Presentation on theme: "International Trade Business Surgery Wednesday 18th May 2011 Jim Fanshawe, Suffolk International Trade Group and UKTI Alex Davey, Birketts LLP Gordon Hopkins,"— Presentation transcript:
International Trade Business Surgery Wednesday 18th May 2011 Jim Fanshawe, Suffolk International Trade Group and UKTI Alex Davey, Birketts LLP Gordon Hopkins, PKF LLP Graham Coker, NatWest
International Trade Business Surgery Wednesday 18th May 2011 Should I be an exporter Developing you export business
Exporters Enhanced innovation
Am I ready to export?
Developing your export business vs Consider your time and personnel resources
Developing your export business
Are Your Contracts Watertight? Alex Davey - Partner
About Birketts Corporate Private Client Property WillsTax & Trust AgricultureCommercialResidential Corporate/ Commercial Shipping and Logistics Banking/ Finance Health & Safety/Transport Regulatory Employment Litigation Corporate Immigration Contentious Support Construction Competition Law
Topics 1.Why is a contract important? 2.Contents of Contracts 3.Incorporation of Terms 4.Conclusions and Tips
Why is a Contract Important? Relationships change Regulates rights and responsibilities in law Risk management Time and costs
International Trade Contracts Sale Contracts Payment - Letters of Credit - Guarantees - Factoring/invoicing Agreements Transport contracts Insurance contracts
What sort of Contract? Full bespoke signed contract Signed Agreement and signed T & C’s Signed Agreement plus T & C’s Quote plus T & C’s Quote Verbal Agreement No Contract
A “good” contract? Clear written record of the deal Should be relevant to the transaction Easily understood Record essential terms to minimise risk of dispute
Potential Pitfalls Identify Parties Liabilities/Limits and Exclusion of Liability Terms and Termination Law and Jurisdiction Agents & Principals (Carriers and Forwarders) Incorporation of Terms and Conditions
Agent or Principal Customer (a) Principal (b) Sub- Contractor (c) Customer (a) Agent (b) Contractor (c)
Incorporation of Terms Introducing your contract at the right time in the transaction (i.e. the beginning) Making sure your terms, not the other party’s, apply Individual onerous or unused provisions.
Conclusions Why a contract is important? Contents of a contract Incorporation of terms Tips -make sure you understand your contract and standard terms -amend stationery
Alex Davey 24-26 Museum Street Ipswich Suffolk, IP1 1HZ Tel: 01473 406234 Fax: 01473 416915
RBS00000 Graham Coker Trade Director Global Transaction Services UK NatWest
RBS00000 High Risk Exporter Low Risk Open A/C D/A Collection D/P Collection Unconfirmed L/C Confirmed L/C Cash in Advance Low Risk Importer High Risk
RBS00000 Flowchart of a Typical Documentary Credit CONTRACT Paymen t Documents Payment Advising/Confirming Bank Issuing Bank Buyer/Importer Supplier/Exporter Sales Contract and Agreement to settle by L/C Requests L/C As stipulated by L/C Documents L/C Goods shipped L/C advised Payment Issuing Bank
RBS00000 Flowchart of a Typical Documentary Collection CONTRACT Payment Documents Payment Remitting Bank Issuing Bank Buyer/Importer Supplier/Exporter Sales Contract and Agreement to settle by Collection Goods shipped Paymen t Collecting Bank care D/P or D/A? Documents
RBS00000 BASIS OF PRICE INCOTERMS 2000 (www.incoterms.org) Ex-Works FOB CFR CIF DDP Who pays: transport? Insurance? Customs/duties/import taxes?
RBS00000 BASIS OF PRICE Sight no credit period offered payment upon presentation of documents is this what competitors offer?
RBS00000 BASIS OF PRICE Term credit period give e.g. 180 days from date of shipment payment not made until the end of the term high price if credit given? Possible to discount? Include discount costs in price?
RBS00000 WHAT ELSE? Pre-shipment finance Invoice Finance Open account debtor collection
RBS00000 HOW CAN BANKS HELP? Guidance and advice Letter of Credit country risk appetite Indication of deal specific pricing Letter of Credit Suggested terms proforma
RBS00000 QUESTIONS? Any Questions?
RBS00000 CONTACT Graham Coker NatWest Global Transaction Services UK 07789 922537 firstname.lastname@example.org