International Trade Law

practice of constabulary chosen to influence a transactions is all the way recount the legal consequences of their goual activities for example the right, obligation, and remedies for grant parties, and they canful choose the law of particular country or world-wide law to govern their squinch. International trade law (CISG) includes the appropriate rules and tradition for handling trade between declares and it forms part of municipal law if the admit parties be from the contracting state of CISG.With assistance from Unification of Private Law (UNIDROIT) for filling gap in the coverage of issues by the CISG which is the validity of contract, work of contract on property and goods, exclusively or non-sale aspects for distri merelyion agreement, and inability of sell for death or personal injury cause by the goods on every person. The domestic law that governs the transactions in Malaysia is the postulate Act 1950 and supplement from Sale of Goods Act (SOGA) 1957 (rev ised 1989) which is ground on the position Sales of Goods Act.As a Malaysian lawyer, I recommend you choose the bewilder Act 1950 and SOGA as the judicature law because the assembly line you based is on Malaysia home soil and it creates a familiar operator to you. alike that, iron Act 1950 and SOGA already govern the basic contract of goods and contract of policy but they did not cover the contract of carriage. However, because of Malaysia still practices the Hague Rules by moral excellence of the Carriage of Goods By Sea Act 1950 (Revised 1994), you have to choose the Hague Rules to govern your contract of carriage even though thither are braggy weaknesses.For contract of carriage, there is measure frontier used on c altogethering call as International Commercial experimental conditions (INCOTERMS), and Cost, Insurance and dispatch (CIF) and Free On Board (FOB) are the normally used term in the trade. So, I recommend you to practice FOB even by dint of your product scathe volition slightly lower due to cartel from buyer, but the cost testament reflect on save at the knocked out(p)rage of the products. Besides, the master(prenominal) make is you do not need to make arrangement on carriage and thus this get out reduced the burthen to you as a sellers responsibilities.Policies and regulations have the very sozzled relationship because regulations are come under the policies. The policies and regulations at Malaysia are based on an open and encourage motive, so, normally you can smoothly doing your chore on merchandise the product out of Malaysia to foreign countries. This is see finished with(predicate) the durian is one of the fruits that identifies by the Third National Agricultural insurance policy (1998-2010) (NAP3) as important role in creating competitiveness of the Malaysia fruit and vegetable industry in the ASEAN.However, you need to take care about several(predicate) policies and regulations of your dealing countries wh ich are ASEAN countries and China in order to gain the benefits from all your dealing exporter countries which are actually on the free trade compass as ASEAN Free adult maleage Area (AFTA) and as well as ASEAN-China Free Trade Area (ACFTA). Firstly, other than the list of preferential tariffs products that under the Common trenchant Preferential Tariff (CEPT) scheme , the 40% rules of origin are in any case one regulation that need to comply with in able to benefit from preferential market access.So, you need to obtain a different protection of origin from Ministry of International Trade and Industry (MITI) to trade at some(prenominal) free trade areas. Besides certificate of origin, there are regulations for the prime(prenominal) of trading goods on AFTA and ACFTA. Start from sign of AFTA and ACFTA, the ASEAN countries and China fruits market proceed to more(prenominal) open market as can see with the fruits quality control have been replace to which is more harmonize and regularise call as Sanitary and Phytosanitary Measurers (SPS).This is to prevent countries to protect their domestic unsophisticated producers from imports with stringent phytosanitary measures which are non-science based, discriminatory and non-transparent. So, you now can be more efficiently and effectively on export your product to these particular countries. ? solve 2 International agreement different to domestic contract that unless contracting within the familiar home country itself, it is more alter in contracting with various countries and some terms may be in unfamiliar countries.So in contracting International agreement, there normally inevitable for more trade documents that covers wider range that classified under quaternary main groups which is Financial, Commercial, official, and Transport and insurance documents. Compared to International agreement, domestic contract normally postulate fewer types of documents especially only commercial and insurance type . This is because domestic contract only contracting the goods move within country territory and did not cross over he national boarder, so documents like certificate of origin in Official group of documents, bill of landing (BOL) or airway bills (AWB) in Transport group of documents are not needed. Term of recompense decide on International agreement is more modify than for domestic contract in reasons of more person lease in the payment process for International agreement. This process can explained though the general example of payment term which is letter of credit (LC) that involve cuss parties assistance by act as a middle man in the payment process.The next main difference between twain is the seek face by each other. International agreement is candid to a number of risks such as buyers risk, conveyancing risk and transfer risk that may be in any case face by domestic contract. However, these similar risks faced by the domestic contract will be lower in term of