Customs Broker Agreement for United Arab Emirates

Customs Broker Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE federal and local customs laws that establishes the terms and conditions under which a licensed customs broker provides customs clearance and related services to a client. The agreement ensures compliance with UAE customs regulations, defines the scope of services, outlines responsibilities and liabilities, and sets forth the operational procedures for handling customs declarations, documentation, and related matters. It incorporates specific requirements under UAE Federal Law No. 8 of 2015 on Federal Customs and relevant local emirate customs regulations.

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What is a Customs Broker Agreement?

The Customs Broker Agreement is essential for businesses engaged in import/export activities in the United Arab Emirates. This document is required when a company needs to appoint a licensed customs broker to handle customs clearance procedures, documentation, and related services at UAE ports and borders. The agreement must comply with UAE Federal Law No. 8 of 2015 on Federal Customs, local emirate customs regulations, and relevant Cabinet Decisions. It outlines the broker's authority to act on behalf of the client, defines service scope, establishes fees and payment terms, and addresses compliance requirements. A properly structured Customs Broker Agreement is crucial for ensuring smooth customs operations and maintaining regulatory compliance in the UAE's dynamic trading environment.

What sections should be included in a Customs Broker Agreement?

1. Parties: Identification of the client and the customs broker, including full legal names, licenses, and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement, including technical customs terminology

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of customs clearance and related services

5. Broker's Obligations: Detailed responsibilities of the customs broker, including compliance with UAE customs laws and regulations

6. Client's Obligations: Client's responsibilities, including provision of accurate information and documentation

7. Fees and Payment Terms: Detailed fee structure, payment terms, and additional charges

8. Documentation and Record Keeping: Requirements for maintaining customs documentation and records as per UAE law

9. Compliance and Customs Regulations: Commitment to comply with UAE customs laws, regulations, and procedures

10. Representations and Warranties: Standard warranties regarding authority, capacity, and licensing

11. Liability and Indemnification: Allocation of risks and responsibilities between parties

12. Confidentiality: Protection of confidential information and trade secrets

13. Term and Termination: Duration of agreement and circumstances for termination

14. Force Majeure: Provisions for unforeseen circumstances affecting performance

15. Governing Law and Dispute Resolution: Specification of UAE law as governing law and dispute resolution procedures

What sections are optional to include in a Customs Broker Agreement?

1. Insurance Requirements: Specific insurance requirements beyond standard coverage, used when handling high-value or sensitive goods

2. Special Services: Additional services such as consulting or specialized handling, included when broker offers extended services

3. Performance Metrics: Specific KPIs and service levels, included for high-volume or complex operations

4. Customs Valuation Procedures: Detailed procedures for customs valuation, included when dealing with complex import/export scenarios

5. Electronic Data Interchange: Procedures for electronic submission and processing, included when using automated systems

6. Sub-contracting: Terms for engaging sub-contractors, included when broker may need to delegate certain services

7. Intellectual Property: IP protection clauses, included when dealing with branded goods or proprietary information

8. Bank Guarantee: Terms for providing bank guarantees, included when required by specific customs regulations

What schedules should be included in a Customs Broker Agreement?

1. Schedule 1 - Service Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

2. Schedule 2 - Required Documentation: List of required customs documentation and format specifications

3. Schedule 3 - Operating Procedures: Detailed procedures for day-to-day operations and communications

4. Schedule 4 - Power of Attorney: Standard power of attorney format for customs clearance activities

5. Schedule 5 - Contact Details: Key contacts and escalation matrix for both parties

6. Appendix A - Customs Codes: Relevant customs codes and classifications commonly used

7. Appendix B - Compliance Checklist: Checklist of regulatory compliance requirements

8. Appendix C - Service Level Standards: Detailed service level agreements and performance metrics

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Agency Agreement

Cost

Free to use
Relevant Industries

Manufacturing

Retail

International Trade

Logistics

E-commerce

Pharmaceuticals

Automotive

Electronics

Fast-Moving Consumer Goods

Industrial Equipment

Textiles

Food and Beverage

Oil and Gas

Chemical Industry

Luxury Goods

Relevant Teams

Legal

Supply Chain

Logistics

Operations

Procurement

Compliance

Finance

Risk Management

International Trade

Commercial

Relevant Roles

Supply Chain Manager

Logistics Director

Import/Export Manager

Customs Compliance Officer

Trade Compliance Manager

Operations Manager

Procurement Manager

Legal Counsel

Chief Operations Officer

Commercial Director

Supply Chain Director

Risk Manager

Finance Manager

General Counsel

Shipping Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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