirements PROMPT example:

Warehousing Agreement

I need a warehousing agreement for a third-party logistics provider to store and manage inventory for a period of 12 months, with options for renewal. The agreement should include terms for inventory tracking, liability for loss or damage, and a 30-day termination notice period.

What is a Warehousing Agreement?

A Warehousing Agreement sets out the terms between a business storing goods and the warehouse operator managing them. Under Indonesian law, these contracts specify how items will be received, stored, and released, along with key responsibilities like maintaining proper conditions and security measures.

The agreement typically covers insurance requirements, storage fees, handling procedures, and liability limits - all aligned with Indonesia's Civil Code and warehousing regulations. It protects both parties by clearly defining service expectations, damage procedures, and payment terms while ensuring compliance with local customs and trade requirements.

When should you use a Warehousing Agreement?

Consider a Warehousing Agreement when your business needs to store goods with a third-party warehouse operator in Indonesia. This is especially important for companies handling high-value inventory, temperature-sensitive products, or materials requiring specialized storage conditions.

The agreement becomes essential when scaling operations beyond in-house storage capacity, expanding into new markets, or managing seasonal inventory fluctuations. Indonesian customs regulations and trade laws make this document particularly important for businesses involved in import-export activities, as it establishes clear protocols for goods handling, security measures, and liability allocation.

What are the different types of Warehousing Agreement?

  • Basic Storage Agreement: Covers fundamental warehousing services with standard liability terms and handling procedures
  • Bonded Warehouse Agreement: Specifically for goods pending customs clearance, following Indonesian customs regulations
  • Temperature-Controlled Storage: Features detailed environmental control requirements for perishables or sensitive materials
  • Full-Service Logistics Agreement: Combines storage with additional services like packaging, distribution, and inventory management
  • Industry-Specific Storage: Tailored for specialized sectors like pharmaceuticals or hazardous materials, incorporating relevant safety protocols

Who should typically use a Warehousing Agreement?

  • Warehouse Operators: Manage storage facilities and sign agreements as service providers, ensuring proper storage conditions and security
  • Business Owners: Contract warehouse services for storing inventory, raw materials, or finished products
  • Legal Teams: Draft and review agreements to ensure compliance with Indonesian storage and logistics regulations
  • Operations Managers: Oversee daily implementation of storage terms and coordinate with warehouse staff
  • Insurance Providers: Offer coverage for stored goods and verify compliance with insurance requirements

How do you write a Warehousing Agreement?

  • Storage Requirements: List specific goods, quantities, and any special handling needs
  • Service Scope: Define exact services needed - basic storage, temperature control, packaging, or distribution
  • Timeline Details: Determine storage duration, access hours, and delivery/pickup schedules
  • Insurance Coverage: Gather insurance certificates and liability limits from both parties
  • Compliance Details: Check Indonesian customs requirements and storage regulations for your goods
  • Cost Structure: Outline storage rates, handling fees, and payment terms clearly

What should be included in a Warehousing Agreement?

  • Party Details: Complete legal names, addresses, and business registration numbers of warehouse operator and client
  • Service Description: Detailed scope of storage services, handling procedures, and access rights
  • Term and Termination: Duration, renewal options, and conditions for early termination
  • Liability Provisions: Risk allocation, insurance requirements, and damage compensation terms
  • Payment Terms: Storage fees, additional charges, payment schedule, and late payment consequences
  • Governing Law: Clear statement of Indonesian law application and dispute reֱ procedures

What's the difference between a Warehousing Agreement and an Agency Agreement?

A Warehousing Agreement differs significantly from a Agency Agreement in both scope and purpose, though they're sometimes confused in logistics operations. While both involve third-party services, their core functions serve different business needs.

  • Service Focus: Warehousing Agreements specifically cover storage, handling, and inventory management, while Agency Agreements establish broader representation rights and authority to act on behalf of another party
  • Liability Structure: Warehouse operators assume custody-based liability for physical goods, whereas agents take on representational liability for business decisions and transactions
  • Operational Control: Warehousing focuses on physical storage and handling procedures, while agency relationships involve decision-making authority and market representation
  • Regulatory Framework: In Indonesia, warehousing falls under storage and logistics regulations, while agency relationships are governed by commercial representation laws

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