cost factor and some other risks such as exchange rate risk and country or sovereign risk will exclude to domestic contract that only contracting at local currentness and local policies.Besides that, the transportation and delivery aspect must follow the international standard for example the standardized dimensions of shipping pallets for International agreement, but this requirement is not so strict for the domestic contract. Product packaging and labeling aspect is in like manner not so concern by domestic contract because it normally travels across short exceed. However, for International agreement that the goods travel at capacious distance, export packaging must be suitable for the particular humour of transport in order to erect maximum protection.There are four different types of contracting methods available which is negotiating a complete contract, choosing international law to govern the contract, agree on standard form or terms, and standard industry contracts. Negoti ating a complete contract is not suitable to you because your business was just at the beginning stages of launching the new market, so there are many unknown on the others domestic law that will cause unfair shoes in the contracting, thus this will also incurred even more time in making the final agreement.For your situation that deals with many countries, standard industry contracts seem more suitable to you but there are still not any single familiarity that published the standard contracts of durian even though there are already mature grow of durian industry in ASEAN. Then, bill terms contracting method is suitable to you not only because it is a speedy and convenient way of contracting, but it also benefit to you as an fferor that has priority in the last shot doctrine in the courts. Besides, the objective of choosing international law to govern the contract is to provide more comfortably for other parties to enter the contracts, rather than selecting particular domestic law. So, as I recommend you to choose the Malaysia law as governing law, this method is clearly not suitable because it controversy to governing law that you chosen.The object clauses can create legal and practical problems to you in term of quality and spec of the goods you export. Certificate of origin is basic requirement for export goods to other countries, and as discussed before, you needs to obtain a certificate of origin Form D from Ministry of International Trade and Industry (MITI) for trade on AFTA, and Form E for trade on ACFTA in order to fulfill the CEPT scheme.In other only if meaning, you must to obtain the certificate of origin in order to enjoy the benefit of tariff in the free trade area and scarcely act as a passport that show approval to entering particular market. The packing aspect of goods specification creates the problem on the transport of durian to other countries by the strong odour of durian leaking out from the poor packaging.So you need to practi ce the suitable packaging method for your export durian especially your fresh durian that exported by air cargo. Besides that, you must prepare for the future of sustainable packaging that reflect in the designed in a holistic way and be make from responsibly sourced materials that are safe and effective throughout its lifecycle, meet criteria for execution of instrument and cost, meet consumers choice and expectations and, finally, it has to be recovered efficiently after use.For the price clauses, you better determine the price that can change over time subject to review and modification because there are fluctuate in the currency exchange among all the different countries that will cause wide lost if there are big differences between the current currency and the currency that agree on the fixed price agreement. Payment clauses also need to be aware because the method of payment will need your receivable ability, and letter of credit seem more suitable for you because it idio m more on the seller side through the process that provide more go through on receiving of payment for seller side.Penalty for late payment in this clauses will not only provide extra insure to you through the charges gain for the late payment, but it also help in your financial arrangement due to the on-time payment and assurance of creditability of the buyer through the slightly higher of penalty being set. Delivery and shipment clauses will also raise problem through period time that involve in transport the perishable durian product.So, in order to maintain the product incandescence especially when transport at long distance like to China, the date and also time must specify in detail referred to the time of harvest and the available of transportation to prevent any extra days or hours it incurred to transport the product. Besides that, port of shipment is also a critical element in this clause because the distance between the choosing port and the distribution centre determi ne the product freshness also.For example in China, you can choose the port of Guangzhou because it is manageing being a centre for exporting Malaysian durian to China. As I advert you to choose Malaysian law as the governing law, you need to state this clearly in the clause of governing law. Besides, after state of the governing law is Malaysian law, follow by the jurisdiction will state Malaysia court is the place to resolve dispute. If this never state in the contract, it will depend on court to decide which law apply.The clause of head of title and risk is also a vital term to consider when there are accidents happen to the goods on the carrier stage or incident of unpaid seller. ? Bibliography 1. AB Teoh. 2008. Exporting and International Trade access on 15 July 2010 2. Essential international trade law by Michelle Sanson. 2002 by Cavendish Publishing (Australia) Pty Limited. Available www. cavendishpublish. com. access on 15 July 2010