Foreign Trade Contract Drafting and Review

Foreign trade contract drafting and review

A foreign trade contract is not a formality but the document customs and the bank will check you against. Its wording drives the customs value, the currency settlement deadlines and your protection in a dispute with the supplier. We draft the contract from scratch or review an existing one so it works for the customer rather than creating risks. The service is for companies and sole proprietors across Ukraine — Kyiv, Odesa, Kharkiv, Dnipro.

Why the contract matters to customs and the bank

The contract is the basis of the whole deal. Customs uses it to confirm the customs value and delivery terms, and the bank — for currency control of payments. The contract is not subject to mandatory registration, but it is checked by both customs and the bank, and any inaccuracy turns into questions at clearance or during payment.

Mandatory sections of the contract

A contract is assembled from blocks, each closing its own risk.

Incoterms delivery terms — the heart of the contract

The Incoterms basis (EXW, FCA, CIF, DAP, etc.) determines who pays for delivery and insurance, where the risk passes and what is included in the customs value. A mistake here is costly: a basis chosen “on paper” may not match the actual logistics and increase the payments. We align the basis with the real transport scheme and the payment calculation — how the basis affects the amount is shown by the customs payments calculation.

Currency and settlement deadlines

Settlements under foreign economic operations are subject to currency control: money or goods must “return” within a set period — currently mostly 180 days. Missing the deadline leads to a penalty. In the contract it is important to state clearly the contract currency and the settlement currency, the payment order (advance, post-payment, letter of credit) and the deadlines, so as not to fall outside currency control. We cover these questions as part of foreign trade consulting.

Quality, packaging, marking and documents

The contract sets requirements for quality, packaging and marking, as well as the list of shipping documents: invoice, packing list, certificates. These wordings must match what is actually required at customs — otherwise the document set will not add up. Samples and a breakdown of the sections are in the materials on the foreign economic contract and the sections of the sale contract.

Force majeure in today's realities

A template force majeure clause no longer protects. Today it is important to include circumstances relevant to the route: hostilities, port blockades, delays due to sanctions, border closures. It matters to spell out not only the list of circumstances but also the procedure for notification and confirmation (for example, by a chamber of commerce certificate).

Applicable law and dispute resolution

The contract states which country's law applies and where disputes are resolved — in a national court or international arbitration. This determines how realistically a debt or losses can be recovered. An inconvenient jurisdiction makes protecting rights expensive and slow, so this section is worked out in advance.

Common mistakes in contracts

• A vague subject — customs cannot tell what is being shipped, and the code is hard to select.
• The Incoterms basis is not aligned with the real logistics and customs value.
• The contract and settlement currencies differ, and no exchange rate is stated.
• A weak force majeure clause without current circumstances.
• Settlement deadlines set without regard to currency control.

How we work with the contract

Frequently asked questions

Foreign trade contract with Trans-Hope

Trans-Hope drafts and reviews foreign trade contracts so they pass customs and currency control without surprises, then handles clearance through its own customs broker. Send a draft contract or the deal terms — we will prepare the document or give an opinion with edits.