Your first step is to select your manufacturer or supplier and place a contract. At this point you should carefully calculate all overhead costs associated with customs clearance and execution of documents as well as outline the delivery schedule. Good timing is essential, especially if your business involves a high-complexity technological process or you have to comply with the terms of a tender. Failure to meet the schedule may result in penalty fees.
Our staff will make sure you avoid any unforeseen charges or penalties. We will help you find the optimal routes and estimate the costs associated with shipment and customs clearance within strict time requirements laid down by your contract. We can also take charge of the negotiations regarding delivery issues.
Purchasing goods abroad always entails an additional document flow which at times may be difficult to handle. There is a list of documents you need to provide for customs clearance. It all begins with your contract, which should include the following information:
An incorrectly written contract may result in extra paperwork (such as amendments to your contract or the need to obtain additional documents) and often extra customs charges. Contact us, and we will help you save time and unwelcome costs arising from FTC correction. Our staff will ensure that any documents required for moving goods to their destinations in Russia are made out properly and with full regard to your interests.
Here are some key points you should discuss with your partner before signing the contract:
Product specifications. You must have a clear idea of the type of goods, their amount, price, packaging, units of measurement and delivery terms.
Payment terms. Make sure you agree on the payment procedures and schedule, the late payment fees, the payment currency and the contract currency. According to the standard international procedure, the shipper pays the commission to the sending bank and the recipient covers the fee charged by the receiving bank; to be on the safe side, however, you should discuss the payment arrangements with your partner. Please be advised that a transaction ID must be obtained for any contract worth over $50,000 from the bank specified in the contract.
Delivery terms and schedule. The parties must determine their obligations and responsibilities as to the schedule and place of delivery and decide which party will arrange for shipment and cover the delivery and insurance costs; a transfer scheme for property rights and liabilities must also be selected.
Depending on your delivery arrangements, you will have to choose your incoterms. Incoterms are international rules recognized by governmental agencies and businesses all over the world.
Supporting documents. This issue must be made clear at the very start as incorrectly written documents may cause a host of shipment, customs clearance and accounting problems.
Some suppliers, for instance, do not consider it necessary to provide certificates of quality for their goods (unless agreed otherwise); however, Russian recipients need these documents for subsequent product certification in Russia. The same goes for certificates and opinions issued by Chambers of Commerce in countries of origin. Our managers will advise you on the types of documents and data to request from your suppliers.
Packaging and labelling. Any goods entering the Russian Federation must bear labels in Russian. Some types of goods require labelling with certification data or technical characteristics. Absence of labelling may delay customs clearance or, for certain customs procedures, even render clearance impossible. Packaging is also crucial as it must ensure goods safety during shipment and reloading. When choosing the packaging, always consider the delivery mode – and our unreliable climate.
Claims. Claims may be presented by the buyer with respect to product quantity or quality or by the seller in case of non-compliance with the payment terms. To make sure your interests do not suffer, your contract must clearly outline the dates and procedures for claim-filing as well as specify the documents you will need to support your claim.
Arbitration. In case of any disputes, the parties may apply to commercial court. Your contract must specify which legislation will be used in dispute settlement. «Centr Sodruzhestva» Centre employs experienced legal staff ready to protect your rights and interests. We are ready to provide the required counselling and represent you in court.
These are just a few issues to bear in mind when considering a foreign trade contract. In reality, many more challenges can be expected, each of them calling for detailed attention. If you do not have the competent staff to tackle these problems, why not contact us? Our fully experienced team will assist you in negotiations with your suppliers, help you manage your contract and facilitate dispute resolution or any additional paperwork.
If you are not planning to enter an FTC yet wish to purchase some products from a foreign manufacturer/supplier, we can take the trouble out of this process. Our trading companies will
Feel free to contact our staff for any additional information.