February 20, 2013
Foreign companies usually opt to appoint their local distributors as the local entity to apply for and maintain product registration and import licenses, as usually required by Asian FDAs and 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 that lead to difficulties in terms of terminating a partner.