casemark/eor-agreement

Exporter of Record (EOR) Agreement

Drafts an enforceable EOR Agreement appointing a qualified third party as USPPI, allocating export compliance obligations, and managing liability under U.S. export control law.

Prerequisites

1. Party details — legal names, entity types, jurisdictions, EIN numbers, CBP exporter-of-record numbers
2. Goods/technology — technical specs, ECCN classifications, USML categories if defense articles, commodity jurisdiction determinations
3. Destinations and end-users — countries, consignees, end-use certifications
4. Scope — compliance-only vs. combined logistics; exclusive vs. non-exclusive
5. Existing authorizations — BIS/DDTC licenses, license exceptions, OFAC authorizations
6. Business terms — fees, term length, insurance minimums, governing law/venue

Output Structure

1. Parties & Recitals

• Full party identification with CBP registration numbers
• Recitals: principal's export need → regulatory complexity → EOR expertise
• Acknowledgment of penalty exposure under EAR, ITAR, OFAC, CBP

2. Definitions

| Term | Definition | |---|---| | EOR / USPPI | Party on export documentation legally responsible for the transaction | | Export Controls | EAR (15 C.F.R. §§ 730–774), ITAR (22 C.F.R. §§ 120–130), OFAC sanctions, anti-boycott regs (15 C.F.R. Part 760) | | EEI/AES Filing | Electronic Export Information via Automated Export System per 15 C.F.R. Part 30 | | Controlled Items | Goods, software, or technology subject to EAR, ITAR, or OFAC | | Denied Parties Screening | Pre-shipment check against DPL, Entity List, Unverified List, SDN List, FSE List, ITAR Debarred List | | Export Documentation | Commercial invoice, packing list, BOL/AWB, license/exception, EEI, certificate of origin, DCS |

3. Appointment & Scope

• Exclusive/non-exclusive; product categories, destinations, carve-outs
• Authority limits: regulatory acts only vs. authority to bind commercially
• Escalation for novel classifications, sensitive end-users, denied-party hits

4. EOR Obligations

• [ ] Classify items under EAR (ECCN) or ITAR (USML); document rationale
• [ ] Determine licensing; apply exceptions or obtain BIS/DDTC licenses
• [ ] Submit EEI via AES for shipments meeting thresholds (15 C.F.R. Part 30)
• [ ] Place Destination Control Statements on invoices and BOLs
• [ ] Screen all participants against denied-party lists before each shipment; document results
• [ ] Prepare complete export documentation per transaction
• [ ] Retain records 5 years from export, license expiration, or enforcement action (15 C.F.R. § 762.2)
• [ ] Notify Principal within [X] business days of compliance issues, license denials, government inquiries
• [ ] Maintain E&O insurance ($[X]M min.), customs bond, general liability ($[X]M min.)

5. Principal Obligations

• [ ] Provide accurate technical specs and end-use/end-user info before each shipment
• [ ] Disclose prior commodity jurisdiction determinations and classification requests
• [ ] Notify EOR of product changes, new destinations/end-users, ownership changes
• [ ] Warrant IP rights and manufacturing authorizations; no export-restricting liens
• [ ] Bear all costs: EOR fees, filing fees, duties, taxes, license fees
• [ ] Cooperate with government audits and enforcement actions
• [ ] Comply with FCPA (15 U.S.C. § 78dd-1 et seq.) and anti-boycott regs (15 C.F.R. Part 760)

6. Representations & Warranties

• Both: not on any restricted party list; no disqualifying investigations; authority to execute
• EOR: holds required licenses/registrations; maintains compliance systems and trained personnel
• Principal: information accurate and complete; no undisclosed item restrictions
• Ongoing covenant: immediate notice of restricted-party status change or material compliance issue

7. Indemnification

| Party | Covers | |---|---| | Principal indemnifies | Inaccurate/incomplete info; undisclosed classifications; principal-caused violations; unauthorized changes; breach of warranties | | EOR indemnifies | EOR negligence or willful misconduct; filing/documentation errors; unauthorized acts beyond scope |

• Procedure: written notice → indemnifying party controls defense → indemnified party cooperates
• Unlimited liability carve-outs: gross negligence, willful misconduct, fraud, intentional export violations

8. Limitation of Liability

• Cap: lesser of $[X] or [X] months fees paid
• No consequential/punitive damages (except third-party awards or willful misconduct)

9. Term & Termination

| Event | Notice | |---|---| | Convenience | [30–90] days written | | Material breach | [15–30] days + cure period | | Immediate (no cure) | Bankruptcy; restricted-party listing; license revocation; imminent violation risk |

Post-termination: complete in-process shipments; transfer/assign licenses per agency rules; return documents within [X] days; refund unearned fees. Surviving: indemnification, confidentiality, records, payment.

10. Governing Law & Disputes

• [State] law; federal export law supersedes on regulatory matters
• Tiered: executive negotiation [30d] → mediation [60d] → arbitration/litigation
• Injunctive relief carve-out for confidentiality breaches and imminent violations
• Jury trial waiver if litigating

11. General Provisions

• Integration; written amendments; counterparts; e-signatures
• Schedules: product/ECCN list, fee schedule, approved destinations, compliance procedures

Guidelines

• ITAR trigger: Defense articles (USML I–XXI) require ITAR-specific reps, DDTC license/TAA references, registration (22 C.F.R. § 122); consider standalone addendum
• AES threshold: EEI required for shipments >$2,500 or requiring license (15 C.F.R. § 30.2) [VERIFY]
• OFAC: Screen SDN and sectoral sanctions even absent EAR/ITAR license requirements (50 U.S.C. § 1701 et seq.)
• Anti-boycott: Required for goods destined for/transiting Arab League countries; both parties covenant compliance (15 C.F.R. Part 760)
• Insurance: Confirm E&O, bond, and GL minimums against industry standards and export risk profile
• State law: Indemnification and liability caps may face state-specific enforceability limits
• License transfers: Export licenses generally non-transferable to successor EOR without BIS/DDTC approval; flag in transition planning