Standard Commercial
Contract Terms
A
national standard contract form is used as the basis for all international
trade transactions and technology licensing agreements. Non-government entities
tend to be flexible in negotiating some contractual provisions. However,
there are some minimum contractual terms which must be present Packing and Shipping Marks: Import contracts may specify packing and make the seller liable for
damage due to improper packing. Markings usually required on containers
include the contract number and destinations. Shipping Documentation: Shipping documentation, which must
accompany the bill of lading or air way bill, includes the letter of credit,
certificate of quantity and quality, invoice, and packing list. Technical Specifications: Detailed drawings, technical
specifications, assurances of proper installment and customer training are
usually attached to the standard form contract as technical annexes. Payment Term: Payment for
import transactions is usually made through irrevocable unconfirmed letters
of credit issued by the Bank of China. Such letters of credit are payable
only by the branch which opened the payment instrument. China has established
a good record for reliable and prompt payment providing that the collection
documents are free of any discrepancies. Chinese buyers generally do not
accept letter-of-credit banking charges. Inspection and Insurance: The contract will usually specify the
State Administration of Import and Export Commodity Inspection (SACI) as the
inspector and the People's Insurance Company of China as the insurer. Open accounts or documentary collections
are greatly discouraged because of their difficulty in enforcing payments. Arbitration
In the
1980s, foreign firms strongly objected to arbitration in China because they
did not have confidence in the fairness of the Chinese arbitration
proceedings or the means to arbitrate and enforce their findings. However, by the 1990s, the China
International Economic Trade and Arbitration Commission (CIETAC), formerly
known as the Foreign Economic Trade Arbitration Commission has become one of
the world's business arbitration centers and is considered by most to be a fair
forum. Office Hours (USA) Monday – Friday
(8 AM – 5 PM EST) Office Hours (CHINA) Monday
– Friday (8 AM – 5 PM Chinese Time) M. CRISPI INTERNATIONAL, LTD. P.O. DRAWER 804 E. SETAUKET, NY
11733-0614 TEL: (001-631)
246-9683 FAX: (001-631) 689-8606 Email: Info@M-Crispi.com |