Contracts for International Sale of Goods (CISG)

Contracts for International Sale of Goods (CISG) is a convention intended to create a new international economic order. USA was the first initiator for this convention. This is a rule for drafting a uniform international sales contract. This convention apply to those countries who adopted and ratified the convention.

useful link:
http://www.cisg.law.pace.edu/

LETTER OF CREDIT

A letter of credit (LC) is a promise by a bank to pay to the seller (beneficiary) on behalf of the buyer (applicant). It is an international transaction facility which helps to run international business smoothly. Importer and exporter use LC to protect themselves. Here bank acts as an uninterested party except there the bank charges. A LC from a bank, guaranteeing that the payment from the buyer to the seller will  made on time and correct amount. Because of international trading the factor like distance, different laws in each country and difficulty in knowing each party personally, LC has a very pivotal.

There are different types of method of LC, such as:

Irrevocable

Unconfirmed

Confirmed

Standby letter of credit

Revolving letter of credit

Transferrable letter of credit

Back to back letter of credit

You can find some important information using this link below.

http://www.investopedia.com/terms/l/letterofcredit.asp

Also you can find some important Business Letter format in this link below.

http://www.4hb.com/letters/

International Commercial Terms

In 1936 International Commercial Terms (INCOTERMS) was introduced and at present INCOTERMS 2000 is affected. But from 1^st January 2011, the eighth version of INCOTERMS will be affected. INCOTERMS promulgated by the International Chamber of Commerce (ICC) in Paris, France. INCOTERMS standardize trade terms internationally. It is optional for the two parties whether they will conclude their contract according to the INCOTERMS or according to the domestic commercial terms.

Terrible Silence

The winds are doing beguiling tricks,

soft breeze become warm.

I am waiting for beautiful tomorrow,

doing solitary bath in dews.

It’s like thousand years to walk.

Yet my eyes consist with full of dreams.

Unbearable difficult to live leaving you.

Hidden breath in folded heart to bloom.

By Arifur Rahman Khan.

guys it's a peom written by me on 29th of november 2006. Please give me your honest opinion.

Legal Personality and The European Union

After the Treaty of Lisbon the European Union (EU), has a legal personality and it can be sued by anyone of the member state or any citizen of EU. The European Community has the power to conclude and negotiate agreements in line with its external powers, to become a member of an international organisation and to have delegations in non-member countries. The question of the Union's legal personality has essentially been raised in connection with international relations, especially the power to conclude treaties or accede to agreements or conventions. The Union does not have institutionalised treaty-making powers, i.e. international capacity to enter into agreements with non-member countries. However, it pursues its own objectives at international level, whether by concluding agreements through the Council of the European Union or by asserting its position on the international stage, especially in connection with common foreign and security policy (CFSP).

Try the link below.

http://europa.eu/scadplus/glossary/union_legal_personality_en.htm

Power Point Presentation on Fairtrade

http://www.slideshare.net/arifurkhan/workshop26-5676392

Hague –Visby Rules

As indicated these duties can be modified or excluded by the terms of the contract of carriage. The shipper of goods however little bargaining power as against the carrier and any subsequent holder of a bill of lading has even less influence over the terms and conditions of this contract to which he becomes a party under Carriage Of Goods Act 1992 or Bill of Lading Act 1855. Carriers were, therefore, able to include elaborate provisions in their standard form contracts of carriage restricting or excluding their liability for loss or damage to goods which they agreed to carry.

The Hague-Visby rules protect the carrier and carrier can exclude certain liability relying on this rules. But the carrier must ensure that the seaworthiness of the ship, the efficiency of the crew and equipment and the cargo worthiness of the vessel. This contract is covered by the bill of lading for only carriage of good by sea.

Commercial contracts

Usually a contract is take place between two individual parties, but in commercial contracts the parties are the business parties. There are all elements of contract is present in commercial contracts, such as An offer, an unconditional acceptance, Intention to create legal relationship and considerations. Counter offer can be made in a commercial contracts, if the there anything be added with the original offer or varies the terms of the original offer, will be regarded as a counter offer.

Contracts for the sale of goods are the most common commercial contracts.

International Sale Contracts

International sale contract is a contract which is made between a seller and a buyer from two different countries. Some time there are more than two countries involved is an international sale contracts. In an international sale contract most of the time the transportation of goods  made by Sea.  In a sale contract when the seller exports there should be some elements required.

For instance, there will be the underlying contract of sale which sets out the goods, the mode and place of delivery, the way payment is to be made and other incidents.

Secondly, the carriage contract can be done either by the seller or the by the buyer.

Thirdly, the insurance of the good must be made whilst in transit or voyage.

Fourthly, the export and import authority’s requirement should be fulfilled either by the seller or by the buyer.

