The foreign economic activity implementation involves several forms of relationships between subjects: trading activities, services provision, joint activities. In each case, the relationship between foreign trade transaction subjects is regulated by a contract.
A foreign trade agreement, a contract is the main commercial document containing an agreement between the participants in a foreign trade transaction on the goods' quality and quantity, the signatory parties each delivery and obligations terms.
A foreign trade agreement structure
In world practice, the contract structure has the following mandatory sections and clauses:
Preamble - an introductory part indicating the participants in the transaction;
The contract subject There is often a reference to a specification;
The contract total value and the currency;
Settlement procedure - payment currency, payment date and terms, the parties' responsibility for additional costs;
Delivery terms and conditions. This paragraph defines the goods' ownership transfer, provides an accompanying documents list and the copies number;
Product quality and packaging with appropriate labelling;
Warranty obligations;
The parties' responsibility and penalties determination and the procedure for compensation for losses;
Force majeure;
Arbitration agreements;
Contract time-frame
The parties addresses and details
At the parties request, additional clauses can be introduced, where the parties prescribe and regulate all the important, in their opinion, goods delivery terms. For example, the contract copies number, termination terms, provisions regarding specifications and additional agreements.
It is important that a contract with the EAEU and CIS countries can only be drawn up in Russian, however, when interacting with other countries, the contract is drawn up in two languages - Russian and English, and both versions should be interpreted equally and unambiguously.
To avoid unlawful changes in the contract terms, the contract each sheet is signed by both parties. If during the transaction it is necessary to make any changes or additions, an additional agreement should be concluded.
Specification for a foreign trade contract-agreement
The specification is a foreign trade agreement integral part and is executed in a table containing form:
Product name - must exactly match the name specified in the invoice;
Goods compliance with standards;
Product measurement unit;
Product quantity;
The contract total amount is indicated without VAT.
If additional services or works are provided along with the goods, they must also be indicated in the specification.
The specification also contains information on the goods' delivery order, the shipment timing, as well as shipping details.
The specification, like the contract, is signed by both parties and sealed.
It is important that on the contract and the specification basis, a transaction passport is drawn up. A foreign trade agreement regulates all relationships between the parties, therefore, when drawing up it, it is better to contact specialists. The company SOLLERTA offers services for a foreign trade agreement execution, both in Russian and in English, together with the goods customs clearance under this agreement.