Preparation of contracts for foreign economic activity

A foreign economic contract is an agreement concluded for the free and legal movement of various products across the border. Its formation and execution require consideration of international law and standards, and the presence of certain guarantees. Such a contract has significant differences from a standard document signed between counterparties of the same state, therefore, its preparation must be approached comprehensively, taking into account the smallest details related to the functioning of the company, its direction, specialization, type of cargo, and transportation features.

foreign economic contracts

How are foreign economic contracts regulated in Ukraine

  • To effectively control foreign economic contracts in Ukraine, a number of mechanisms and norms have been developed that are prescribed in currency and tax legislation, as well as acts related to customs processes. Their main goal is to protect the national market from the penetration of products that do not meet quality standards and are not provided for by global regulations.
  • The main document that Ukraine is guided by when establishing foreign economic relations is the law "On Foreign Economic Activity". It gradually spells out the rights and obligations of the parties, the stages of drawing up a contract, and other important information that allows for legal cooperation, with the possibility of further distribution of goods throughout the territory of Ukraine.
  • Another equally important document is the Regulation on the Form of Foreign Economic Contracts. Thanks to it, these documents have a fixed form, which facilitates the process of their study and evaluation by regulatory authorities.

Sections that must be included in a foreign economic activity contract

Any foreign economic activity contract must contain the following subparagraphs:

  1. Name, identification number of the contract, date of its conclusion. In addition, the place of conclusion of the contract is prescribed, since each country has its own legislative framework that must be taken into account.
  2. Preamble, in other words, the introductory part, which lists the main laws and regulations on which it was based when forming it.
  3. Subject of the contract, that is, a brief summary of what will be sold and on what terms, as well as the quantity and expert assessment of the quality of the products.
  4. Main delivery conditions: their regularity, volume, cost, how financial transactions will be carried out, how the goods will be transported and transferred.
  5. Features of packaging and labeling that will allow you to preserve the quality of the products and confirm it at the legislative level.
  6. Conditions for action in unforeseen circumstances, sanctions provided for.
  7. Location and details of the parties to the contract.

What to pay attention to when signing a contract Foreign Economic Activity

  • The choice of contract type is usually determined by the type of foreign economic agreement. Whether it will be barter or standard purchase and sale depends on your agreements with the counterparty.
  • When drawing up a contract for the processing of raw materials or recycling, it is necessary to specify the type of final product, as well as its purpose and further use. In addition, a sequential processing plan and its costs are attached.
  • For foreign economic contracts related to complex machinery and equipment, technical passports are usually formed, which specify their capacity, type of design and other characteristics.
  • Please note that there are no restrictions on the number of annexes to the contract, and the more detailed and substantiated they are, the greater the likelihood that you will immediately detect a possible fraudulent scheme, as well as avoid problems with customs services.

Use the the services of the leading customs broker "Dilijans" to enlist the help of qualified experts who will draw up a competent and effective foreign economic activity contract for you. And then your company will be able to gain a foothold in the domestic market and build exceptionally profitable relationships with foreign partners.