These include:
- Purpose of terms of trade – will they be used for a particular purpose, such as sales confirmation or invoice, or as a stand-alone document
- Price – including currency and provision for price changes
- Payment terms
- Ordering – including ordering procedure, delivery dates, changes, delays and cancellations and minimum order size
- Shipping terms
- Insurance and liability
- Warranty
- Packaging and storage specifications
- Intellectual property – protection for IP in formulations and brands
- Territorial and market restrictions
There may be other issues, specific to your company that should be addressed in terms of trade (which are also known as export conditions of contract and conditions of sale). Think about what might go wrong and get input from your marketing, operational and financial executives.
Export Credit Insurance
External support is available to help businesses protect against the risk of non-payment under export contracts.
As your first line of support, banks provide a range of financial services such as loans, foreign exchange management and bank guarantees to help mitigate the risks presented by exporting.
Complementing the services provided by banks and financiers, Export Credit Insurance helps protect you against the risk of non-payment of a credit or loan under an export contract. Currently located within the Treasury, the New Zealand Export Credit Office (NZECO) is the officially supported export credit agency for New Zealand. NZECO products guarantee payment if your buyer defaults and allow you to extend competitive credit terms to buyers.