Finally, the buyer should make the payment by cash, or by bill of exchange or by documentary credit.

Carriage Of Goods By Sea

The bill of Lading is such a interesting document, which is an evidence of the terms of the contract when it is in the hand of the shipper. But when the bill of lading is tansferred to an endorsee the bill of lading will become the contract's terms.

Martin Dockray, Cases and Materials onthe Carriage of Goods by sea, 3rd edn, 77p.  

Fair Trade

As I am a student of International Commercial Law, I have an interest about international trade. I found one topic is interesting is “Fair Trade”. As, it was my workshop and I was the lead writer on that workshop, I studied a bit further. I found one most interesting thing, In the name of fair trade the western countries getting benefit. They use cheap labour from the most developing countries. The main purpose of the fair trade is to remove the poverty and the aim is to give the wages depending upon the economic condition of the particular country. It is evident that most of the developing country’s living expenses is lower than any developed country. My issue is that as the importing country getting the same quality product from the developing country for less money they are benefitted. But the developing country are always left behind because the poor worker are getting the contemporary wages according to their social economic condition of their country, though the unemployment problem is solving.

If the develop country pay a little more to the worker of the developing country then may be poverty can be removed a bit faster.

Child Labour

There are many middle east countries like Saudi Arabia, United Arab Emirates, for camel racing they use children as camel jockeys. It was happened because of child trafficking. Those middle east countries used to bring those children from third world countries for low prices. The race is so dangerous and most of the time the child, who was used as a camel jockey, was died.

But now the situations had been changed. The United Arab Emirates banned on the use of underage camel jockey. The other countries like Saudi Arabia, Jordan Kuwait, Qatar, Bahrain, Yemen, Lebanon and Egypt also agreed with the banning of underage camel jockey. Moreover there are many issue to write about child labour, but I think this issue need to be noticed once again.   

One country can earn foreign currency and national trade can be improved by  implementing cost, insurance and freight (CIF) contract on  export and free on board contract (FOB).import. Also the country can  increase its export turnover and reduce its import turnover, thereby improving its international trade balance.

Moreover there is another issue is that about the third party, who is the shipper. If any the goods damaged by the stevedores during loading the goods on ship, then who will take the responsibility. Is the responsibility goes to the carrier company for the mistake of their employee? If it is CIF contract, then once the goods cross the ship rails then the damages will go to the buyer. But later on buyer can claim damages to the insurance company. I think, this is the most complicated area of CIF contract, because here the third party carrier company is related, insurance company is related as well as the seller can be face damages, if he could not get the goods delivered on due time.

Sorry folks there wee some typing mistake in my previous article.

CIF and FOB contract

One country may  foreign currency can be saved and  national trade can be improved by  implementing cost, insurance and freight (CIF) contract on  export and free on board contract (FOB).import. Also the  country will increase its export turnover and reduce its import turnover, thereby improving its international trade balance.

Moreover there is another issue is that about the third party, who is the shipper. If any thing happened wrong or damaged during the loading the goods, then who will take the responsibility.

Fair Trade

Summary of Fairtrade workshop 3 The notion of fair trade was shaped in the year following Second World War. Fair trade is a financial relationship between producers, sellers, and consumers based on the principle of equity within the exchange of goods. Equity is achieved via creating a platform for trade that is transparent and therefore accountable for the just treatment of all producers.  The fair trade is mainly based on the nine following principles: 1.   Create Opportunities for Economically and Socially Marginalized Producers. 2.   Develop Transparent and Accountable Relationships. 3.   Build Capacity. 4.   Promote Fair Trade. 5.   Pay Promptly and Fairly. 6.   Support Safe and Empowering Working Conditions. 7.   Ensure the Rights of Children. 8.   Cultivate Environmental Stewardship. 9.   Respect Cultural Identity. MERITS The purpose of fair trade is to give the best price to the producer and the consumers. In this way fair trade helps to enable the producers of the developing country to trade straight to the western country as a result the functions of middle man has been removed from the transaction. DEMERITS However, there are some fair trade organisations that help the producers of developing countries to put extra pressure on the big company for anti competitive practice. On the other hand, there are some western companies who use the developing countries work force but give the low labour cost which does not reflect the fair trade.   Finally the producers, who supply the quality products in reasonable price, will survive in the market. This is true in the present world market. It should be remembered that, the grass root producers of the developing countries should be given more opportunities to trade in the developed countries. Thus, the poverty of the developing countries can be removed by fairtrade. And that’s why the notion of fair trade came into play.                                                             By                                         ARIFUR, MD. RAHAT, FALGUNI.

Wednesday, 10/20/2010 5:33 PM by Arifur Khan    

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