One way to avoid misunderstanding is to agree to use what are called General Standard Conditions. These are standardized contract terms that permit the parties to refer to a pre-established set of rules that can be incorporated into their contract.

Once such General Standard Conditions have been adopted, they are legally binding whether or not both parties are aware of and understand every provision.

Incoterms, is one particular kind of General Standard Conditions so if the exporter and buyer agree on an FOB price - it has a clear defined Incoterms meaning and is legally binding.

Checklist for Indirect Export

1. Prepare a short list of trading houses that might be interested in your Product.

2. Try to get references and recommendations about them.

3. Ask for information from each, explaining why.

4. Visit the most promising to find out what they can do for you.

5. Keep in mind which foreign markets you intend to enter first.

6. Reserve those foreign markets you wish to export directly.

7. Supply the trading houses selected by you with information about your company and products.

8. Negotiate an agreement whereby the trading house buys directly from you or acts as your export agent.

9. Fill each export order as and when received and maintain contact. Procedures for Indirect Exporting

Checklist for Direct Exporting

1. Decide whether you will sell directly to foreign users or through an import agent or whether you will sell to a foreign distributor, who will resell your product.

2. Prepare literature about your company and its products that can be used to support your export efforts.

3. If selling directly to foreign users yourself, prepare a sales campaign (direct mail, trade show participation, foreign visits, etc.) and develop a list of sales leads.

4. Begin sending letters to prospective customers and following up on sales leads. Procedures for Direct Exporting

Checklist for selling through an
Import Agent or Distributor

Begin the search for a suitable agent or distributor in each foreign market

1. Choose an agent or distributor and negotiate an agency or distributorship agreement.

2. Monitor the performance of the agent or distributor.

3. Sales Contract for the Exporter.

Recommended reference: How to Develop your Export Market?

Next page 6/9 - Incoterms - "...a situation in which everything is the responsibility of the seller and the extreme where everything is the responsibility of the buyer..."

Back to page 1/9  2/9  3/9  4/9  5/9  6/9  7/9   8/9  9/9