Problems to be Noticed in the Contract Formulation of Small and Micro Export Enterprises
Release time:
2020-11-02 17:13
Source:
China Export & Credit Insurance Corporation
At present, affected by the epidemic and the international environment, the risk of foreign exchange collection in international trade is higher, and the export situation is more severe. For small and micro export enterprises, the more severe the export situation, the lower the status of the exporter in the cooperation process, the higher the probability of trade disputes and the greater the risk. Restricted by their own business scale and management ability, most small and micro export enterprises do not pay attention to the standardization of export contracts, which leads to a series of hidden risks.Small and micro export enterprises are prone to contract problems in the process of trade, such as not signing contracts with foreign buyers, signing contracts are not standardized, contract execution is not in place, contract breach is difficult to deal with, so how to avoid the above problems in the formulation of contracts?
(I) Focus on the Acquisition and Retention of Documentary Evidence in the Process of Trade
The contract must be signed in writing and confirmed by both parties, for the terms clearly agreed in the contract, if either party to the contract changes it, it is recommended that the exporter and the buyer re-sign a supplementary agreement or mail to make it clear that the other party agrees to the change, when there is a trade dispute in writing to the importer to actively defend, argue.It can also provide strong evidence for the subsequent division of responsibility in the case.
Ensure the enforceability of the contract (II) accurately and specifically formulating the contract breach clause.
In the formulation of the contract, the liability clause for breach of contract is established for the possible non-smooth performance of the contract, and is a relief clause for the rights of both parties to the contract. In international trade activities, this clause generally applies to the export enterprise's late delivery or the importer's late receipt of goods, the importer's failure to pay on time, etc., and the calculation method of the breach of contract is agreed in the terms. Although some trade contracts agree that the breaching party should bear the loss, there are no specific standards, which makes the actual implementation difficult and easy to cause losses.
(III) reasonable formulation of dispute resolution provisions to protect their own rights and interests
Where the trade contract is provided by the importer, its dispute resolution clause is often agreed to be extremely beneficial to it, such as the court or arbitration where the dispute is agreed to be settled is the place where the company operates. If the judicial environment of the importing country is more fair, the above agreement has little impact, and if the importer is a country with a poor judicial environment, it is recommended that the exporting enterprise should try its best to agree on the final settlement of the dispute in a neutral third country, in order to avoid the local court."Protectionism" adversely affects the final outcome of the ruling.
Where the trade contract is provided by the exporter, it may be agreed that a reasonable period of time (generally not more than a maximum90 days), if the result satisfactory to both the buyer and the seller cannot be obtained through negotiation, the dispute shall be submitted to the China International Economic and Trade Arbitration Commission for arbitration. The arbitration shall be final and binding on both parties, and the costs of the arbitration shall be borne by the losing party unless otherwise agreed, and the validity, interpretation and performance of the contract shall be governed by Chinese law.
Export Trade, Contract, Juyuan Petrochemical