Entering Into Export Contract

Entering Into Export Contract :

In order to avoid disputes, it is necessary to enter into an export contract with the overseas buyer. For this purpose, export contract should be carefully drafted incorporating comprehensive but in precise terms all relevant and important conditions of the trade deal. There should not be any ambiguity regarding the exact specifications of goods and terms of sale including export price, mode of payment, storage and distribution methods, type of packaging, port of shipment, delivery schedule etc.

The different aspects of an export contract are enumerated as under:

I. Product, Standards and Specifications

2. Quantity

3. Inspection

4. Total Value of the Contract

5. Terms of Delivery

6. Taxes, Duties and Charges

7. Period of Delivery / Shipment

8. Packing, Labeling and Marking

9. Terms of Payment - Amount/Mode & Currency

10. Discounts and Commissions

I I. Licences and Permits

11. Insurance

12. Documentary Requirements

13. Guarantee

14. Force Majeure of Excuse for Non-Performance of Contract

15. Remedies

16. Arbitration

It will not be out of place to mention here the importance of arbitration clause in an export contract. Court proceedings do not offer a satisfactory method for settlement of commercial disputes. as they involve inevitable delays, costs and technicalities. On the other hand… arbitration provides an economic, expeditious and informal remedy for settlement of commercial disputes. Arbitration proceedings are conducted in privacy and the awards are kept confidential. The Arbitrator is usually an expert in the subject matter of the dispute. The dates for arbitration meetings are fixed with the convenience of all concerned. Thus, arbitration is the most suitable way for settlements of commercial disputes and it may invariably be used by businessmen in their commercial dealings.

The Indian Council of Arbitration Federation House, Tansen Marg, New Delhi. (Ph. 3319251 Fax. 3320714) is a specialized arbitration institution providing arbitration facilities for all types of domestic or international commercial disputes. You should use their services as far as possible.

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