A foreign trade contract is a narrower notion than “an international commercial contract”. Foreign trade contracts enjoy a legal status which reflects the state’s intention to promote the involvement of individual citizens and legal entities in foreign trade and sets forth specific measures of state foreign exchange, financial and customs controls.

Thus, the only difference between the two types of contracts is the fact that international commercial contracts are used in transactions involving several states while foreign trade contracts are employed internally.

• A foreign trade contract is a contract made by a resident and a non-resident envisioning a for-profit transfer of goods, performance of works and provision of services;

• A foreign trade transaction is any export (import) delivery (shipment) under a customs declaration, any stage of the performance of works (provision of services), which is documented by a separate acceptance deed or any other document set forth in the applicable legislation or any settlement.

Thus, the key criteria which allow for the categorization of a contract as a foreign trade contract are as follows:

• A contract shall be made by parties as part of their professional activities to generate profits;

 

( liyy )15 Oct,2010

Other News:
Definition of a foreign trade contract
Major Documents Required in World Trade(2)
The send and the transfer of international container
Insurance(1)
DDU-What is the meaning of DDU?
Insurance(2)
Basic knowledge of Bill of Lading
ADVANTAGES AND DISADVANTAGES OF INTERNATIONAL TRADE