April 29, 2011

Rogue Distributors and Hijacked Certificates

Informed Counsel

Foreign agrochemical 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 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. This can lead to difficulties in terms of terminating a partner who holds the keys to getting your agrochemical products into local markets, which is sometimes referred to as a rogue distributor problem or a hijacked certificate.

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