Conclusion of contracts and coordination of terms of delivery during Export

The amount of export duty and permissive documentation required for the goods exported from Russian territory becomes clear depending on the HS code, as well as the cost and terms of its registration.

Permissive documentation:

The Ministry of Industry and Trade of the Russian Federation issues licenses for export of certain goods categories
FSTEC of the Russian Federation issues licenses (permits) or conclusion reports for the export of goods and technologies for which export control is established
Federal service for veterinary and phytosanitary surveillance of the Russian Federation issues veterinary and phytosanitary certificates
Russian Federal State Agency for Health and Consumer Rights issues sanitary-epidemiological and radiation certificates
Chamber of Commerce and Industry of the Russian Federation issues certificates of origin and various expert reports
Other state and non-state organizations – tests results and laboratory studies, conclusions, permits, licenses, certificates

In conclusion:

Thus, the possibility of Export, the amount of customs duties, the costs of permissive documentation and the prospect of obtaining preferences in the country of import are determined.

Negotiation of delivery terms

In international trade the definition of “delivery terms” is understood as the letter designation from the set of trade terms called International Commercial Terms or Incoterms.

The Seller and the Buyer obligations are determined by negotiation of delivery terms, also called the “Delivery basis”, in case of making a foreign trade transaction.

Delivery basis regulates such issues as:

distribution of risk and the moment of its transfer from the Seller to the Buyer for damage and loss of goods;
type of vehicle for goods delivered to the Buyer;
fulfillment of customs formalities, obligations of the Seller and the Buyer related to the goods delivery.

In addition, there is an agreement on the quantity of goods, its quality requirements, payment terms, delivery dates and other conditions.

Selection of the optimal logistics model

Delivery cost is an important component in export procedure which has a significant impact on the final cost of goods and on its competitiveness on foreign markets.

The most optimal delivery method is selected based on the cargo parameters, its weight and size characteristics, requirements for its transportation, delivery time and other conditions.

IT IS IMPORTANT TO UNDERSTAND

The transport services market is so oversaturated and between the Customer and the direct Contractors there are several more Intermediaries which increases the cost of delivery.

It is almost impossible to enter into contractual relations with direct performers without proper experience and knowledge independently.Such circumstances often make Russian goods not competitive in price on foreign markets

Foreign trade contract

The basis of any foreign trade contract is the cost price formed as a result of previous actions taking into account the profit in the agreed delivery basis.

When you create a contract with a foreign partner it is necessary to pay attention to the applicable law – the kind of the law that will be applied to govern relations between the partners. The relations of the partners are determined not only by the terms of the contract, but also by the norms of the applicable law. There are significant differences in solution of the same law issues in different countries, therefore, you need to know what type of law will govern a particular contract.

Other possible contractual arrangements

Delivery contract with the manufacturer
Contracts related to the registration of permissive documentation
contract for providing brokerage services
contract for providing freight forwarding services
contract for providing warehouse services

Contract administration

Each contract has its own conditions regarding the fulfillment of payment conditions, terms and quality of rendered services. Delaying the deadlines for the execution of work by one of the contractors may lead to some additional financial or time costs. Therefore, it is important to monitor all concluded contracts execution at all stages.

the first STEP
CONTRACTING
and negotiation of delivery terms

Determination of HS code
and predesign stage