The Freight Forwarder Agency Agreement is essential for businesses engaged in international trade and logistics operations within Malaysia and internationally. This document is used when a company (principal) needs to appoint a professional freight forwarding agent to manage their logistics operations, customs clearance, and transportation arrangements. The agreement ensures compliance with Malaysian regulations, including the Customs Act 1967, Contracts Act 1950, and relevant international trade laws. It typically includes detailed provisions on service scope, liability allocation, insurance requirements, and operational procedures. This type of agreement is particularly important in Malaysia's growing logistics sector, where clear definition of roles, responsibilities, and risk allocation between principals and freight forwarding agents is crucial for smooth international trade operations.
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1. Parties: Identification of the Principal (shipping company/client) and the Agent (freight forwarder)
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement including technical shipping and logistics terminology
4. Appointment and Scope: Formal appointment of the freight forwarder as agent and detailed scope of services
5. Territory and Exclusivity: Geographical area of operation and whether the appointment is exclusive
6. Agent's Duties and Responsibilities: Detailed obligations of the freight forwarder including operational requirements
7. Principal's Duties and Responsibilities: Obligations of the principal including information provision and support
8. Compliance and Regulations: Regulatory compliance requirements and customs regulations
9. Fees and Payment Terms: Commission structure, payment terms, and expense reimbursement
10. Liability and Indemnification: Risk allocation, limitation of liability, and indemnification provisions
11. Insurance: Required insurance coverage and minimum limits
12. Confidentiality: Protection of confidential information and trade secrets
13. Term and Termination: Duration of agreement and termination provisions
14. Post-Termination Obligations: Duties and responsibilities after agreement ends
15. General Provisions: Standard legal provisions including governing law, notices, and dispute resolution
1. Non-Competition: Restrictions on agent's ability to represent competitors, include when exclusivity is important
2. Performance Metrics: Specific KPIs and performance standards, include when monitoring performance is crucial
3. IT Systems and Integration: Requirements for using specific software or systems, include when technical integration is needed
4. Training and Support: Principal's obligations for training, include when specialized knowledge transfer is required
5. Marketing and Branding: Guidelines for using principal's brand, include when agent will represent principal's brand
6. Force Majeure: Provisions for unforeseen circumstances, include when operating in volatile regions
7. Environmental Compliance: Green shipping requirements, include when environmental standards are crucial
8. Data Protection: PDPA compliance provisions, include when handling personal data
1. Schedule 1 - Service Level Agreement: Detailed operational requirements and performance standards
2. Schedule 2 - Commission Structure: Detailed breakdown of fees, commissions, and payment calculations
3. Schedule 3 - Territory Description: Detailed description of geographical coverage and any exclusions
4. Schedule 4 - Required Reports: Format and frequency of operational and financial reports
5. Schedule 5 - Insurance Requirements: Specific insurance types and coverage limits required
6. Appendix A - Operating Procedures: Standard operating procedures and workflows
7. Appendix B - Contact Details: Key personnel and emergency contact information
8. Appendix C - Required Documents: List of necessary shipping documents and forms
9. Appendix D - Compliance Checklist: Regulatory compliance requirements and documentation
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