What are the terms and conditions of an export order ?

The term and condition of an export order would vary from order to order depending on the nature of product, parties involved and so on.

But the following are the standard clauses of an export order:

1. Product and its description

2. Product specifications as regards its quality


3. Price: FOB/CFR/CIF etc., as per INCOTERMS 2000

4. Quantity

5. Payment Term: D/A, D/P, Letter of Credit, Advance Payment etc.

6. Delivery Schedule: Time Period; partial/complete dispatch

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7. Mode Shipment: Air/Sea/Road/Post

8. Type of shipment: Direct/Transshipment

9. Inspection


10. Labeling, Packaging, Packing and Marketing requirements

11. Insurance: By exporter/importer

12. Documents required

13. Escalation clause: Sharing of increase in cost

14. Force Majeure Clause: Clause providing for excuse of non performance due to acts of God.

15. Arbitration Clause: Clause for settlement of dispute

16. Fines/Penalties

17. Applicability of Law

The exporter and the importer hold negotiations with regard to the above points conclude the business deal.

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