International trade agreements are the cornerstone of the global economy, regulating the exchange of goods and services between entities from different countries. Georgia, with its open economy and numerous free trade agreements (e.g., DCFTA with the EU), offers unique opportunities for businesses on the international stage. Drafting a trade agreement requires meticulous knowledge of customs regulations, transportation rules, and international standards. Such documentation must consider not only sales terms but also certificates of origin, quality control, and compliance with international sanctions. A robust trade agreement reduces barriers at borders and ensures transaction security.
What Do International Trade Agreements Cover?
Legal support for international trade involves a broad range of documentation necessary for streamlining the logistical and financial chain:
- International Sales Terms: Detailed regulation of product specifications, pricing, and delivery schedules.
- Incoterms Adaptation: Selection and integration of the optimal delivery term (e.g., EXW, FOB, CIF) into the contract.
- Customs and Tariff Compliance: Consultation on benefiting from free trade regimes and customs declaration issues.
- Quality Certification and Inspection: Establishing rules for checking product compliance with international standards (e.g., ISO, CE).
- Transportation and Insurance: Drafting legal terms for cargo shipment and insurance against potential damage.
- International Settlements: Rules for using documentary letters of credit, collections, and other banking instruments.
Common Scenarios Requiring a Trade Agreement
1) Exporting Georgian wine or agricultural products to European and Asian markets; 2) Importing industrial machinery or vehicles from abroad; 3) Establishing international distribution networks with exclusivity terms; 4) Trading through Free Industrial Zones using tax benefits; 5) Implementing international delivery systems by e-commerce platforms.
Georgian Legal Framework
The Customs Code of Georgia is paramount in international trade, regulating the procedures for bringing in and taking out goods. Georgia is a member of the Vienna Convention (CISG), which serves as the primary legal framework for international sales. The Association Agreement between Georgia and the EU (DCFTA) is also decisive, opening the market for Georgian products. Additionally, Georgia is a member of the World Trade Organization (WTO), obligating it to follow international principles of trade.
Step-by-Step Process
The process begins with an analysis of the trade operation: what type of product it is, which countries are involved, and what customs regime applies. In the second stage, a lawyer prepares a draft agreement incorporating Incoterms rules and quality control mechanisms. The third stage involves agreeing on financial instruments (letters of credit, guarantees) with banks. In the fourth stage, collaboration occurs with customs brokers and carriers to ensure completeness of documentation. In the final stage, the agreement is signed and its performance monitored until cargo delivery.
Why Use Legal.ge to Find a Specialist?
International trade involves complex customs and logistical procedures, where documentary flaws can lead to cargo delays at the border. The specialists on Legal.ge will help you draft a solid trade agreement that accounts for all international regulations. Our platform provides access to experts with practical experience in export-import operations and international commercial law. Find your trade lawyer on Legal.ge and expand the geography of your sales.
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