Foreign economic agreement as the basis for foreign-economic activity.

One of the most important steps of the foreign-economic bargain is conducting a foreign economic contract. Correctly presented wording of the contract could keep you away from the unpleasant situations during the deliveries and payments with your counteragents as well as during customs clearance.

While making the contract we recommend to take into consideration the recommendations of the customs broker consulting that will help to take into account the demands of the customs legislation where the clearance of the goods will take place.

The structure of the foreign-economic contract has to be as following:

  • Name, number, date, place of contraction;
  • Preamble to a treaty;
  • Full name of parties with definition of the country;
  • Short definition of the parties as counteragents ("Customer/Buyer", "Supplier/Seller" etc.);
  • Person from the name of who the contract is conducted;
  • Document on the basis of which the person from counteragent party is acting for the moment of contract is conducted;
  • Subject of the contract;
  • Naming of the goods /services delivered under the contract;
  • Price and value of the contract;
  • Terms of delivery according to Incoterms-2000 (or as in force on other years);
  • Terms of delivery;
  • Currency of the contract;
  • The terms of the payments. Currency of the payments. Type of payment (by letter of credit, COLA (coll collection), direct bank transfer);
  • Terms and place of transfer of goods;
  • Terms and guarantees of financial payments;
  • List of shipping documents;
  • Package and marking;
  • Terms of validity of the contract;
  • Force-major circumstances;
  • Actions during the force-major circumstances;
  • Sanctions and reclamations;
  • Assessment of penalties and reclamations;
  • Volumes and terms of implementing penalties;
  • Terms of claiming reclamations;
  • Dispute settlement;
  • Name of the court. Criteria of choosing the material and procedural right;
  • Full payment details (requisites) of the parties (account, name and location of the bank, SWIFT, IN+BAN codes, etc.);
  • Full post details (requisites) of the parties.

At present moment in Ukraine, the form of the form of the foreign economic contract is regulated by the Decree about the form of the foreign economic contracts (Ministry of Foreign Trade of Ukraine, Decree dated 05.10.1995 № 75) according to which the information mentioned below must be obligatory declared:

  • name, number, date, place of contraction;
  • preamble to a treaty, where the full name of the parties participating in the foreign economic relations and names of the other documents which are used by counteragents;
  • preamble to a treaty, where the full name of the parties participating in the foreign economic relations and names of the other documents which are used by counteragents;
  • quality and quantity of goods (volumes of work or provided services);
  • basic terms of delivery (according to Incoterms-2000);
  • price and value of the contract;
  • terms of payment;
  • terms of the delivery-take-over of the goods (works, services), in particular, terms, places, place of factual delivery-take-over, shipping documents;
  • packaging and marking of the goods;
  • force-major;
  • sanctions and reclamations, where the order for the penalties, refunding losses and claiming reclamations is assigned;
  • dispute settlement in a court where it is defined clear criteria of the appointment of the court by one of the parties of the dispute, also the agreed by the parties selection of the material and procedural right, that will be used by this court and the procedures of the court settlement;
  • location, postal and payment requisites of parties.
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