FOREWORD........................................................ ................................................................ ....................................3 Acknowledgements ................................................................ ................................................................ ..........4 A note on terminology ................................................................ ................................................................ ...11 Chapter One: Introduction to Export-Import Practice ................................................................ ...........13 1.1 Scope of book ................................................................ ................................................................ ......... 13 1.2 Commercial sales and the law............................................................. ................................................... 13 1.3 The risks of exporting and importing....................................................... ............................................... 13 1.4 Standard documents and systems: understanding “documentary sales”........................................................ ....15 1.5 Cultural and language differences..................................................... ..................................................... 16 1.6 Solutions: examples of risk management for export-import ................................................................ .. 17 1.7 International organizations and chambers of commerce ................................................................ ....... 18 1.7.1 Chambers of commerce........................................................ ................................................ 18 1.7.2 ICC, supplier of global standards for international trade....................................................... 18 1.7.3 International organizations involved in international trade................................................... 20 1.8 The multilateral framework for world trade: the World Trade Organization (WTO)...................................21 CHAPTER TWO: Overview of an Export/Import Transaction: The Documents ........................................23 2.1 Documents and sequence of events in an export transactions .............................................................. 23 2.2 Transport: the freight forwarder ................................................................ ............................................. 26 2.3 Examination of the documents by the bank: the problem of discrepancies........................................27 2.4 Liability of carriers and coverage of insurance....................................................... ................................ 28 CHAPTER THREe: Focus on Incoterms® 2010: Standard Trade Terms.....................................................43 3.1 Introductory ................................................................ ................................................................ ............ 43 3.2 Changes in Incoterms® 2010............................................................ ..................................................... 51 3.3 Summary of Incoterms® 2010............................................................ ................................................... 53 3.4 Division of costs, risks and responsibilities ................................................................ ............................ 58 3.5 Miscellaneous points ................................................................ .............................................................. 58 Chapter four: International Trade Law ................................................................ .....................................63 4.1 The legal environment of the export/import transaction ................................................................ ........ 63 4.2 Managing legal risk by drafting complete and precise international contracts...................................... 64 4.3 Major legal systems: civil law, common law and Shari’a ................................................................ ....... 66 4.4 Jurisdiction and choice of law ................................................................ ............................................... 67 4.5 International trade and the U.N. Convention on Contracts for the International Sale of Goods (“CISG”)............68 686 final avh.indd 5 23/04/12 18:32 6 ICC Guide to Export-Import 4th edition 4.6 Performance, breach of contract and remedies for breach of contract .................................................... 70 4.7 Contract negotiations and pre-contractual liability....................................................... ...........................72 4.8 Model or standard contracts in international trade ................................................................ .................74 Chapter FIVE: Focus on International Sales: the ICC Model International Sale Contract* ...........75 5.1 Export/import transactions and the ICC Model International Sale Contract.............................................75 5.2 Commercial practice: transactions based on pro forma invoice, purchase order and/or standard contracts ....77 5.3 Distinguishing sale contracts from other international business transactions........................................78 5.4 How to use the ICC Model International Sale Contract ................................................................ ............79 5.5 Who should use the ICC Model International Contract of Sale?........................................................... ....80 5.6 Key clauses and provisions in the ICC Model International Contract of Sale...........................................80 Chapter SIX: International Dispute Resolution: International Litigation, Arbitration and ADR ....89 6.1 Preparing an international dispute resolution strategy........................................................ ....................89 6.1.1 Why dispute resolution is vital ................................................................ ...............................89 6.1.2 Discuss dispute resolution during contract negotiation and drafting.....................................90 6.2 After a dispute arises.......................................................... ................................................................ .....90 6.2.1 Working it out - contractual foresight and adaptation clauses ..............................................90 6.2.2 Talking it over - waiver, re-negotiation, assistance of an expert ...........................................91 6.3 International litigation...................................................... ................................................................ ........92 6.3.1 Litigation ................................................................ ................................................................ 92 6.3.2 Where to bring suit: jurisdiction and choice of forum........................................................... .93 6.3.3 Choice of law and applicable law ................................................................ ..........................94 6.3.4 Enforcement of judgements...................................................... .............................................94 6.4 International commercial arbitration ................................................................ .......................................94 6.4.1 Benefits of international commercial arbitration..................................................... ...............94 6.4.2 Potential disadvantages ................................................................ .........................................96 CHAPTER SEVEN: ICC Arbitration and Dispute Resolution Services........................................................ .97 7.1 ICC Arbitration ................................................................ ....................................................