[Consultation] Drafting logistics outsourcing agreements between parent company and subsidiary

Law firm Veat prepared the consignment agreement for A, a company operating a used car export brokerage platform.

A, which operates as an international logistics forwarder as defined by the “Basic Logistics Policy Act” while also assuming responsibility for logistics and transportation, requested that Law firm Veat draft consignment agreements for its newly established subsidiary and prepare the agreement.

Accordingly, Law firm Veat reviewed A’s platform structure, responsibility for logistics, and its role in the transportation process to draft the consignment agreement. The invoice issued by A to the buyer included clauses concerning Incoterms (INCOTERMS), which are used in international trade, creating the possibility that A would be interpreted as the seller in a sales contract and as the freight forwarder in a transportation contract. Therefore, it was necessary to identify and correct potential legal risks in advance due to vague clauses that could lead to differing interpretations of A’s responsibilities.

Furthermore, Law firm Veat verified the need for PG registration and the reporting obligation under the Foreign Exchange and Foreign Trade Act, according to A’s platform structure, to help A operate the platform safely in the future.

If you need legal advice regarding consignment agreements, international trade agreements, and international logistics forwarding business, please feel free to contact Law firm Veat at any time.

Thank you.
Law firm Veat