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April 29, 2011

Rogue Distributors and Hijacked Certificates – Preparing for the Worst from Your Local Agrochemical Partner

T-AB: Thai-American Business, Journal of the American Chamber of Commerce in Thailand

Foreign agrichemical companies usually opt to appoint their local distributors, agents, or licensees as the local entity to apply for and maintain product registration and import licenses as usually required by Asian Ministries of Agriculture.  Such appointments are normally set out in the distribution agreement.  While on most occasions this is a mutually beneficial relationship, sometimes local partners who have built up the business for those products may begin to compete unfairly or commit other breaches which leads to difficulties in terms of terminating a partner who holds the keys to getting your agrochemical products into local markets. This is sometimes referred to a rogue distributor problem or a hijacked certificate.

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