Iran–Uzbekistan trade cooperation, in a written framework
An export and import partnership agreement between an Uzbek investor and an Iranian supplier covering the supply, purchase, transportation, export, import, customs clearance, warehousing and sale of construction reinforcing steel bars from Iran to Uzbekistan, and the distribution of resulting profits.
Prepared for presentation to business managers in Tashkent, Uzbekistan.
Parties and obligations
TEMIR ADASH
- Declare and approve order specifications in writing
- Provide the initial capital and pay per schedule
- Pay the advance after written approval of the first order
- Pay the balance once goods reach Uzbekistan customs
- Obtain import, clearance, distribution and sale permits
- Pay costs from Uzbekistan customs to the Bukhara warehouse
- Provide sales, revenue and expense reports
- Transfer the Iranian party’s profit share to its designated account
Sina Kavosh Vahed
- Study the market, obtain quotations and supply per order
- Declare price, specifications, standards and preparation time
- Purchase or produce goods after approval and advance payment
- Package, load and transport within Iran to Uzbekistan customs
- Bear transport, insurance and duties up to Uzbekistan customs
- Obtain Iranian export and customs permits
- Deliver per approved type, size, grade, quality and standard
- Cooperate in providing clearance documents
Cost split along the route
Uzbekistan customs is the boundary where responsibility transfers.
Iran — supply and domestic transport
Purchase, packaging, preparation, loading and inland haulage to the border.
Transit — Turkmenistan rail
Rail transport across Turkmenistan, cargo insurance and route duties up to Uzbekistan customs.
Uzbekistan — clearance to Bukhara warehouse
Customs charges, clearance and transfer from Uzbekistan customs to the Bukhara warehouse.
Export methods
Direct export
Goods are offered in the foreign market without an intermediary, giving greater control over the target market, direct customer knowledge, higher margins and more accurate market information. Responsibility for marketing, sales, permits and transportation rests with the exporter or the joint consortium of the parties.
Indirect export
Export operations run through intermediary companies, export management companies, traders or commercial representatives. This can reduce certain market-entry costs and risks, but the exporter has less control over the market and its customers.
The method is determined separately for each order.
Export responsibilities
Strategic objectives
Goods under the agreement
Construction ribbed reinforcing bars in the diameters and grades specified in the source document, in accordance with the standard and technical specifications approved in writing for each order. The specialized Uzbekistan market appendix and the technical specifications for reinforcing bars form an integral part of the agreement.
Items requiring approval before signature
- The combined cost and profit figure stated in the source document (USD 45,111,111) and the two-month withdrawal period
- The advance-payment percentage and the precise payment schedule
- Rebar diameter and grade for each order
- Type of security — liquidated damages, bank guarantee or promissory note — in an appendix
- The reference language of the agreement (Persian plus Russian / Uzbek / English) and number of copies
- City and date of execution, and the competent judicial authority if no arbitral tribunal can be formed